HomeMy WebLinkAboutContract 51063 CITY SECRETARY
CONTRACT NO.
TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD
EMPOWERMENT ZONE
4200 South Freeway
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,
and Town Center Mall, L.P., ("Owner") of property located at 4200 South Freeway, Lot A2, Block 1,
Fort Worth Town Center Addition, an addition to the City of Fort Worth, Tarrant County,
Texas according to the Plats recorded in Cabinet A, Slide 3776 and Volume 388-217, Page 7, of the
Plat Records, 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. Chapter 378 of the Texas Local Government Code allows a municipality to create a
PM bo od empowerment zone if the municipality determines that the creation of the zone would
promote. r,
0�(1) the creation of affordable housing, including manufactured housing in the zone;
o, CV e ) an increase in economic development in the zone;
co �G o�Q ) an increase in the quality of social services, education, or public safety provided to
Q J" o�� `(0 residents of the zone; or
(4) the rehabilitation of affordable housing in the zone.
1 yvd W Chapter 378 of the Texas Local Government Code provides that a municipality that
creates a neighborhood empowerment zone may enter into agreements abating municipal property
taxes on property in the zone.
C. On July 31, 2001, the City Council adopted basic incentives for property owners who
own property located in a Neighborhood Empowerment Zone, stating that the City elects to be eligible
to participate in tax abatement and including guidelines and criteria governing tax abatement
agreements entered into between the City and various third parties, titled "Neighborhood
Empowerment Zone "NEZ Basic Incentives" ("NEZ Incentives"), these were readopted on May 6,
2017 (Resolution No. 4782).
D. The NEZ Incentives contains appropriate guidelines and criteria governing tax
abatement agreements to be entered into by the City as contemplated by Chapter 312 of the Texas Tax
Code, as amended (the "Code").
E. On December 7, 2010 the Fort Worth City Council adopted Ordinance No. 19462
(Readopted March 1, 2016, Ordinance No. 22067) (the "Ordinance") establishing "Neighborhood
Empowerment Reinvestment Zone No.711" City of Fort Worth, Texas (the "Zone") and adopted
Resolution No. 3945 establishing "Designation of the Hemphill/Beny Area as a Neighborhood
E,� Empowerment Zone" (the "NEZ").
.� n
9 M ®; OFFICIAL RECORD
B M CITY SECRETARY
{D U
Page 1 of 13 FT.WORTH,TX
NEZ Tax Abatement with Town Center Mall, L.P., 4200 Sout A
Approved by M&C C-28690, May 15, 2018
F. 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").
G. Owner or its assigns plan to renovate an existing commercial building for use as a
laundry mat and retail space, more particularly described in Section 1.1 of this Agreement, on the
Premises (the "Project").
H. On December 1, 2017, 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.
I. The contemplated use of the Premises, the Required Improvements, as defined in
Section 1.1, 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.
J. The terms of this Agreement, and the Premises and Required Improvements, satisfy the
eligibility criteria of the NEZ Incentives.
K. Written notice that the City intends to enter into this Agreement has been furnished in
the manner prescribed by the Code to the presiding officers of the governing 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 an interior and exterior remodel of an existing commercial building
of approximately 9800 total square feet for use as a laundry mat and retail space and having
Construction Costs, excluding land, upon completion of $595,000.00 including site
development costs (collectively,the "Required Improvements")but such Construction Costs
shall be reduced by any construction cost savings. The type,number and details of the Required
Improvements are described in Exhibit "3". After construction of the Required Improvements
is complete Owner shall provide a copy of the final construction invoices to City. The invoices
shall then be attached and made a part of this Agreement and shall be labeled Exhibit"4".Minor
variations, and more substantial variations if approved in writing by both of the parties to this
Agreement, in the Required Improvements from the description provided in Exhibit"3" 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 Exhibit"3".
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NEZ Tax Abatement with Town Center Mall, L.P., 4200 South Freeway—Pad Site 2A
Approved by M&C C-28690, May 15, 2018
1.2. Construction Costs.
"Construction Costs" shall mean site development costs (including demolition and
environmental abatement), hard construction costs contractor fees; the costs of supplies and
materials; engineering fees; architectural fees; and other professional fees (including legal and
the costs associated with the financing of the Required Improvements, but not including loan
interest or legal fees associated with negotiation of this agreement); and development fee and
permitting fees expended directly in connection with the Required Improvements. The City
recognizes that Owner will request bids and proposals from various contractors in order to
obtain the lowest reasonable price for the cost of the Required Improvements. In the event
that bids and proposals for the Required Improvements are below$595,000.00 in Construction
Costs for work substantially the same as that provided in Exhibit"3"and otherwise described
in this Agreement, the City will meet with Owner to negotiate in good faith an amendment to
this Agreement so that Owner is not in default for its failure to expend at least$595,000.00 in
Construction Costs, with the understanding that the City's staff will recommend, but cannot
guarantee, approval of such amendment by the City Council. The final site plan shall be in
substantially the same form as the site plan submitted and attached as Exhibit "3". Minor
variations, and more substantial variations if approved in writing by both parties to this
Agreement, 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 Exhibit"3".
1.3. Completion Date of Required Improvements.
Owner covenants to complete construction of all of the Required Improvements by May
15, 2020, (the "Completion Deadline"). The abatement will automatically terminate two years
after Council approval if the Required Improvements are not complete. The Required
Improvements shall be deemed complete upon the issuance of a final certificate of occupancy
for the Required Improvements by the Planning and Development Department. If the Owner
fails to expend at least Five Hundred Ninety Five Thousand Dollars ($595,000.00) in
Construction Costs for the Required Improvements by the Completion Deadline as provided in
Section 1.1 of this agreement; the City shall have the right to terminate this Agreement by
providing written notice to the Owner without further obligation to the Owner hereafter.
1.4. Use of Premises.
Owner covenants that the Required Improvements shall be redeveloped and the
Premises shall be continuously used as a laundry mat and retail space in accordance with the
description of the Project set forth in Exhibit "3". In addition, Owner covenants that
throughout the Term, the Required Improvements shall be operated and maintained for the
purposes set forth in this Agreement and in a manner that is consistent with the general
purposes of encouraging development or redevelopment of the Zone.
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NEZ Tax Abatement with Town Center Mall, L.P., 4200 South Freeway—Pad Site 2A
Approved by M&C C-28690, May 15, 2018
2. ABATEMENT AMOUNTS, TERMS AND CONDITIONS.
Subject to and in accordance with this Agreement, the City hereby grants to Owner real
property tax abatement on the Premises, the Required Improvements, as specifically provided in this
Section 2 ("Abatement"). Abatement of real property taxes only includes City of Fort Worth-
imposed taxes and not taxes from other taxing entities.
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 Required Improvements over their values as determined by
TAD in May 2018, and this amount is $308,377.00 the year in which this Agreement was
entered into. Unless the amount is changed by the protest filed on behalf of the property
owner. The value will then default to the new amount as determined by TAD.
One Hundred percent (100%) of the increase in value from the
construction of the Required Improvements.
If the square footage requirement and the appraised value of the Required
Improvements are less than as provided in Section 1.1 of this Agreement, except that such
minimum construction costs shall be reduced by construction cost savings, Owner shall
not be eligible to receive any Abatement under this Agreement.
2.2. Increase in Value.
The abatement shall apply only to taxes on the increase in value of the Premises on
Pad Site 2A due to construction of the Required Improvements and shall not apply to taxes on
the land, nor shall the abatement apply to mineral interests.
2.3. Abatement Limitation.
Notwithstanding anything that may be interpreted to the contrary in this Agreement,
Owner's Abatement in any given year shall be based on the increase in value of the Required
Improvements over its value in May 2018, up to a maximum of$892,500.00. In other words,
by way of example only, if the increase in value of the Required Improvements of Pad Site 2A
over its value in May 2018, in a given year is $1,200,000.00, Owner's Abatement for that tax
year shall be capped and calculated as if the appraised value of the Required Improvements for
that year had only been$892,500.00.
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. Term.
The term of the Abatement(the"Term")shall begin on January 1 of the year following
the calendar year in which a final certificate of occupancy is issued for the Required
Page 4 of 13
NEZ Tax Abatement with Town Center Mall, L.P., 4200 South Freeway—Pad Site 2A
Approved by M&C C-28690, May 15, 2018
Improvements ("Beginning Date") and, unless sooner terminated as herein provided, shall
end on December 31 immediately preceding the fifth(5th) anniversary of the Beginning Date.
2.6. Abatement Application Fee.
The City acknowledges receipt from Owner of the required Abatement application fee
of one half of one percent (.5%) of Project's estimated cost, not to exceed $2,000. The
application fee shall not be credited or refunded to any party for any reason.
3. RECORDS,AUDITS AND EVALUATION OF PROJECT.
3.1. Inspection of Premises.
Between the execution date of this Agreement and the last day of the Term and for five
(5) years after termination ("Compliance Auditing 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.
3.2. Audits.
The City shall have the right to audit at the City's expense the financial and business
records of Owner that relate to the Project and Abatement terms and conditions (collectively,
the "Records") at any time during the Compliance Auditing Term in order to determine
compliance with this Agreement and to calculate the correct percentage of Abatement
available to Owner. 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 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. This information shall include, but not be limited
to,the number and dollar amounts of all construction contracts and subcontracts awarded on
the Project.
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 1 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
Page 5 of 13
NEZ Tax Abatement with Town Center Mall, L.P., 4200 South Freeway—Pad Site 2A
Approved by M&C C-28690, May 15, 2018
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 Project, 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 or (iii) OWNER DOES NOT
COMPLY WITH CHAPTER 7 AND APPENDIX B OF THE CODE OF ORDINANCE
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 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 there from 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 not be eligible for the Abatement for the remaining Term and 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
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NEZ Tax Abatement with Town Center Mall, L.P., 4200 South Freeway— Pad Site 2A
Approved by M&C C-28690, May 15, 2018
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.
Notwithstanding anything herein to the contrary, damages due under this paragraph shall be the
sole responsibility of Town Center Mall, L.P.
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 Term 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 & Liquor Stores or Package Stores.
a. Owner understands and agrees the City has the right to terminate this
agreement if the Project 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 Project contains or will contain a
liquor store or package store.
5. EFFECT OF SALE OF PREMISES.
Owner may assign this Agreement and all or any portion of the benefits provided hereunder
to Town Center Mall, L.P., or an Affiliate without the consent of the City, provided that (i) prior to
or contemporaneously with the effectiveness of such assignment, Owner provides the City with
written notice of such assignment, which notice shall include the name of the Affiliate and a contact
name, address and telephone number, and (ii) the Affiliate agrees in writing to assume all terms and
conditions of Owner under this Agreement. For purposes of this Agreement, an"Affiliate" means all
entities, incorporated or otherwise, under common control with Owner, controlled by Owner or
controlling Owner. For purposes of this definition, "control" means fifty percent (50%) or more of
the ownership determined by either value or vote. Owner may not otherwise assign this Agreement
or any of the benefits provided hereunder to another party without the consent of the City Council,
which consent shall not unreasonably be withheld or delayed,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 assignee agrees in writing to assume all terms and conditions of
Owner under this Agreement. Any attempted assignment without the City Council's prior written
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.
Page 7 of 13
NEZ Tax Abatement with Town Center Mall, L.P., 4200 South Freeway—Pad Site 2A
Approved by M&C C-28690, May 15, 2018
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 Town Center Mall, L.P.
Attn: City Manager 720 N. Post Oak Rd., Suite 500
200 Texas Street Houston, TX 77024-3835
Fort Worth, TX 76102
and
Neighborhood Services Department
Attn: Director
200 Texas Street
Fort Worth, TX 76102
7. MISCELLANEOUS.
7.1. Bonds.
The Required Improvements will not be financed by tax increment bonds. This
Agreement is subject to 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 of this Agreement and Exhibit"3",the body of
this Agreement shall control.As of May 15,2018,the City is unaware of any conflicts between
this Agreement and the City's zoning ordinance or other ordinances or regulations.
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.
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NEZ Tax Abatement with Town Center Mall, L.P., 4200 South Freeway—Pad Site 2A
Approved by M&C C-28690, May 15, 2018
7.5. City Council Authorization.
This Agreement was authorized by the City Council through approval Mayor and
Council Communication No. C-28690 on May 15,2018,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,
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 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.
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.
Page 9 of 13
NEZ Tax Abatement with Town Center Mall, L.P., 4200 South Freeway—Pad Site 2A
Approved by M&C C-28690, May 15, 2018
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.
(REMAINDER OF PAGE INTENTIONALLY BLANK)
Page 10 of 13
NEZ Tax Abatement with Town Center Mall, L.P., 4200 South Freeway—Pad Site 2A
Approved by M&C C-28690, May 15, 2018
City of Fort Worth
B•y -�y-,�.(r o�-� By:
Fernando Costa Andrew Seg6l, Manager
Assistant City Manager LGP Property, LLC,
Managing Member of Town Center Property, LLC
And General Partner of Town Center Mall, L.P.
ATT T:
By: FORT�2
Mary Kayser
City Secretary
fit•••
APPROVED AS TO FORM AND LEGA Y: •...,•
�XAS
By:
Melinda Ramos
Sr. Assistant City Attorney
M & C: C-28690
Page 11 of 13
NEZ Tax Abatement with Town Center Mall, L.P., 4200 South Freeway-Pad Site 2A
Approved by M&C C-28690, May 15, 2018
STATE OF TEXAS §
COUNTY OF TARRANT §
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.
GI E'EN NDER MY HAND AND SEAL OF OFFICE this 2f� day of
2018.
J` PY....I TRIKINYA L. JOHNSON
Notary Public in for
Notary Public, State of Texas
the State of Texas +r�� Comm. Expires 04-17-2022
"„°;, ` Notary ID 1238832-0
STATE OF TEXAS §
COUNTY OF PW,(i 5 §
BEFORE ME,the undersigned authority, on this day personally appeared Andrew Segal, Manager of LGP
Property, LLC, Managing Member of Town Center Property, LLC and, General Partner of Town Center
Mall, L.P., 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 for LGP Property, LLC, Managing Member of Town Center Property, LLC and,
General Partner of Town Center Mall, L.P.
GI IVE*� UNDER IIAY HAND AND SEAL OF OFFICE this _ `Le day of
1AAan 12018.
a CINDY LOPEZ
ID#125723038
Notary Public in d for My Commission Expires
The State of Texas June 12,2022
Page 12 of 13
NEZ Tax Abatement with Town Center Mall, L.P., 4200 South Freeway—Pad Site 2A
Approved by M&C C-28690, May 15, 2018
Exhibit 1: Property Description
Exhibit 2: Application: (NEZ) Incentives and Tax Abatement
Exhibit 3: Project description
Exhibit 4: Final Construction Invoices (to be attached after construction)
Page 13 of 13
NEZ Tax Abatement with Town Center Mall, L.P., 4200 South Freeway—Pad Site 2A
Approved by M&C C-28690, May 15,2018
Exhibit 1
Property Legal Description
A portion of Block 1, Fort Worth Town Center Addition, an addition to the City of Fort
Worth, Tarrant County, Texas recorded in Volume 388-217, Page 7, of the Plat Records,
Tarrant County, Texas. While there is no metes and bounds description or Lot designation
in the Plat Records for what is referred to in this Agreement as "Pad Site 2A", the Tarrant
Appraisal District has established a separate account for the Premises under Account No.
07913133, and the legal referenced as "FORT WORTH TOWN CENTER ADDN Block 1
Lot A2". This tax parcel shall constitute the Premises for the purposes of this Agreement.
Exhibit 2
FORT WORTH. Application No. 2-1:2— 51
City of Fort Worth
Neighborhood Empowerment Zone(NEZ)Application for Basic Incentives
� `• . . /
Owner.: ! �wm aA k2z-- !Q dLJQ � -
Last
Address:
Straet.4ddress City a Zip
Phone: 2-44Qn 9ZK& FmRih
C:ontait: Amloholl, 5JieJLq "_J
(ff dierew) Last �i M.I.
Pbone: /?— 2 a -$ Co mail: c`_ ?el! j �d 6r l l
,2-
• Infoffnation
NM certifications are project specific.Please describe your project: A -E2v-
re-cU de AC
❑ ❑ C�' ❑ ❑ ❑
SVOe Family Multi-Family Commercial industrial Community FacHitiees Muced-Use
Project Address: - e-V- & 1 f'
Street Adds — J ----
iAgal Deocriptioa:
Lot Block .tddi�tlp+e
"
YES/ NO YBS= No
New Constructionj
/Addition: CJ Q Renwdel l Rehab: ❑
Total KCR S%irL /5, 000 Total Development Coat: T ej_s�3O OLF v -x
WWIN the N1RZ , property be aoea*d by the property owner? Fe ❑ ��
Uyour project la a Whed Use project,please list all specific uses that are being proposed:
Do you wish to apply for a Municipal Property Tax abatement for this project? L❑
N floc above answer is yes,please contact the City of Fort Worth Neighbod ood Services Dcpartmait at
(817)392-7316 or visitht_pt l/fartworthteacaa.govhrei for additional hiib r atimL
YES NO
Do you w'islh to apply for a release of certain City liens? ❑ [�}'
Weed,Paving,Dowlition and Board Up/Open Struclm liens maybe released
For Zoning Office
YES NO
VVM a Zoning Change appOcadoa be toe brit j�tcV
Signature of Zoning Stas��>`� t_ Bim.
kRTWORTH. Application No.
City of Fort Worth
Neigbborbood Empowemient Zone(NEZ)Application for Basic Incentives
Acknowledgements
1 hereby certify that the infbm ation provided is tune and accurate to the best of my knowledge.
I herby aclmowiedge that 1 have read the NEZ Basic Incentives,which g wan 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=jeetion ofan application or tanninstion of incentives at the
discretion of the City.
I understand that the npxoval of fee waivers and other incentives sball not be deemed to be approval of any aspect
of the pv,cct. 1 uundm*and that 1 am n spoTnible for obtaining required permits and inspections from the City and
in ensuring dLe pmjcrt is located in the correct zon*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 wiH not be reimbarsed.T agree to provide any additional
in&xmation for determbdng eligibility as requested by the Chy.
1 underxtaud that if that an(axes duc or liens against any property owned in the City of Fort Worth I may not be
eligible for NIM basic incentives.
1 understand that 1 must pay all associated fees at the,thne of project application arLsllorpe¢'mit subrd"if I wish
ID submit permits prior to determination of NEZ aligibdity.
I understand that some permits may not be issued while NEZ cligibility is being established.
02-rchtlel IA I aa Oki,
Printed N of peri er Sigrn"AM of P Date
:,r,. •..,�j�,'.�s;.'I•.z .Y.. r. !!!.`p��� ,,�,..t�inl�/rr 1.
An electronic version of this form is available on our wcb•ite•For mons inf r mAtion on the NEZ Program for
Basic 17mceniivcs,please visit air web site at or contact our office
at(917)392-2222 or DevNezProgn%m@fortw"Ihtt x- .gov.
For more,information.on Tax Amts,see the above w6W tc or contact Neighborhood Services at
(917)392-7316.
For Planning and Development Wice Use Only
YM NO
Project mrMvd for NEZ Basic Incentives: ❑ ❑ If yes,Certified By:
it not ecrWiicd,reason for denial: _ T
�..owou,R.E
t
Exhibit 3
Project Description
• Interior and exterior remodel of an existing 9,800 square foot building, currently
used as a Universal Wash Laundry Mat.
• Upon completion the building will house multiple tenants for retail use as well as
the space that will remain a Universal Wash Laundry Mat.
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411
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�' 4200 SOUTH FWY, FORT WORTH,TEXAS
---- ➢
Exhibit 4
Final Construction Invoices
Will be provided to City after construction is complete and final Certificate of
Occupancy is issued.
M&C Review
Official
CITY COUNCIL AGENDA FO RTWORTII
COUNCIL ACTION: Approved on 5/15/2018
DATE: 5/15/2018 REFERENCE C-28690 LOG NAME: 194200SOUTHFRWY
NO..
NOW PUBLIC
CODE: C TYPE: CONSENT HEARING:
NO
SUBJECT: Authorize Execution of a Five-Year Tax Abatement Agreement with Town Center Mall,
L.P., for the Construction of a Commercial Retail Building and the Rehabilitation of a
Retail Laundromat Located at 4200 South Freeway in the Hemphill/Berry Neighborhood
Empowerment Zone (COUNCIL DISTRICT 9)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a Five-Year Tax Abatement
Agreement with Town Center Mall, L.P., for the construction of a commercial retail building and the
rehabilitation of a retail Laundromat located at 4200 South Freeway in the Hemphill/Berry
Neighborhood Empowerment Zone, in accordance with the Neighborhood Empowerment Zone
Tax Abatement Policy and Basic Incentives.
DISCUSSION:
Town Center Mall, L.P., (Property Owner) is the owner of the property described as a Tract of land
situated in the J.F. Ellis Survey, Abstract Number 490, and the John Thornhill Survey, Abstract
Number 1519, Tarrant County, Texas, also being a part of that certain tract of land known as Lot
2, Block 1, Fort Worth Town Center and recorded in Cabinet A, Slide 3776, Plat Records, Tarrant
County, Texas at 4200 South Freeway, Fort Worth, Texas. The property is located within the
Hemphill/Berry Neighborhood Empowerment Zone (NEZ).
The Property Owner plans to invest an estimated amount of$3,574,000.00 to construct a retail
building with approximately 15,000 square feet and invest $595,000.00 to rehabilitate an existing
retail laundromat (Project). 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 2020 at
the estimated pre-improvement value, as defined by the Tarrant Appraisal District (TAD) in 2018,
on this pad site so the pre-improvement value for tax abatement purposes on the new construction
will be $0.00. 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
2020 at the estimated pre-improvement value, as defined by the Tarrant Appraisal District (TAD) in
2018, on the retail Laundromat will be as follows:
Pre-Improvement TAD Value of Improvements $308,377.00
F - - - F_
http://apps.cfwnet.org/council_packet/mc_review.asp?IIY25849&councildate=5/15/2018[05/29/2018 6:17:25 PM]
M&C Review
Pre-Improvement Estimated Value of Land $ 91,624.00
Total Pre-Improvement Estimated Value [$400,001.00
The municipal property tax on the improved value of the new retail building Project after
construction is estimated in the amount of$28,771.00 per year for a total amount of$143,855.00
over the five-year period. The municipal property tax on the improved value of the Laundromat
after rehabilitation is $4,790.00 per year for a total amount of$23,950.00 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.
The Tax Abatement Agreements may be assigned to an affiliate of the property owner without the
consent of the City Council. If the property is sold to a new owner, other than an affiliate, the
Agreement may be assigned only with City Council approval and provided that the new owner
meets all of the eligibility criteria as stated in the NEZ Tax Abatement Policy and Basic Incentives.
This property is located in COUNCIL DISTRICT 9.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations approximately
$167,805.00 in property taxes will be abated over the five-year period from 2019-2023. This
revenue loss will be incorporated into the City's five-year financial forecast.
I4
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID Year (Chartfeld 2)
FROM
Fund Department Account Project Program Activity Budget Reference# Amount
L ID I I ID I I Year (Chartfield 2)
Submitted for City Manager's Office bv: Fernando Costa (6122)
Originating Department Head: Aubrey Thagard (8187)
Additional Information Contact: Sarah Odle (7316)
ATTACHMENTS
4200 South Freeway Map for Council W
La Gran 1295 pd
New Retail Center Elevations.pd
Universal Wash Elevations
http://apps.cfwnet.org/council-packet/mc_review.asp?ID=25849&councildate=5/15/2018[05/29/2018 6:17:25 PM]
CERTIFICATE OF INTERESTED PARTIES
FORM 1295
loll
Complete Nos.1.4 and 6 it there are interested parties. OFFICE USE ONLY
Complete Nos.1,2,3,5,and 6 it 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. 2016-1825
Town Center Mail,LP
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 is 01/08/2016
being filed.
City of Fort Worth Date Acknowledged:
01/28/2016
3 Provide the identification number used by the governmental entity or state agency to track or identify the contract,and provide a
description of the services,goods,or other property to be provided under the contract
-4249? ev"Aft4 #- fo
be assrjI►44
^r--•'"t"a� -17ag Abetrome 4- A�reevn
Nature of interest
4
Name of Interested Party City,State,Country(place of business) (check applicable)
Controlling I Intermediary
5 Check only if there is NO Interested Party.
X
6 UNSWORN DECLARATION n
My name is A )ZLO.JZ Y��
.-Ce- ef^ 4-L'tt and my date of birth is
My address is /70 N 605f oak�d #5'00 rlovxAi TX. 77DZV . us
(street) (city) (state) (zip code) (country)
I declare under penalty of perjury that the foregoing is true and correct.
Executed inS County, State of 'e lea s on the 2 C)dray of 20_LL.
(mo (year)
Signature of authorized agent of contracting business entity
(Declarant)
Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.0.33598