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HomeMy WebLinkAboutOrdinance 17382-01-2007ORDINANCE NO. 17382-01-2007 AN ORDINANCE AMENDING ORDINANCE 15815 BY REMOVING CERTAIN PROPERTY FROM NEIGHBORHOOD EMPOWERMENT REINVESTMENT ZONE NUMBER TIiIRTEEN OF THE CITY OF FORT WORT&I, TEXAS; DESIGNATING THE PROPERTY SO REMOVED AS "NEIGHBORHOOD EMPOWERMENT REINVESTMENT ZONE NUMBER TI-IIRTY-TWO, CITY OF FORT WORTH, TEXAS"; PROVIDING THE EFFECTIVE AND EXPIRATION DATES FOR THE ZONE AND A MECHANISM FOR RENEWAL OF TI-IE ZONE; AND CONTAINING OTHER MATTERS RELATED TO THE ZONE. WHEREAS, pursuant to the City Council's adoption on May 17, 2005 of Resolution No. 3207-05-2005 (M&C G-14802}, the City of Fort Worth, Texas (the "City") has elected to be eligible to participate in tax abatezaraent and has established guidelines and criteria governing tax abatement agreements entered into between the City and various third parties, as authorized by and in accordance with the Property Redevelopment and Tax Abatement Act, codified in Chapter 312 of the Texas Tax Code (the "Code"}; and WIEIEREAS, the City Council desires to promote the development of the area in the City more specifically described in Exhibit "A" of this Ordinance (the "Zone") through the creation of a reinvestment zone for purposes of granting residential and commercial-industrial tax abatement, as authorized by and in accordance with. Chapter 3l2 of the Code; and WHEREAS, on January 6, 2004, the City Council adopted Resolution No. 3030 designating the Berry/University Area as a Neighborhood Empowerment Zone (the "NEZ") and adopted Ordinance No. 15815, designating the NEZ as Neighborhood Empowerment Reinvestment Zone Number Thirteen, City of b'art Worth, Texas; and WHEREAS, Progresiva, L.L.C. ("Owner") is the owner of certain real property located in the NEZ and that is more particularly described in Exhibit "A" of this Ordinance {the "Land") on which Owner wishes to renovate the exterior and portions of the interior of a one-story shopping center (the "Improvements"); and WHEREAS, the Code requires that the terms and conditions of tax abatement agreements covering property located in the same reinvestments zone must be identical; and WHEREAS, Owner has requested a 5 year commercial tax abatement era, the Improvements, which, in accordance with the NEZ policy, is subject to unique terms and conditions specific to the project; and WHEREAS, accordingly, the City Council hereby finds that it is necessary and desirable to remove the Land from the Neighborhood Empowerment Reinvestment Zone Na. 13 and to designate a new Neighborhood Empowerment Reinvestment Zone comprising only the Land (the "Zone"); and W>FiEREAS, the City Council hereby finds that the project described herein will be an important element in the revitalization of the Berry/University Drive Area and that the development of the Land and the Zone in the manner described herein will best occur by means of tax abatement on the Improvements in return for Owner's causing construction of the Improvements and compliance with certain other commitments that will foster economic development in the Zone and the City in general; and 2 WHEREAS, on January 23, 2007 the City Council held a public hearing regarding the creation of the Zane, received information concerning the improvements proposed far the Zone and afforded a reasonable opportunity for all interest persons to speak and present evidence for ar against the creation of the Zone ("Public Hearing") as required by Section 312.201(d); and WHEREAS, notice of the Public Hearing was published in a newspaper of general circulation in the City on January 12, 2007 which satisfies the requirement of Section 312.201(d)(1) of the Cade that publication a£ the notice occur not later than the seventh day before the date of the public hearing, and WIFIEREAS, in accordance with Sections 312.201(dj(2) anal (e), notice a£ the Public Hearing was delivered in writing not later than the seventh day before the date of the public hearing to the presiding officer of the governing body of each taxing unit that includes in its boundaries real property that is to be included in the proposed Zone; 1!®W, THEREF®itE, RE TT ®RI~AII@TEI) RY THE CITY C®I31®iCIIj ®F THE CITY ®F F®RT W®RTII, TEXA~.S: Section ~. FINDI1~lGS. That after reviewing all information before it regarding the establishment of the Zane and after conducting the Public Hearing and affording a reasonable opportunity far all interested persons to speak and present evidence for nr against the creation of the Zone, the City Council hereby makes the following findings of fact: 3 ~.1. The statements and facts set Earth in the recitals of this Ordinance are true and correct. Therefore, the City has met the notice and procedural requirements established by the Code for creation of a reinvestment zone under Chapter 312 of the Code; and 1.2. Without a tax abatement on the Improvements, as requested by Owner, construction of the Improvements would not be financially feasible for Owner; 1.3. As a commercial development, the Improvements will cause, among other things and without limitation, (i) retention or expansion of primary employment, (ii) attraction of major investment in the zone that would be a benefit to the Zone, and (iii) existing business in the area to prosper as a result of improved facilities; and ~.~4. The Zone meets the criteria for the designation of a reinvestment zone as set forth in V.T.C.A., Tax Code, Section 312.202, as amended, in that the area is reasonably likely as a result of the designation to contribute to the retention or expansion of primary employment ar to attract major investment in the zone that would be a benefit to the property and that would contribute to the economic development of floe zxzunicipality; and 1.5. The Improvements are feasible and practical and, once completed, will benefit the land included in the Zone as well as the City for a pexiod in excess of ten (10) years, which is the. statutory maximum term of any tax abatement agreement entered into under Chapter 312 of the Cade. 4 Secti©n 2. REMOVAL OF LAND FROIVI NEIGHI34RHOOlD EMPOWERMENT REINVESTMENT ZONE N®. I3 That Ordinance No. I S 81 S is hereby amended by removing the Land, as described in Exhibit "A", from Neighborhood Empowerment Reinvestment Zone Number Thirteen, City of Fort Worth, Texas. Section 3 DESIGNATION OF ZONE. That the City Council hereby designates the Zone described in the boundary description attached hereto as Exhibit "A", as "Neighbaxhaad Empowerment Reinvestment Zone Number Thirty-two, City of Fort Worth, Texas." The project described herein is eligible for commercial development tax abatement pursuant to Section IIIC of the NEZ Policy. Section 4. TERM OF Z®NE. That the Zone shall take effect upon the effective date of this Ordinance and expire five (S) years thereafter. The Zone inay be renewed by the City Council for one or more subsequent terms of five (S) years or less. Section 5. SEVERAI3ILITY. That if any portion, section or part of a section of this Ordinance is subsequently declared invalid, inoperative or void for any reason by a court of competent jurisdiction, the remaining portions, sections ar parts of sections of this Ordinance shall be and 5 remain in full force and effect and shall not in any way be impaired or affected by such decision, opinion or judgment. Seetio~ 6. ~MMEI~~ATE EFFECT That this Ordinance shall take effect upon its adoption. AND IT IS SO ®RDAiNED. ADOPTED AND EIaI~ECTIVE: ~ January 23, 2007 APPROVED AS TO FORM AND LEGALITY: i 1,/I~ ,~ iLeann D. Guzman Assistant City Attorney Date: ~ ~ ~~ ~~~~ M&C: C-21945 1-23-07 6 Exhibit A Fart Worth Neighborhood Empowerment Reinvestment Zane Number Thirty~Two General Description The area to be designated as Fort Worth Neighborhood Empowerment Reinvestment Zone Number Thirty-Two for tax abatement purposes contains 0.2570 acres of land and is described below: 2709 W. Berry Street, Block 10, Lots 1 & 2, Byers & lVlcCart Addition, in the City of Fort Worth, Tarrant County, Texas, according to the Plat recorded in Volume 310, Page 27, Plat Records of Tarrant County, Texas. 7 li~xi-ibit A Prot~ert~ Le~a1 Description 2709 W. Berry Street, Block 10, Lots 1 & 2, Byers & McCart Addition, in the City of 1~ ort Warth, Tarrant County, Texas, according to the Plat recorded in Vol~.une 310, Page 27, Plat Records of Tarrant County, Texas. Exhibit B Proiect Description One-story Retail Shopping Center & Office Space • Replace the facade of the entire building with stucco surface w/EIFS accents • Add a raised roof structure over the westernmost space of the building • Above other spaces add a sealed Spanish Tile true roof to the front of the building • Replace the existing tar and gravel roof with new decking and a new sealed roof system • Remodel the interior of Perez L'amily Dental PA STATE OF TEXAS ~ COUNTY OF TARRANT § Exhibit C TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOl® EMPOWERMENT ZONE 2709 ~V. Berry Street This TAX ABATEMENT AGREEMENT ("Agreerffient") is entered into by and between the CITY OF FORT WORTI~, TEXAS (the "City"), a home rule municipal corporation organized under the laws of the State of Texas and acting by and through Dale A. Fisseler, its duly authorized Assistant City Manager, and Progresiva, L.L.C.., {"Owner") acting by and through Azzah M. Perez, Managing Partner, Owner being the owner of property located at 2709 W. Berry Street, Block 10, Lots 1 & 2, Byers & McCort Addition, in the City of Fort Worth, Tarrant County, Texas, according to the Plat recorded in Volume 310, Page 27, Plat Records of Tarrant County, Texas. The City Council of the City of Fort Worth ("City Conr~eil"} 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 37$ of the Texas Local Government Code allows a municipality to create a neighborhood empowerment zone i£ the municipality determines that the creation of the zone would promote: {1) the creation of affordable housing, including manufactured hauling in the zone; (2) an increase in economic development in the zone; {3} an increase in the quality of social services, education, or public safety provided to residents of the zone; or (4} the rehabilitation of affordable housizzg in the zone. B. Chapter 37$ of the Texas Local Government Code provides float 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 gover~ung 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 October 4, 2005 {M&C G-14947). The October 4, 2005 NEZ lncentives are attached hereto as Exhibit "A" hereby made a part of the Agreement for all puzposes. D. The NEZ Incentives contains appropriate guidelines and criteria governing tax abatement agreements to be entexed into by the City as contemplated by Chapter 312 of the Texas Tax Code, as amended (the "Code"}. E. On January 6, 2004, the Fort Worth City Council adopted Ordinance No. 15815 (the "Qrdiraance"} establishing "Neighborhood Empowerment Reinvestment Zone No.13" City of Fart Worth, Texas (the "Zone") and adopted Resolution No. 3030 establishing "Designation of Berry University Drive Area as a Neighborhood Empowerment Zone" (the "NEZ"}. On January 18, 2007, the City Council adopted Ordinance Na. (the "Ord~nanCC") establishing "Neighborhood Empowerment Reinvestment Zone Na. 32 City of Fort Worth, Texas (the "Z©ne"}. F. Dwner owns certain. real property located entirely within the Zone and that is more particularly described in Exhibit "B", attached hereto and hereby made a part of this Agreement for all purposes (the "1'rernises"). G. Owner or its assigns plan to remodel aone-story shopping center, more particularly described in Section 1.1 of this Agreement, on the Premises {the "Project"). H. On November 17, 2006 Owner submitted an application for tax abatement to the City concerning the Premises (the "~.pplication"), attached hereto as Exhibit "C" and hereby made a part of this Agreement for all purposes. T. 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 Zane 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. d. The terms of this Agreement, and the Premises and Required Improvements, satisfy the eligibility criteria of the NEZ Incentives. I~. 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 presiding officers of the governing bodies of each of the taxing units in which the Premises is located. N®W, THEREFORE, the City and Owner, for and in consideration of the terms and conditions set Earth herein, do hereby contract, covenant and agree as follows: I. OWNEig'S C®~EN~.NTS. 1.1.. Real ProAerty Impra~ements. Owner shall construct, or cause to be constructed, on and within the Premises certain improvements to a one-story shopping center consisting of , {i} reconstruction of exterior and portions of interior of the premises to specifications listed in Exhibit D, and (ii} having a construction cost upon completion of $175,000.00 including site development costs but such minimum construction costs shall be reduced by any construction cost saving (collectively, the "Required ImproveaRnents"). The type, preliminary site plan, conceptual elevation, number and location of the Required Improvements are described in Exhibit "D". The "Required Zmprflvements" shall have an appraised value of $570,000.000 as deterniined by an Independent appraiser. Owner shall provide a copy of the final construction invoices and independent appraisal upon completion of the improvements and the parties agree that such final construction invoices and independent appraisal shall be a part of this Agreement and shall be labeled Exhibit "E". 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 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 "D". 1.2. C©an~ letion I}ate of Re aired l[~;a rovements. Owner covenants to substantially complete construction of all of the Required Improvements within two years from the issuance and receipt of the first building permit, unless delayed because of force majeure, in which case the one-year shall be extended by the number of days comprising the specific farce majeure. For purposes of this Agreement, force majeure shall mean an event beyond Owner's reasonable control, including, without limitation, delays caused by adverse weather, delays in receipt of any required permits or approvals from any governmental authority, or acts of God, fires, strikes, national disasters, wars, riots and material or labor restrictions, and shortages as determined by the City of Fort Worth in its sole discretion, which shall not be unreasonably withheld, but shall not include construction delays caused due to purely financial matters, such as, without limitation, delays in the obtaitung of adequate f nancing. 11.3. Use of Premises. Owner covenants float the Required. Improvements shall be constructed and the Premises shall be continuously used as a retail shopping center and dental office and in accordance with the description of the Project set forth in the Exhibit "D". In addition, Qwner covenants that throughout the Tenn, the Required Improvements shall be operated and maintained far 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. 2. ABATEMENT AN[®UNTS, TERMS ANl3 ~~NI3ITJ1®NS. 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 Abatemenf. The actual amount of the Abatement granted under this Agreement shall be based upon the increase in value of the Premises and the Required Tmprovements aver their values on January 1, 2007, and this amount is $402,830.00, the year in which this Agreement was entered into: One Hundred percent {100%) of the increase in value from the construction of the Required Improvements. If the appraised value of the Itequared Improvements are less than as provided. in ~ectian 1.1 of this Agreement, except that such minimum construction costs shall be reduced by construction cost savings, ®vvner 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 due to construction of the Required Improvements and sha11 not apply to taxes on the land. 2.3. Abatement Limitation. Notwithstanding anything that maybe interpreted to the contrary in this Agreement, Owner's Abatement in any given year shall be based on the increase in value of the Premises over its value on January 1, 2007, including the Required Improvements, up to a maximum of $65,300.00. In ather words, by way of example only, if the increase in value of the Premises over its value on January 1, 2007, including the Required Improvements, in a given year is $670,000.00, Owner's Abatement far that tax year shall be capped and calculated as if the appraised value of the Premises for that year had only been $6ss,3oo.00. 2.4. Protests ®ver A~nraisals or Assessments. Owner shall have the right to protest and contest any or ail appraisals or assessments of the Premises and/or improvements thereon. 2.5. Term.. The term of tlae Abatement {the "TerZn") shall begin on January 1 of the year following the calendar year in which a final certificate of occupancy is issued far the Required Improvements ("Beginning Data"} and, unless sooner terminated as herein provided, shall end on December 31 immediately preceding the fifth (Sty") anniversary of the Beginning Date. 2.6. Abatement A fication Fee. The City acknowledges receipt from Owner of the required Abatement application fee of one half of one percent {.S%) 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. REC®RDS AUDITS AND EVALUAT~~N ®F PROJECT. 3.1. lnsnection oi' Premises. Between the execution date of this Agreement and the Iast 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 Bally 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 Terns. 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 February 1 following the end of every year during floe Compliance Auditing Term and if requested by the City, Owner shall provide information and documentation far 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. dG'ailure 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. l~etermiuatiou of Cam fiance. 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 upon Owner's compliance with the terms and conditions of this Agreement during the previous year of the Compliance Auditing Term. ~. EVENTS OF DEFAUL'T`. 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 xespect to the tangible personal property located on the Premises, become delinquent and Owner does not timely and properly follow the legal procedures for protest andlor contest of any such ad valorem real property or tangible personal property taxes or (iii) OWNER DOES NOT CONTPLY WITH CHAPTER? AND APPENDIX 8 OF 'T`HE CODE OF ORDINANCE OF THE CITY OF FORT WORT)<I {collectively, each an "Event of Default"). 4.2. Notice to Cure. Subject to Section S, 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 ninety {90) 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 one hundred eighty (180) calendar days from the original date of receipt of the wriifien notice, or {ii) if Owner reasonably believes that Owner will require more than one hundred eighty (180) days to cure the Event of Default, after advising the City Council in an open meeting of Owner's efforts and intent io cure, such additional time, if any, as may be offered by the City Council in its sole discretion. 4.3. Tergnination for Evert of Defaul# azzd Pa meat of Li uidated Dama es. If an Event of Default, which is defined in Section 4.1, has not been cured within the time frame specifically allowed under Section ~.2, the City shall have the right to terminate this Agreement immediately. Owner acknowledges and agrees chat an uncured Event of Default will (i) harm the City's economic development and redevelopment ei~orts on the Premises and in the vicinity of the Premises; (ii) require unplanned and expensive additinnal administrative oversight and involvement by the City; a11d (iii) otherwise harm the City, and Owner agrees chat 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 Defauli, 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 aanount may be recovered by the City through adjustnnents 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 {b0) days following the effective date of termination of this Agreement. Tn the event that all ar 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. 4.4. Teraar~inatian at'Vt'ill. If the City and Owner mutually determine that the development or use of the Premises or the anticipated Required Tmprovements are no longer appropriate or feasible, or that a higher ar better use is preferable, the City and Owner may terminate this Agreement in a written format that is signed by both parties. Tn 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 farther rights or obligations hereunder. 4.5. Sexuall oriented Business ~ Li uar Stages ar Packa a Stores. a. Owner understands and agrees the City has the right to terminate this agreement if the Project contains ar 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 ar package store. 5. EFFECT OF SALE ®F PRE1VIiSES. 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 (l0) calendar days of receipt of written notice from the City to Owner. b. 1~4T>~CES. All written notices called for ar 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: City of Fort Warth Attn: City Manager 1000 Throclanarton Fort Worth, TX 76102 and Housing Department Attn: Jerome Walker 1000 Throckmorton part Warth, TX 76102 7. 1Vi1[SCELLAl`1E0~J~. 7,1, Bonds. Owner: Progresiva L.L.C. Attn: Azzah M. Perez 2744 5t~' Ave. Fart Warth, TX 76110 The Required Tmprovements will not be financed by tax increment bonds. This Agreement is subject to rights of holdexs of outstanding bands 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 ar Zoning Commission ar any member of the governing body of any taxing units in the Zone. 7.3. Conflicts Fetween I~ocu~nents. Tn 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 Exhihit "D", the body of this Agreement shall control. As of July 11, 2006, the City is unaware of any conflicts between this Agreement and the City's zoning ordinance or other ordinances or regulations. 7.4. Fulure.A~plcation. A portion or all of the Fremises and/or Required Improvements may be eligible for complete ar partial exemption from ad valorem taxes as a result of existing law ax future legislation. This Agreement shall not be constnzed as evidence that such exemptions da not apply io the Premises and/or Required Improvements. 7.5, City Council Authorization. This Agreement was authorized by the City Council through approval Mayor and Council Corn.rnunicatian No. C~ on January 1S, 200b, which, among other things, authorized the City Manager to execute this Agreement an behalf of the City. 7.G, Eston~ei 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 Orna~er, 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 ar 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 ar any of the underlying laws, ordinances, resolutions, ar City Council actions authorizing this Agreement, and Owner shall be entitled to intervene in any such litigation. 7.~. Venue and .lurisdietivn. 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. Recordation. A certified copy of this Agreement in recordable form shall be recorded in the Deed Records of Tarrant County, Texas. 7,10. Severability. if any provision of this Agreement is held to be invalid, illegal, ox unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected ar impaired. 7.11. Headings 1®Ivt Cvzztrollin~. Headings and titles used in this Agreement are for reference purposes only and shall not be deemed a part of this Agreement. 7.12. Entirety of A~reemeut. 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 irr interest, as to the matters contained herein. Any prior ar 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 arx~ended unless executed in writing by both parties and approved by the City Couneil. This Agreement may be executed in multiple counterparts, each of which shall be considered an origrnai, but all of which sha11 constitute one instrument. EXECUTED this Texas. EXECUTED this day of , 2007, by the City of Fort Worth, day of CITY OF E®RT W®RT~: By: Dale A. FisseTer Assistant City Manager ATTEST: By: City Secretary APPTtQVED AS TO FORM AND LEGALITY: By: Leann. Guzman Assistant City Attorney By: 2007, by Prngressiva L.L.C. Azzah M. T'erez Managing T'artner M&C: STATE OF TEXAS § COUNT'' OF TARItA1~T § BEFORE ME, the undersigned authority, on this day personally appeared Dale A. Fisseier, Assistant City Manager of the CITY OF FORT WORTH, a xxaunicipal corporation, known to me to be the person anal officer whose name is subscribed to the foregoing instruzxaent, and acknowledged to rr~e 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 o~ the City of Fort Worth and that he executed the same as the act of the said City for the purposes anal consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of 2007. Notary Public in and for the State of Texas Notary's Printed Name STATE OF TEXAS § CO~INTY OF TARRAI~T § BEFORE ME, the undersigned authority, on this day personally appeared Azzah M. Perez, 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 and as the act-and deed of Progresiva L.L.C. GIVEN UNDER MY HAND AND SEAL OP OPpICE this day of . ~oa~. Notary Public in and for The State of Texas Notary's Printed Name Exhibit A: NEZ Incentives Exhibit B: Property Description Exhibit C: Application: (NEZ) Incentives and Tax Abatement Exhibit D: Froject description including kind, number, and location of the proposed improvements. Exhibit E. Final Construction Invoices and Independent Appraisal Cif of F®r~ ~h, T'e~as r r ~ i i COUNCIL ACTION: Approved on 1!23!2007 -Ordinance No. 17382-01-2007 DATE: Tuesday, January 28, 2007 I-®G NAME: 05PEREZ REFERENCE NO.: C-21945 SUBJECT: Adopt Ordinance to Designate Fort Worth Neighborhood Empowerment Reinvestment Zone Number 32 and Autharize Entering into a Tax Abatement Agreement with Progresiva L.L.C., for Property Located at 2709 West Berry Street in the BerrylUniversity Neighborhaad Empowerment Zone RECOMIVIENDATION: It is recommended that the City Council: 1. Hold a public hearing concerning the designation of 0.2870 acres of land as described in Exhibit "A" as Fort Worth Neighborhood Empowerment Reinvestment Zone (FWNERZ) Number 32; 2. Adapt fhe attached ordinance to designate the area as 1=WNERZ Number 32 pursuant to the Texas Property Redevelopment and Tax Abatement Act, Tax Cade, Chapter 312; 3. Find that the statements set Earth in the recitals of the attached Tax Abatement Agreement {the Agreement) with Progresiva L.L.C., are true and correct; 4. Approve afive-year Municipal Property Tax Abatement far a property located at 2709 West Berry Street in the BerrylUniversity Neighborhaad Empowerment Zone (NEZ) owned by Progresiva L.L.C.; and 5. Autharize the City Manager to enter into the Tax Abatement Agreement with Progresiva L.L.C., far the property located at 2709 West Berry Street in the BerrylUniversity NEZ in accordance with the NEZ Tax Abatement Policy and NEZ Basic Incentives, as amended. DISCUSSION. Chapter 378 of the Texas Local Government Code provides that a municipality can offer an abatement of municipal property taxes for properties located in a Neighborhood I~mpnwerment Zone. Progresiva L.L.C. is the owner of the property located at 2709 West Berry Street .The property is located in the BerrylUniversity NEZ. Progresiva L.L.C. applied far afive-year municipal property tax abatement under the NEZ Tax Abatement Policy and Basic Incentive (M&C Gµ14947, as amended). The Hauling Department reviewed fhe application and certified that the property met the eligibility criteria to receive NEZ municipal property tax abatement. The NEZ Basic Incentive includes afive-year municipal property tax abatement on the increased value of improvements to the qualified owner of any new construction or rehabilitation within the NEZ. Progresiva L.L.C. will invest, at a minimum, $176,000.00 to remodel the facade of fhe building and to remodel and expand the existing dental office. The project is further described Lognazxre: QSPEREZ t'age 1 of 2 in Exhibit "B" City staff recommends that City Council designate the 0.2870 acres of [and (2709 West Berry Street}, more particularly described in the attached ordinance as FWNERZ Number 32, so that the City can enter into a tax abatement agreement under the guidelines set forth in the Tax Code and the NEZ Tax Abatement Policy and Basic Incentive. The form of the tax abatement agreement is attached as Exhibit "C" TAX ABATEMENT TERMS Upon execution of the agreement, the total assessed value of the improvement used for calculating municipal property tax will be frozen far a period of five years, starting on January 1, 2008, at the estimated pre-improvement value as defined by the Tarrant Appraisal District (TAD} on January 1, 2007, for the property as follows: Pre-improvement TAD Value of Improvements $402,830.00 Pre-improvement Estimated Value of Land $250,000.00 Total Pre-improvement Estimated Value $552,830.00 The municipal property tax on the improved value of the property is estimated at $1,277.00 per year for a total of $5,385.50 over afive-year period. However, this estimate may differ from the actual tax abatement value, which will be calculated based on the TAD appraisal value of the property. In the event of a sale of the property, the agreement may be assigned, with City Council appraval, to the new owners}, so long as the new owners} meets all of the eligibility criteria as stated in the NEZ Tax Abatement Policy and Basic Incentives. As required by Chapter 312 of the Texas Tax Code, a public hearing must be conducted regarding the creation of the Zone. Notice of this hearing was (1) delivered to the governing body of each affected taxing unit and (2) published in a newspaper of general circulation at least seven days prior to this hearing. The prnpased area meets the criteria for the designation of a reinvestment zone contained in Chapter 312 of the Tax Code. As a result of the designation, the area will contribute to the retention or expansion of primary employment and attract major investment in the zone that would be a benefit to the property and contribute to the economic development of the municipality. Further, future improvements in the zone will benefit the City, after any Tax Abatement Agreements that may be entered into have expired. The proposed FWNERZ Number 32 expires after five years and may be renewed for periods not to exceed flue years. This property is located in COUNCIL DISTRICT 9. FISCAL INFORMATIONICERTIFICATIt]N: The Finance Director certifies that this action will have no material effect on city funds. TO FundlAccountlCenters FROM FundlAccou€~tlCenters Submitted for City Mara eg_ isOffice b Dale 1=isseler {6140} Originatin_.g Department Head: Jerome Walker {7537) Additional Information Contact: Sarah Odle {73`16) Lognarne: OSPEREZ Page 2 of 2