HomeMy WebLinkAboutContract 35127�i i Y �EC�E���V Ioc-
�ONTRACT NO.
STATE OF TEXAS §
COUNTY OF TARRANT §
TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A
NEIGHBORHOOD EMPOWERMENT ZONE
3109 Avenue I
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 Dale
Fisseler, its duly authorized Assistant City Manager, and Pedro Ledezma and Ofelia Ledezma
("Owner"), owners of property located at 3109 Avenue I, Block 56 Lots East'/2 of lot 10 and all
of lot 1 l, Polytechnic Heights Addition, in the City of Fort Worth, Tarrant County, Texas, and as
shown on the Plat recorded on Page 109, Volume 63, 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
Neighborhood Empowerment Zone (NEZ) if the municipality determines that the
creation of the zone would promote:
(1) The creation of affordable housing, including manufactured housing 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 housing in the zone.
B. Chapter 378 of the Texas Local Government Code provides that a municipality that
creates a NEZ, may enter into agreements abating municipal property taxes on
property in the zone.
C. On July 31, 2001, the City adopted basic incentives for property owners who own
property located in a NEZ, 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 "NEZ
Basic Incentives" ("NEZ Incentives"), these are readopted October 4, 2005 (M&C
G-14947). The October 4, 2005 NEZ Incentives are attached hereto as E�ibit "A"
hereby made a part of the Agreement for all purposes. -
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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 November 26, 2002, the City Council adopted Ordinance No. 15344 (the
"Ordinance") establishing "Neighborhood Empowerment Reinvestment Zone No.
6," City of Fort Worth, Texas (the "Zone").
F. Owner owns certain real property located entirely within the Polytechnic/Wesleyan
NEZ and that is more particularly described in E�-iibit "B", attached hereto and
hereby made a part of this Agreement for all purposes (the "Premises"),
G. Owner or its assigns plan to construct the Required Improvements, as defined in
Section 1.1 of this Agreement, on the Premises to be used as a single-family
residence that will be Owner occupied (the "Project").
H. On April 26, 2006, Owner submitted an application for NEZ incentives and for tax
abatement to the City concerning the contemplated use of the Premises (the
"Application"), attached hereto as E�ibit "C" and hereby made a part of this
Agreement for all purposes.
L The City Council finds that 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, 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.
NOW, THEREFORE, the City and Owner, for and in consideration of the terms and
conditions set forth herein, do hereby contract, covenant and agree as follows:
1. OWNER'S COVENANTS.
1.1. Real Property Improvements.
Owner shall construct, or cause to be constructed, on and within the Premises
certain improvements consisting of a single-family residence (collectively, the
"Required Improvements"), (i) of at least 1900 square feet in size and built to the
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specifications listed in Exhibit "D" and (ii) having an appraised value of at least
$50,000.00 as determined by an independent appraiser (collectively the "Required
Improvements"). Owner shall provide a survey of the completed home once completed.
The parties agree that the final survey 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 parties to this Agreement before construction is undertaken, in the
Required Improvements from the description provided in the Application for Tax
Abatement shall not constitute an Event of Default, as defined in Section 4.1, provided
that the conditions in the first sentence of this Section 1.1 are met and the Required
Improvements are used for the purposes and in the manner described in Exhibit "D".
1.2. Completion Date of Required Imurovements.
Owner certifies that the Required Improvements will be completed within two
years from the issuance and receipt of the building permit, unless delayed because of force
majeure, in which case the two years shall be extended by the number of days comprising
the specific force majeure. For purposes of this Agreement, force majeure shall mean an
event beyond Owner's reasonable control, including, without limitation, delays caused by
adverse weather, delays in receipt of any required permits or approvals from any
governrnental authority, or acts of God, fires 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
obtaining of adequate financing.
1.3. Use of Premises.
Owner covenants that the Premises and the Required Improvements shall be used
as the Owner's primary residence and in accordance with the NEZ Incentives. In
addition, Owner covenants that throughout the Term, the Required Improvements shall
be maintained for the purposes set forth in this Agreement.
2. ABATEMENT AMOUNTS, TERMS AND CONDITIONS.
Subject to and in accordance with this Agreement, the City hereby grants to Owner a real
property tax abatement 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 Premises, the Required Improvements, over their values
on January 1, 2006, the year in which both parties executed this Agreement. The
Abatement shall be 100% of the increase in value from the construction of the Required
Improvements.
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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, 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
due to construction of the Required Improvements and shall not apply to taxes on the
Land
2.3. Terms of Abatements.
The term of the Abatement (the "Term") shall begin on January 1 of the year
following the calendar year in which the Required Improvement is completed and, unless
sooner terminated as herein provided, shall end on December 31 immediately preceding
the fifth (5`h) anniversary of the Beginning Date.
2.4 Protests Over A�praisals or Assessments.
Owner shall have the right to protest and contest any or all appraisals or
assessments of the Premises and/or improvements thereon.
2.5. Abatement Application Fee.
The City acknowledges receipt from Owner of the required Application fee of
$125.00. 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, 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. Certification.
Owner shall certify annually to the City that it is in compliance with each applicable
term of this agreement. The City shall have the right to audit at the City's expense the
Required Improvement with respects to the speciiications listed in Exhibit D. Owner must
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provide documentation that Owner is using the Required Improvements as its primary
residence (collectively, the "Records") at any time during the Compliance Auditing Term
in order to determine compliance with this Agreement. Owner shall make all applicable
Records available to the City on the Premises or at another location in the City following
reasonable advance notice by the City and shall otherwise cooperate fully with the City
during any audit.
3.3 Provision of Information.
On or before February 1 following the end of every year during the Compliance
Auditing Term and if requested by the City, Owner shall provide information and
docutnentation for the previous year that addresses Owner's compliance with each of the
terms and conditions of this Agreement for that calendar year.
Failure to provide all information within the control of Owner required by this
Section 3.3 shall constitute an Event of Default, as defined in Section 4.1.
3.4 Determination of Comnliance.
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.
4. EVENTS OF DEFAULT.
4.1. DeGned.
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 properiy or tangible personal property taxes or
(iii) OWNER DOES NOT USE THE PREMISES AS PRIMARY RESIDENCE
ONCE THE ABATEMENT BEGINS (iv) 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").
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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 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 written 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 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 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 4.2, the City shall have the right to
terminate this Agreement immediately. Owner acknowledges and agrees that an uncured
Event of Default will (i) harm the City's economic development and redevelopment
efforts on the Premises and in the vicinity of the Premises; (ii) require unplanned and
expensive additional administrative oversight and involvement by the City; and (iii)
otherwise harm the City, and Owner agrees that the amounts of actual damages therefrom
are speculative in nature and will be difficult or impossible to ascertain. Therefore, upon
termination of this Agreement for any Event of Default, Owner shall pay the City, as
liquidated damages, all taxes that were abated in accordance with this Agreement for
each year when an Event of Default existed and which otherwise would have been paid to
the City in the absence of this Agreement. The City and Owner agree that this amount is
a reasonable approximation of actual damages that the City will incur as a result of an
uncured Event of Default and that this Section 4.3 is intended to provide the City with
compensation for actual damages and is not a penalty. This amount may be recovered by
the City through adjustments made to Owner's ad valorem property tax appraisal by the
appraisal district that has jurisdiction over the Premises. Otherwise, this amount shall be
due, owing and paid to the City within sixty (60) days following the effective date of
termination of this Agreement. In the event that all or any portion of this amount is not
paid to the City within sixty (60) days following the effective date of termination of this
Agreement, Owner shall also be liable for all penalties and interest on any outstanding
amount at the statutory rate for delinquent taxes, as determined by the Code at the time of
the payment of such penalties and interest (currently, Section 33.01 of the Code).
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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 Packa�e 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.
Except for an assignment to Owner's first mortgagee or to a homebuyer who will use the
Required Improvements as its primary residence or the homeowner's mortgagee which City
Council hereby agrees to, the Abatement granted hereunder shall vest only in Owner, however if
Owner sells the Premises and Required Improvements, this Abatement cannot be assigned to a new
owner of all or any portion of the Premises and/or Required Improvements without the prior
consent of the City Council, which consent shall not be unreasonably withheld provided that (i) the
City Council finds that the proposed assignee is financially capable of ineeting the terms and
conditions of this Agreement and (ii) the proposed purchaser agrees in writing to assume all terms
and conditions of Owner under this Agreement. Owner may not otherwise assign, lease or convey
any of its rights under this Agreement. Any attempted assignment without the City Council's prior
consent shall constitute grounds for termination of this Agreement and the Abatement granted
hereunder following ten (10) calendar days of receipt of written notice from the City to Owner.
Upon assignment to Owner's first mortgagee, or to a homebuyer who will use the Required
Improvements as its primary residence or the homeowner's mortgagee, Owner shall have no
further obligations or duties under this agreement. In addition, upon assignment to any other
entity with the written consent of City Council, Owner shall have no further duty or
obligation under this agreement.
IN NO EVENT SHALL THE TERM OF THIS AGREEMENT BE EXTENDED IN THE
EVENT OF A SALE OR ASSIGNMENT. �
THE FAILURE OF OWNER TO SEND THE CITY NOTIFICATION OF THE SALE OF
THE REQUIRED IMPROVEMENTS AND EXECUTION OF THE ASSIGNMENT OF
THIS AGREEMENT WITH THE NEW OWNER WITHIN 30 DAYS OF THE TRANSFER
OF OWNERSHIP OF THE REQUIRED IMPROVEMENTS SHALL RESULT IN THE
AUTOMATIC TERMINATION OF THIS AGREEMENT. THE NOTICE AND
EXECUTED ASSIGNMENT MUST BE SENT TO THE CITY BY CERTIFIED MAIL OR
BY HAND DELIVERY.
6. NOTICES.
All written notices called for or required by this Agreement shall be addressed to the
following, or such other party or address as either party designates in writing, by certified mail,
postage prepaid, or by hand delivery:
City:
City of Fort Worth
Attn: Housing Department
1000 Throckmorton
Fort Worth, TX 76102
And
Housing Department
Director
1000 Throckmorton
Fort Worth, Texas 76102
7. MISCELLANEOUS.
Owner:
Pedro & Ofelia Ledezma
3109 Avenue I
Fort Worth, TX 76105
7.1. Bonds
The Required Improvements will not be financed by tax increment bonds. This
Agreement is subject to the rights of holders of outstanding bonds of the City.
7.2. Conflicts of Interest.
Neither the Premises nor any of the Required Improvements covered by this
Agreement are owned or leased by any member of the City Council, any member of the
City Plan or Zoning Commission or any member of the goveming 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 "C", the body
of this Agreement shall control.
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7.4. Future Application.
A portion or all of the Premises and/or Required Improvements may be eligible
for complete or partial exemption from ad valorem taxes as a result of existing law or
future legislation. This Agreement shall not be construed as evidence that such
exemptions do not apply to the Premises and/or Required Improvements.
7.5. City Council Authorization.
This Agreement was authorized by the City Council through approval of Mayor
and Council Communication No. C-21491 on June 6, 2006, which, among other things,
authorized the City Manager to execute this Agreement on behalf of the City.
7.6. Estoppel Certiiicate.
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 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 or unenforceable,
the validity, legality and enforceability of the remaining provisions shall not in any way
be affected or impaired.
7.11 Headin�s Not Controllin�.
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�reement.
This Agreement, including any exhibits attached hereto and any documents
incorporated herein by reference, contains the entire understanding and agreement
between the City and Owner, their assigns and successors in interest, as to the matters
contained herein. Any prior or contemporaneous oral or written agreement is hereby
declared null and void to the extent in conflict with any provision of this Agreement.
This Agreement shall not be amended unless executed in writing by both parties and
approved by the City Council. This Agreement may be executed in multiple
counterparts, each of which shall be considered an original, but all of which shall
constitute one instrument.
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EXECUTED this C�,,�_' day of �^��1W 'L. , 200�, by the City of Fort Worth,
Texas. �
EXECUTED this � day of �' , 200C'�j, by Pedro Ledezma.
EXECUTED this �oZ� y of ,�� ��, �, 200�, by Ofelia Ledezma.
CITY OF FORT WORTH: �
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BY� �" ,.
Dale isseler `
Assistant City Manager
ATTEST:
By:
City Secretary
APPROVED AS TO FORM AND LEGALITY:
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By: � ('��'� �� ��'' `1;��������f�
Leann Guzman ` �
Assistant City Attorney
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OWNER:
By: �' �� �
Pedro Ledezma
Owner
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By: ;, �
Of lia Ledezma
Owner
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STATE OF TEXAS
COUNTY OF TARRANT
BEFORE ME, the undersigned authority, on this day personally appeared Dale Fisseler,
Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation, known to me to
be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged
to me that the same was the act of the said CITY OF FORT WORTH, TEXAS, a municipal
corporation, that he was duly authorized to perform the same by appropriate resolution of the City
Council of the City of Fort Worth and that he executed the same as the act of the said City for the
purposes and consideration therein expressed and in the capacity therein stated.
�, _-� � GIVEN � UNDER MY HAND AND SEAL OF OFFICE
�G d �� u���� . , zoo� ..
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Notary Public in and for
the State of Texas
ANA L. BRISEtJO
. �
'c, 51ato of Texas
Notary's Printed Name ,� , My Commissiun fxpi�es
� March 07, 2011
this -� � Uiday of
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Pedro Ledezma, 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. n
`�LL''
GIVEN tTNDER MY HAND AND SEAL OF OFFICE this Io� day of
, 200�
Notary Public in a or
the State of Texas
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Notary's Pri ' ��e Mv coMr,�iss�or, Fr,�i�,�s
��' '�' Novern�er 5; 2CJ7
'T�,4 i,��
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Ofelia Ledezma, known
to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to
me that he executed the same for the purposes and consideration therein expressed, in the capacity
therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this lo2�y of
� , 200 .
Notary Public in an f
the State of Texas
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Exhibit A: NEZ Incentives
Exhibit B: Property Description
Exhibit C: Application: (NEZ) Incentives and Tax Abatement
Exhibit D: Project description including kind, number and location of the proposed
improvements.
Exhibit E: Final Survey
Fxhibit "A"
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) TAX ABATEMENT POLICY AND BASIC
INCENTIVES
I. GENERAL PURPOSE AND OBJECTIVES
Chapter 378 of the Texas Local Government Code allows a municipality to create a
Neighborhood Empowerment Zone (NEZ) when a"... municipality determines that the creation
of the zone would promote: �
(1) the creation of affordable housing, including manufactured housing, in the zone;
(2) an increase in economic development in the zone;
(3) an increase in the quality of social services, educaiion, or public safety provided to
residents of the zone; or .
(4) the rehabilitation of affordable housing in the zone.°
The City, by adopting the following NEZ Tax Abatement Policy and Basic Incentives, will
promote affordable housing and economic development in Neighborhood Empowerment Zones.
NEZ incentives will not be granfed after the NEZ expires as defined in the resolution designating
the NEZ. For each NEZ, the City Council may approve additional terms and incentives as
permitted by Chapter 378 of the Texas Local Govemment Code or by City Council resolution.
However, any tax abatement awarded before the expiration of a NEZ shall carry its full term
according to its tax abatement agreement approved by the City Council.
As mandated by state law, the property tax abatement under this policy applies to the owners of
real proper[y. Nothing in the policy shall be construed as an obligation by the City of Fort Worth
to approve any tax abatement application.
II. DEFINITIONS
°Abatement" means the full or partial exemption from City of Fort Worth ad valorem taxes on
eligible properties for a period of up to 10 years and an amount of up to 100% of the increase in
appraised value (as reflected on the certified tax roll of the appropriate eounty appraisal district)
resulting from improvements begun after the execution of the tax abatement agreement.
Eligible properties must be located in the NEZ.
"Base Value" is the value of the property, excluding land, as determined by the Tarrant County
Appraisal District, during ihe year rehabilitation occurs.
"Building Standards Commission" is the commission created under Sec. 7-77, Article IV.
Minimum Building Standards Code of the Fort Worth City Code.
RCapifal InvestmenY' includes only real property improvements such as new facilities and
structures, site improvements, facility expansion, and facility modernization. Capital Investment
does NOT include land acquisition costs and/or any existing improvements, or personal property
(such as machinery, equipment, and/or supplies and inventory).
nCily of Forf Worfh Ta�c Abatement Policy Sfatemenfn means the poficy adopted by City Council
on February 29, 2000.
uCommerciaUlndustria! Developmenf Project� is a development project which proposes to
construct or rehabilitate commerciaUndustrial facilities on property that is (or meets the
requirements to be) zoned commercial, industrial or mixed use as defined by the City of Fort
Worth Zoning Ordinance.
"Community Facility Development ProjecY' is a development project which proposes to construct
or rehabifitate community facilities on property that allows such use as defined by the City of
Fort Worth Zoning Ordinance.
"Eligible Rehabilitation"
Rehabilitation does NOT
and/or supplies).
includes only physical improvements to real property. Eligible
include personal property (such as furniture, appliances, equipment,
�Gross Floor Area" is measured by taking the outside dimensions of the building at each floor
level, except that portion of the basement used only for utilities or storage, and any areas within
the building used for off-street parking.
"Minimum Building Standards Code" is Article IV of the Fort Worth City Code adopted pursuant
to Texas Local Government Code, Chapters 54 and 214.
�Minority Business E'nferprise (MBE)" and QWomen Business Enterprise (WBE)n is a minorify or
woman owned business that has received certification as either a certified MBE or certified
WBE by eiiher the North Texas Regional Certification Agency (NTRCA) or the Texas
Department of Transportation (TxDot), Highway Di�ision.
"Mixed-Use Development Project" is a development project which proposes to construct or
rehabilitate mixed-use facifities in which residential uses constitute 20 percent or more of the
total gross floor area, and office, eating and entertainment, and/or retail sales and service uses
constitute 10 percent or more of the tofal gross floor area and is on property that is (or meets
the requirements to be) zoned mixed-use as described by the City of Fort Worth Zoning
Ordinance.
"Mulii-family Development Project" is a development project which proposes to construct or
rehabifitate multi-family residential living units on property that is (or meets the requirements to
be) zoned multi-family or mixed use as defined by the Ciiy of Fort Worth Zoning Ordinance.
"ProjecY' means a "Residential Project'; "Commercial/Industrial Developmenf
Project ;"Community Facifity Development Projecf'; "Mixed-Use Development Project'; or a
"Multi-family Development Projeci."
"Reinvestrnent Zone" is an area designated as such by the City of Fort Worth in accordance
with the Property Redevelopment and Tax Abatement Act codified in Chapter 312 of the Texas
Tax Code, or an area designated as an enterprise zohe pursuant to the Texas Enterprise Zone
Act, codified in Chapter 2303 of the Texas Government Code.
Iil. MUNICIPAL PROPERTY TAX ABATEMENTS
A. RESIDENTIAL PROPERTIES LOCATED IN A NEZ- FULL ABATEMENT FOR 5
YEARS
1. For residential property purchased before NEZ designation, a homeowner shall be
eligible to apply for a tax abatement by meeting the following:
a. Property is owner-occupied and the primary residence of the homeowner prior to
the final NEZ designation. Homeowner shall provide proof of ownership by a
warranty deed, affidavit of heirship, or a probated will, and shall show proof of
primary residence by hor�estead exemption; and
b. Property is rehabilitated after NEZ designation and City Council approval of the
tax abatement.
c. Homeowner must perform Eligible Rehabilitation on the property after NEZ
designation equal to or in excess of 30% of the Base Value of the property; and
�d. Property is not in a tax-delinquent status when the abatement application is
submifted.
2. For residential property purchased after NEZ designation, a homeowner shall be
e(igible to apply for a tax abatement by meeting the following:
a. Property is constructed or rehabilitated after NEZ designation and City Council
approval of the tax abatement;
b. Property is owner-occupied and is the primary residence of the homeowner.
Homeowner shall provide proof of ownership by a warranty deed, affidavit of
heirship, or a probated will, and shall show proof of primary residence by
homestead exemption;
c, For rehabilitated property, Eligible Rehabilitation costs on the property shall be
equal to or in excess of 30% of the Base Value of the property. The seller or
owner shall provide the City information to support rehabilitation costs;
d. Property is not in a tax-delinquent status when the abatement application is
submitted; and
e. Property is in conformance with the City of Fort Worth Zoning Ordinance.
3. For investor owned single family property, an investor shall be eligible to apply for a
tax abatement by meeting the following:
a. Property is constructed or rehabilitated after NEZ designation and City Council
approval of the tax abatement;
b. For rehabilitated property, Eligible Rehabilitation costs on the property shall be
equal to or in excess of 30% of the Base Value of the property;
c. Property is not in a tax-delinquent status when the abatement application is
submitted; and
d. Property is in conformance with the Ciiy of Fort Worth Zoning Ordinance.
B. MULTI-FAMILY DEVELOPMENT PROJECTS LOCATED IN A NEZ
1. 100% Abatement for 5 years.
If an applicant applies for a tax abatement aqreement with a term of five years or
less this section shall apply.
Abatements for multi-family development projects for up to 5 years are subject to
City Council approval. The applicant may apply with the Housing Department for
such abatement.
The applicant must apply for the tax abaiement and be approved by Ciiy Council
before construction or rehabilitation is started.
In order to be eligible for a property tax abatement upon completion, a newly
constructed or rehabilitafed multi-family development project in a NEZ must satisfy
the following:
At least twenty percent (20%) of the total units constructed or rehabifitated shall
be affordable (as defined by the U. S. Department of Housing and Urban
Development) to persans with incomes at or below eighty percent (80%) of area
median income based on family size and such units shall be set aside for
persons at or below 80% of the median income as defined by the U.S.
Department of Housing and Urban Development. City Council may waive or
reduce the 20% affordabilify requirement on a case-by-case basis; and
(a) For a multi-family development project constructed after NEZ designation, the
project must provide at least five (5) residential living units OR have a
minimum Capital Investment of $200,000; or
(b) For a rehabilitation projecf, the property must be rehabilitated after NEZ
designation. Eligible Rehabilitation costs on the properLy shall be at least
30% of the Base Value of the properly. Such Eligible Rehabilitation costs
must come from the rehabifitation of at least five (5) residential living units or
a minimum Capital Investment of $200,000.
2. 1%-100°/a Abatement of Citv Ad Valorem taxes up to 10 vears
If an applicant applies for a tax abatement aQreement with a term of more than five
vears,�this section shall apply.
Abafements for multi-family development projects for up to 10 years are subject to
City Council approval. The applicant may apply with the Housing Department for
such abatement.
The applicant must apply for the tax abatement and be approved by City Council
before construction or rehabilitation is started.
Years 1 throuqh 5 of the Tax Abatement Aqreement
Multi-family projects shall be eligible for 100% abatement of City ad valorem taxes
for years one through five of tF�e Tax Abatement Agreement upon the satisfaction of
the following:
At least twenty percent (20%) of the iotal units constructed or rehabilitated shall
be affordable (as defined by the U. S. Department of Housing and Urban
Development) to persons with incomes at or below eighty percent (80%) of area
median income based on family size and such uniis shall be set aside for
persons at or below 80% of the median income as defined by the U.S.
Department of Housing and Urban Development. City Council may waive or
reduce the 20% affordability requirement on a case-by-case basis; and
a. For a multi-family development project constructed after NEZ designation, tfie
project must provide at least five (5) resideniial living units OR have a
minimum Capital Investment of $200,000; or
b. For a rehabilitation project, the property must be rehabilitated after NEZ
designation. Eligible Rehabilitation costs on the property shall be at least
30% of the Base Value of the property. Such Eligible Rehabilitation costs
must come from ihe rehabilitation of at least five (5) residential living units or
a minimum Capital Investment of $200,000.
Years 6 throuqh 10 of the Tax Abatement Aqreement
Multi-family projects shall be eligible for a 1%-100% abatement of City ad valorem
taxes for years six through ten af the Tax Abatement Agreement upon the
satisfaction of the following:
a. At least twenty percent (20%) of the total units constructed or rehabilitated shall
be affordable (as defined by the U. S. Department of Housing and Urban
Development) to persons with incomes at or befow eighty percent (80°/a) of area
median income based on family size and such units shall be set aside for
persons at or below 80% of the median income as defined by the U.S.
Department of Housing and Urban Deve{opment. City Council may waive or
reduce the 20% affordabilify requirement on a case-by-case basis; and
1. For a multi-family development project consiructed after NEZ designation, the
project must provide ai least five (5) residential fiving units OR have a
minimum Capital Investment of $200,000; or
2. For a rehabilitation project, the property must be rehabilitated after NEZ
designation. Eligible Rehabilitation costs vn the property shall be at least
30% of the Base Value of the properfy. Such Eligible Rehabilitation costs
must come from the rehabilitation of at least five (5) residential living units or
a minimum Capital Investment of $200,000.
b. Any other terms as City Council of the City of Fort Worth deems appropriate,
including, but not limited to:
1. utilization of Fort Worth companies for an agreed upon percentage of the total
costs for construction contracts;
2. utilization of certified minority and women owned business enterprises for an
agreed upon percentage of the total costs for construction contracts;
3. property inspection;
4. commit to hire an agreed upon percentage of Fort Worth residents
5. commit to hire an agreed upon percentage of Central City residents
6. landscaping;
7. tenant selection plans; and
8. management plans.
C. COMMERCIAL, INDUSTRIAL AND COMMUNITY FACILITIES DEVELOPMENT
PROJECTS LOCATED IN A NEZ
1. 100% Abatement of Citv Ad Valorem taxes for 5 vears
lf an applicant applies for a tax abatement aqreement with a term of five vears or
less this section shall applv.
Abatements for Commercial, Industrial and Community Facilities Developmeni
Projects for up to 5 years are subject to City Council approval. The applicant may
apply with the Housing Department for such abatement.
The applicant must apply for the tax abatement and be approved by City Council
before construction or rehabifitation is started.
In order to be eligible for a property tax abatement, a newly constructed or
rehabiliiated commercial/industrial and community facilities development project in a
NEZ must satisfy the following:
a. A commercial, industrial or a communiiy faciliiies development project
constructed after NEZ designation must have a minimum Capital Investment of
$75,000; or
b. For a rehabifitation project, it must be rehabilitated after NEZ designation. Eligible
Rehabilitation costs on the property shall be at least 30% of the Base Value of
the property, or $75,000, whichever is greater.
2. 1%-100% Abatement of Citv Ad Valorem taxes up to 10 vears
If an applicant appfies for a tax abatement aqreement with a term of more than five
vears this section shall applV.
Abatements agreements for a Commercial, Industrial and Community Facilities
Development projects for up to 10 years are subject to City Council approval. The
applicant may apply with the Economic and Community Developmeni Department for
such abatement.
The applicant must apply for the tax abatement and be approved by City Council
before construction or rehabilitation is started.
Years 1 throuqh 5 of the Tax Abatement Aqreement
Commercial, Industrial and Community Facilities Development projects shall be
eligible for 100% abatement of City ad valorem taxes for the first five years of the
Tax Abatement Agreement upon the satisfaction of the following:
a. A commercial, industrial or a community facili�ies development project
constructed after NEZ designafion must have a minimum Capital Investment of
$75,000; or
b. For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible
Rehabilitation costs on the property shall be at least 30% of the Base Value of
the property, or $75,000, whichever is greater.
Years 6 throu�h 10 of the Tax Abatement Aqreement
Commercial, Industrial and Community Facilities Development projecis shall be
efigible for 1%-100% abatement of City ad valorem taxes for years six through ten of
the Tax Abatement Agreement upon the satisfaction of the following:
a
�
c.
A commercial, industrial or a community facilities development project
constructed after NEZ designation must have a minimum Capital
Investment of $75,000 and must meet the requirements of subsecfion (c)
below ; or
For a rehabilitation project, it must be rehabifitated after NEZ designation.
Eligible Rehabilitation costs on the property shall be at least 30% of the
Base Value of the property, or $75,000, whichever is greater and meet
the requirements of subsection (c) below.
Any ather terms as City Council of the City of Fort Worth deems
appropriate, including, but not limited to:
1. utilizaiion of Fort Worth companies for an agreed upon percentage of
the total costs for construction contracts;
2. utifization of certified minority and women owned business enterprises
for an agr�ed upon percentage of the total costs for construction
contracts;
3. commit to hire an agreed upon percentage of Fort Worth residents;
4. commit to hire an agreed upon percentage of Central City residents;
and
5. landscaping.
D. MIXED-USE DEVELOPMENT PROJECTS LOCATED IN A NEZ
1. 100% Abatement of Citv Ad Valorem taxes for 5 vears
If an applicant applies for a tax abatement aqreement with a term of five years or
less this section shall apply.
Abatements for Mixed-Use DeveloPment Projecis for up to 5 years are subject to
City Council approval. The applicant may apply with the Housing Depariment for
such abatement.
The applicant must apply for the tax abaiement and be approved by City Council
before construction or rehabilitation is started.
In order to be eligible for a property tax abatement, upon completion, a newly
constructed or rehabilitated mixed-use development project in a NEZ must satisfy the
following:
a. Residential uses in the project constitute 20 peteent or more of the total Gross
Floor Area of the project; and
b. Office, eating and entertainment, and/or retail sales and service uses in the
project constitute 10 percent or more of the total Gross Floor Area of the project;
and �
(1) A mixed-use development project constructed after NEZ designation must
have a minimum Capital Investment of $200,000; or
(2) For a rehabilitation project, it must be rehabilitated after NEZ designation.
Eligible Rehabilitation costs on the property shall be at least 30% of ihe Base
Value of the property, or $200,000, whichever is greater.
2. 1%-100% Abatement of Cifv Ad Valorem taxes up io 1 � vears
If an applicant applies for a tax abatement aQreement with a term of more than five
vears this section shall applv.
Abatements agreements for a Mixed Use Development projects for up to 10 years
are subject to City Council approval. The applicant may apply with the Housing
Department for such abatement.
The applicant must apply for the tax abatement before construction or rehabilitation
is started and the application for the tax abatement must be approved by City
CounciL
Years 1 throu�h 5 of the Tax Abatement AQreement
Mixed Use Development projects shall be eligible for 100% abatement of City ad
valorem taxes for the first five years of the Tax Abatement Agreement upon the
satisfaction of the following:
a. Residential uses in the project constitute 20 percent or more of the total Gross
Floor Area of the project; and
b. Office, eating and entertainment, and/or reiail sales and service uses in the
project constitute 10 percent or more of the total Gross Floor Area of the project;
and
c. A new mixed-use development project constructed after NEZ designation must
have a minimum Capital Investment of $200,000; or for a rehabilitation project, it
must be rehabifitated after NEZ designation. Eligible Rehabilitation costs on the
property shall be at leasi 30% of the Base Value of the property, or $200,000,
whichever is greater.
Years 6 throuqh 10 of the Tax Abatement Aqreement
Mixed Use Developmeni projects shall be eligible for 1-100% abatement of City ad
valorem taxes for years six through ten of the Tax Abatement Agreernent upon the
satisfaction of the following:
a. Residential uses in the project constitute 20 percent or more of the total Gross
Floor Area of the project; and
b. Office, eating and entertainment, and/or retail sales and service uses in the
project constitute 10 percent or more of the total Gross Floor Area of the project;
c. A new mixed-use development project consfructed after NEZ designation must
have a minimum Capital Investment of $200,000; or for a rehabilitation project, it
must be rehabilitated after NEZ designation. Eligible Rehabilitaiion cosis on the
property shail be at least 30% of ihe Base Value of the property, or $200,000,
whichever is greater; and
d. Any other terms as City Council of the City of Fort Worth deems appropriate,
including, but nat fimited to:
1. utilization of Fort Worth companies for an agreed upon percentage of the
total costs for construction contracts;
. 2. utilization of certified minority and women owned business enterprises for
� an agreed upon percentage of the total costs for construction contracts;
3. property inspection;
4. commit to hire an agreed upon percentage of Fort Worth residents
5. commit to hire an agreed upon percentage of Central City residents
6. landscaping;
7. tenant selection plans; and
8. management plans.
E. ABATEMENT GUlDELINES
1. If a NEZ is located in a Tax Increment Financing District, City Council will determine
on a case-by-case basis if the tax abatement incentiv.es in Section III will be offered
to eligible Projects. Eligible Projects must meet all eligibility requirements specified
in Section III.
2. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order
to be considered °efigible° to apply for a tax abatement under this Policy, the
Woodhaven Community Development Corporation and the Woodhaven
Neighborhood Association must have submitted a lefter of support for the Project to
the Cify of Fort WorEh
3. In order to be eligible to apply for a tax abatement, the property owner/developer
must:
a. Not be delinquent in paying property taxes for any property owned by the
owner/developer, except that an owner/developer may enter into a tax
abatement agreement with the city of Fort Worth for a specific Project if:
1. the Project meets NEZ tax abatement criteria; and
2. the applicant is not responsible for the tax delinquency for the Property;
and
3. the applicant enters into an agreement io pay off the taxes under the
guidelines permitted under state law; and
4. the tax abatement shall provide that the agreement shall take effect
after the delinquent taxes are paid in full
b. Not have any City of Fort Worth liens filed against any property owned by the
applicant property owner/developer. "Liens" include, but are not limited to, weed
liens, demolition liens, board-up/open structure liens and paving liens.
4. Projects to be constructed on property to be purchased under a contract for deed are
not eligible for tax abatements.
5. Once a NEZ property owner of a residential property (including multi-family) in the
NEZ satisfies the criteria set forth in Sections III.A, E.1. and E.2. and applies for an
abatement, a property owner may enter into a tax abatement agreemeni with the City
of Fort Worth. The tax abatement agreement shall automatically terminate if the
property subject to the tax abatement agreement is in violation of the City of Fort
Worth's Minimum Building Standards Code and the owner is convicted of such
violation.
6. A tax abatement granted under the criteria set forth in Section III. can only be
granted once for a property in a NEZ for a maximum term of as specified in the
agreement. If a property on which tax is being abated is sold, the City will assign the
tax abatement agreement for the remaining term once the new owner submits an
appfication.
7. A property owner/developer of a multifamily development, commercial, industrial,
community facilities and mixed-use development project in the NEZ who desires a
tax abatement under Sections III.B, C or D must:
a. Satisfy the criteria set forth in Sections III.B, C or D, as appficable, and Sections
III.E.1 E.2; and E3. and
b. File an application with the Housing Department, as applicable; and
c. The property owner must enter into a tax abatement agreement with the City af
For� Worth. In addition to the other terms of agreement, the tax abatement
agreement shall provide that the agreement shall automatically terminate if the
owner receives one conviction of a violation of the Ciiy of Fort Worth's Minimum
Building Standards Code rega�ding the property subject to the abatement
agreement during the term of the tax abatement agreement; and
d. If a property in the NEZ on which tax is being abated is sold, the new owner may
enter into a tax abatemeni agreement on the property for the remaining term.
8. If the terms of the tax abaiement agreement are not met, the City Council has the
right to cancel or amend the abatement agreement. In the event of cancellation, the
recapture of abated taxes shall be limited to the year(s) in which the default occurred
or continued.
9. The terms of the agreement shall include the City of Fort Worth's right to: (1) review
and verify the applicant's financial statements in each year during the life of the
agreement prior to granting a tax abatement in any given year, (2) conduct an on site
inspection of the project in each year during the life of the abatement to verify
compfiance with the terms of the tax abatement agreement, (3) terminate the
agreement if the Project coniains or will contain a sexualiy oriented business (4
terminate the agreemeni, as determined in City's sole discretion, if the Project
contains or will contain a liquor store or package sfore.
10. Upon completion of construction of the facilities, the City shall no less than annually
evaluate each project receiving abatement to insure compliance with the terms of the
agreement. Any incidents of non-compliance will be reported to the City Council.
On or before February 1 st of every year during the life of the agreement, any
individual or entity receiving a tax abatement from the City of Fort Worth shall
provide information and documentation which details the property owner's
compliance with the terms of the respective agreement and shall certify that the
owner is in compliance with each applicable term of the agreement. Failure to report
this information and to provide the required ceriification by the above deadline sha11
result in cancellation of agreement and any taxes abated in the prior year being due
and payable.
11. If a property in the NEZ on which tax is being abated is sold, the new owner may
enter into a tax abatement agreemeni on the property for the remaining term. Any
sale, assignment or lease of the property which is not permifted in the tax abatement
agreement results in cancellation of ihe agreement and recapture of any taxes
abated after the date on which an unspecified assignment occurred.
F. APPLICATION FEE
1. An appfication fee of $25.00 for all basic incentives, excluding tax abatements.
2. The application fee for residential tax abatements governed under Seciion III.A is
$100. .
3. The application fee for multi-family, commercial, industrial, community facilities and
mixed-use development projects governed under Sections III.B., C. and D., is one-
half of one percent (0.5%) of the proposed Project's Capital lnvesiment, with a$200
minimum not to exceed $2,000 . The application fee will be refunded upon issuance
of certificate of final occupancy and once the property owner enters into a tax
abatement agreement with the City. Otherwise, the Application Fee shall not be
credited or refunded to any party for any reason.
IV. FEE WAIVERS
A. ELIGIBLE RECIPIENTSlPROPERTIES
1. City Gouncil shall determine on a case-by-case basis whether a Project that will
contain or contains a liquor store or package store is eligible to apply for a fee
waiver.
2. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order
to be considered "eligible" to apply for a fee waiver under this Policy, the Woodhaven
Community Development Corporation and the Woodhaven Neighborhood
Association must have submitfed a letter of support for the Project to the City of Fort
Worth.
3. Projects to be constructed on property to be purchased under a contract for deed are
not eligible for development fee waivers.
4. In order for a properiy ownerldeveloper to be eligible to apply for fee wai�ers for a
Project, the property owner/developer:
a. must submit an application to the City;
b. must not be delinquent in paying prope�fiy taxes for any property owned by the
owner/developer or applicant;
c. must not have any Ciiy liens filed against any property owned by the applicant
proper�y owner/developer, including but not fimited to, weed liens, demolifion
liens, board-up/open structure liens and paving liens; and
d. of a Project that will contain or contains a liquor store, package st�re or a sexually
oriented business has received City Council's determination that the Project is
eligible to apply for fee waivers.
Approval of the aqpfication and waiver of the fees shall not be deemed to be
approval of anv aspect of the Proiect. Before construction, the applicani must
ensure that the prolect is located in the correct zoninq district.
B. DEVELOPMENT FEES
Once the Application for NEZ Incentives has been approved and certified by the City, the
following fee"s for services performed bv the Citv of Fort Worth for Projects in the NEZ
are waived for new construction projects or rehabilitation projecis that expend at least
30% of the Base Value of the property on Eligible Rehabilitation costs:
1. All building permit related fees (including Plans Review and Inspections)
2. Plat applicaiion fee (including concept plan, prefiminary plat, final plat, short form
replat)
3. Board of Adjustment appfication fee
4. Demolition fee
5. Structure moving fee
6. Community Facilities Agreement (CFA) application fee
7. Zoning application fee
8. Street and utility easement vacation application fee .
9. Ordinance Inspection Fees
10. Consent/Encroachment Agreement Application Fees
Other development related fees not specified above will be considered for approval by
City Council on a case-by-case basis.
C. IMPACT F�ES
1. Single family and multi-family residential development projects in the NEZ.
Auiomatic 100% waiver of water and wastewater impact fees will be appfied.
2. Commercial, industrial, mixed-use, or community facility development projects in the
N EZ.
a. Automatic 100% waiver of water and wastewater impact fees up to $55,000 or
equivalent to iwo 6-inch meters for each commercial, industrial, mixed-use or
community facility development project.
b. If the project requests an impacf fee waiver exceeding $55,000 or requesting a
waiver for larger and/or more than fwo 6-inch meter, then City Council approval is
required. Applicant may request the additional amount of impact fee waiver
through the Housing Department.
V. RELEASE OF CITY LIENS
A. ELIGIBLE RECIPIENTSlPROPERTIES
1. City Council shall determine on a case-by-case basis whether a Project that will
contain or contains a Iiquor store or package store is eligible to apply for a fee
waiver.
2. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order
to be considered °eligible° to apply for release of city liens under this Policy, the
Woodhaven Community Development Corporation and the Woodhaven
Neighborhood Association must have submifted a letter of support for the Project to
the City of Fort Worth—however, once the NEZ Plan is submitted for the Woodhaven
NEZ, this will no longer be required.
3. Projects to be constructed on property to be purchased under a contract for deed are
not eligible for any release of City Liens.
4. In order for a property owner/developer to be efigible to apply for a release of city
Iiens contained in Section V.B., C., D., and E. for a Project, the property
owner/developer:
a. must submit an application to the City;
b. must not be definquent in paying property taxes for any property owned by the
owner/developer;
b. must not have been subject to a Building Standards Commission's Order of
Demolition where the property was demolished within the last five (5) years;
c. must not have any City of Fort Worth liens filed against any other property owned
by the applicant property owner/developer. "Liens° includes, but is not limited to,
weed liens, demolition liens, board-up/open structure liens and paving fiens; and
d. of a Project that contains or will contain a liquor store, package store or a sexually
oriented business ha"s received City Council's determination the Project is eligible
to apply for release of City liens.
5. In order for a Rehabilitation Project to qualify for a release of cify liens, the
owner/developer�must spend Eligible Rehabilitation costs on the Property of at lease
30% of the Base Value of the Property.
6. Liens shall be released once the Project Improvements have been made to the
properiy.
7. Any liens filed after the initial certification of the property shall not be released.
B. WEED LIENS
The following are eligible to apply for releasE of weed liens:
1. Single unit owners perForming rehabilitation on tf�eir properties.
2. Buifders or developers constructing new homes on vacani lots.
3. Owners performing rehabilitation on multi-family, commercial, industrial, mixed-use,
or community facility properties.
4. Developers constructing new multi-family, commercial, industrial, mixed-use or
community facility development projects.
C. DEMOLITION LIENS
Builders or developers developing or rehabilitating a properfy for a Project are efigible to
apply for release of demolition fiens for up to $30,000. Releases of demolition liens in
excess of $30,000 are subject to City Council approval.
D. BOARD-UP/OPEN STRUCTURE LIENS
The following are eligible to apply for release of board-up/open structure liens:
1. Single unit owners performing rehabilitation on their properties.
2. Builders or developers constructing new single family homes on vacant lots.
3. Owners performing rehabilitation on multi-family, commercial, industrial, mixed-use,
or community facility properties.
4. Developers constructing multi-family, commercial, industrial, mixed-use, or
community facility projects.
E. PAVING LIENS
The following are eligible to apply for release of paving liens:
1. Single unit owners petfiorming rehabilitation on their properties.
2. Builders or developers constructing new homes on vacant lots.
3. Owners performing rehabilitation on multi-family, commercial, industrial, mixed-use,
or community facility properties.
4. Developers constructing multi-family, commercial, industrial, mixed-use, or
community facility projects.
VI. PROCEDURAL STEPS
A. APPLICATION SUBMISSION
1. The applicant for NEZ incentives under Sections III. IV., and V. must complete and
submit a City of Fort Worth "Application for NEZ Incentives" and pay the appropriate
application fee to the Housing Department, as applicable.
2. The applicant for incentives under Sections III.C.2 and D.2 must also complete and
subrnit a City of Fort Worth "Application for Tax Abatement" and pay the appropriate
appfication fee to the Economic Development Office. The appfication fee, review,
evaluation and approval wifl be governed by City of Fort Worth Tax Abatement Policy
Statement for Qualifying Development Projects. ___ _ ____ _— _ _ _
, ,2 ,. l �, � ,>,,
B. CERTIFICATIONS FOR APPLIGATIONS UNDER SECTIONS I11. IV, AND 1�' -� r��"��;` ''2� �'�'�`�
., , ;,, ,_ ; ..��,,, �a,,'
e 'v��L� ��s�'l;i`'l�'�v��;�tl
1. The Housing Department will review the application for accuracy and � j� `V�,`',n;? �;1�, � f;?�'�.:
completeness. Once the Housing Department determines that the application is
complete, the Housing Department will certify the property owner/developers
eligibility to receive tax abatements and/or basic incentives based on ihe criteria set
forth in Section Ifl., IV., and V. of this policy, as appiicable. Once an applicant's
eligibility is certified, the Housing Department will inform appropriate departments
administering the incentives. An orientation meeting with City departments and the
applicant may be scheduled. The departmenis include:
a. Housing Department: property tax abatement for residential properties and multi-
family development projects, release of City liens.
b. Economic Development Office: property tax abatement for commercial,
industrial, communify facilities or mixed-use development projects.
c. Development Department: development fee waivers.
d. Water Department: impact fee waivers.
e. Other appropriate departments, if applicable.
2. Once Development Department, Water Department, Economic Development Office,
and/or other appropriate department receive a certified application fram the Housing
Depa�tment, each department/office shall fill out a"Verification of NEZ Incentives for
Cer�ified NEZ Incentives Application" and return it to the Housing Department for
record keeping and tracking:
C. APPLICATION REVIEW AND EVALUATION FOR APPLICATIONS
1. Properiy Tax Abatement for Residential Properties and Multi-family Development
Projects
a. For a completed and certified application for no more than five years of tax
abatement, with Council approval, the City Manager shall execute a tax
abatement agreement with the applicant.
b. For a completed and certified multi-family development project appfication for
more than five years of tax abatement:
(1) The Housing Department will evaluate a completed and certified application
based on:
(a) The project's increase in the value of the tax base.
(b) Costs to the City (such as infrastructure participation, etc.).
(c) Percent of construction contracts committed to:
(i) Fort Worth based firms, and
(ii) Minority and Women Owned Business Enterprises (M/WBEs).
(d) Other items which the City and the applicant may negotiate.
(2) Consideration by Council Committee.
Based upon the outcome of the evaluation, Housing Department may present
the application to the City Council's Economic Development Committee.
Should the Housing Department present the application to the Economic
Development Committee, the Commiftee will consider the application at an
open meeting. The Committee may:
(a) Approve the application. Staff will then incorporate the application into a
tax abatement agreement which will be sent to the City Council with the
Committee's recommendation to approve the agreement; or
(b) Request modifications to ihe application. Housing Department staff will
discuss the suggested rnodifications with the applicant and then, if the
requested modifications are made, resubmit the modified application to
the Committee for consideration; or
(c) Deny the application. The applicant may appeal the Committee's finding
by requesting the City Council to: (a) disregard the Committee's finding
and (b) instruct city staff to incorporate the application into a tax
abatement agreement for future consideration by the City Council.
(3) Consideration by the City Council
The City Council retains sole authority to approve or deny any tax abatement
agreement and is under no obligation to approve any tax abatement
application or tax abatement agreement. The Cify of Fort Worth is under no
obligation to provide tax abatement in any amount or value to any applicant.
c. Effective Date for Approved Agreements
All tax abatements approved by the City Council will become effeciive on
January 1 of the year following the year in which a Certiftcate of Occupancy (CO)
is issued for the qualifying development project (unless otherwise specified in the
tax abatement agreement). Unless otherwise specified in the agreement, taxes
levied during the construction of the project shall be due and payable.
2. Property Tax Abatement for Commercial, Industrial, Community Facilities, and
Mixed-Use Development Projects
a. For a completed and certified appfication for no more than five years of tax
abatement, with Council approval, the City Manager shall execute a tax
abatement agreement with the applicant.
b. For a completed and certified application for more than five years of tax
abatement:
(1) The Economic Development Office will evaluate a completed and certified
application based on:
(a) The project's increase in the value of the tax base.
(b) Costs to the Ciiry (such as infrastructure participation, etc.).
(c) Percent of construction contracts committed to:
(i) Fort Worth based firms, and
(ii) Minority and Women owned Business Enterprises (MIWBEs).
(d) Other items which the Ciiy and the applicant may negotiate.
(2) Consideration by Council Committee
Based upon the outcome of the evaluation, the Economic Deveiopment
Office may present the application to the City Council's Economic
Development Committee. Should the Economic Development Office present
the application to the Economic Development Committee, the Commitiee will
consider the application at an open meeting. The Committee may:
(a) Approve the application. Staff will then incorporate the application into a
tax abatement agreement which will be sent to the City Council with the
Committee's recommendation to approve the agreement; or
(b) Request modifications to the application. Economic Development Office
staff will discuss the suggested modifications with the applicant and then,
if the requested modifications are made, resubmit the modified application
to the Committee for consideraiion; or
(c) Deny the application. The appficant may appeal the Committee's finding
by requesting the City Council to: (a) disregard the Committee's finding
and (b) instruct city staff to incorporate the application into a tax
abatement agreement for future consideration by the City Council.
(3) Consideration by the City Council
The City Council retains sole authority to approve or deny any tax abatement
agreement and is under no obligation to approve any tax abatement
application or tax abatement agreement. The City of Fort Worth is under no
obligation to provide tax abatement in any amount or value to any applicant.
c, Effective Date for Approved Agreements
All tax abatements approved by the City Council will become effective on
January 1 of the year following the year in which a Certificate of Occupancy (CO)
is issued for the qualifying development project (unless otherwise specified in the
tax abatement agreement). Unless otherwise specified in the agreement, taxes
levied during the construction of the project shall be due and payable.
3. Development Fee Waivers
a. For certified apptications of development fee waivers that do not require Council
approval, the Development Department will review the certified applicant's
application and grant appropriate incentives.
b. For certified applications of development fee waivers that require Council
approval, City staff will review the certified applicant's application and make
appropriate recommendations to the City Council.
4. Impact Fee Waiver
a. For certified applications of impact fee waivers that do not require Council
approval, the Water Department will review the certified applicant's application
and grant appropriate incentives.
b. For certified applications of impact fee waivers that require Council approval, the
Water Department will review the certified applicant's application and make
appropriate recommendations to the City Council.
5. Release of City Liens
For certified applications of release of City liens, fhe Housing Department will release
the appropriate fiens.
VII. REFUND POLICY
In order for an ownerldeveloper of a Project in a NEZ to receive a refund of development
fees or impact fees, the conditions set forth in the Refund of Development and Impact
Fee Policy, attached as Attachment °A", must be satisfied.
VII1. OTHER INCENTIVES
A. Plan reviews of proposed development projects in the NEZ will be expedited by the
Development Department.
B. The City Council may add the following incentives to a NEZ in the Resolution adopting
the NEZ:
1. Municipal sales tax refund
2. Homebuyers assistance
3. Gap financing
4. Land assembly
5. Conveyance of tax foreclosure praperties
6. Infrastructure improvements
7. Support for Low Income Housing Tax Credit (LIHTC) applications
8. Land use incentives and zoning/building code exemptions, e.g., mixed-use, density
bonus, parking exemption
9. Tax Increment Financing (TI�
10. Public Improvement District (PID)
11. Tax-exempt bond financing
12. New Model Blocks
13. Loan guarantees
14. Equity investments
15. Other incentives that will effectuate the intent and purposes of NEZ.
IX. Public Notification
a. Subject to subsection (b), in order for an owner/developer to apply io receive any
incentives provided for under the NEZ tax Abatement Policy and Basic Incentives,
an owner/developer must meet with the following persons and organizations to
discuss the Project:
1. the Council Member for the District the Project is located; and
2. the neighborhood associations or community based organizations registered
with the city in the NEZ the Project is located.
b. Subsection (a) shall be satisfied upon:
1. the owner/developer meeting with the City Council Member for the District the
Project is located and the neighborhood associations or community based
organizations registered with the city in the NEZ the Project is located; or
2. meeting with fhe City Council Member for the District the Project is located and
upon the ownerldeveloper providing proof that the owner/developer attempted to
meet with the neighborhood associations and the communify based
organizations registered with the city in the NEZ the Project is located and the
associations or organizations failed to arrange a meeting with the
ownerldeveloper within two weeks of initial contact.
c. The Public Notification Process listed in (a) and (b) above sha(I only apply to NEZs in
which the Ciiy Council has not approved a NEZ Strategic Plan. Once the a NEZ
Strategic Plan has been approved for the particular NEZ, no public notification shall be
required for NEZ Incentives so long, as the Project meets the criteria outlined in the
relevant NEZ Strategic Plan.
X. Inefiaible Proiecfis
The following Projects or Businesses shall not be eligible for any incentives under the Cify' of
Fort Worth's Neighborhood Empowerment Zone (NEZ) Tax Abatement Policy and Basic
Inceniives:
1. Sexually Oriented Businesses
2. Non-residential mobile structures
ATTACHMENT A
REFUND OF DEVELOPMENT AND IMPACT FEES PQLICY
Purpose
This refund policy is for the purpose of establishing the conditions under which the City
may refund development and impact fees, normally waived through the Neighborhood
Empowerment Zone (NEZ). �
Applicabilify
Unless expressly excepted, this policy applies to all developrr�ent and impact fees
waived by the City through the NEZ.
Under the NEZ Tax Abatement Policy and Basic Incentives, City Departments are
authorized to waive impact and development fees for qualified projects located in a
designated NEZ. The impact fees include only water and �ewer impact fees, up to
$55,000 for commercial, industrial, mixed-use or communiiy facilities projects. The
development fees that can be waived through the NEZ include:
1. All building permit fees (including Plans Review and Inspections}
2. Plat appfication fee (including concept plan, pre(iminary plaf, final plat, shor� form
replat)
3. Board of Adjustment application fee
4. Demolition fee
5. Structure moving fee
6. Communify Facilities Agreement (CFA) application fee
7. Zoning application fee
8. Street and utility easement vacation application fee.
To take advantage of these waivers, appficants need to obtain a certification letter from
the Housing Department. �
Conditions for Refunds
The City will consider refunds only when circumstances beyond the developers control
prevent them from obtaining the qualification letter from the Housing Department.
A property owner and/or developer may qualify for a refund if the proposed
development project meets all criteria to receive a fee waiver under the NEZ Tax
Abatement and Basic Incentives Policy and:
a. The owner and/or developer was not made aware of the NEZ incentives at the
time the fees were paid; or
b. The owner and/or developer was mistakenly told that his/her property was not in
a designated NEZ; or
c. The owner and/or developer has put funds in an escrow account with a City
Department while awaiting a decision from the City Council about his/her project;
or
d. City Council authorizes a City Department to issue a refund to the
owner/developer.
Refund Charge
A refund charge will be assessed to help defray administration cost associated with the
processing of refund check. The charge shall be 20% of the amount of the refund. This
charge will be automatically deducted from the total refund amount.
Statute of Limitations
Any request, action or proceeding conceming the refund of fees normally waived
through the NEZ must be filed within ninety days following the date that the fees were
paid. An applicant who does not submit a refund request within 90 days of the
transaction shall not qualify for a refund.
To obtain a refund the applicant needs to:
• submit a NEZ application to the Housing Department for determination of the
eligibiliiy for NEZ fee waivers, and
• submit a written request to the Department in which the fees were paid. Upon
receiving a confirmation from the Housing DeparEment that the project meets all NEZ
fee waiver criteria, that Department shall process the request based on the
qualifications discussed in this policy.
Exemptions
The provisions of this policy do not apply to:
a. Fees that are not waived through the NEZ program; and
b. Taxes and special assessments; and
c. City liens such as mowing, board-up, trash, demolition and paving liens.
An applicant sha(I not qualify for any refund if:
a. The applicant was made aware of the NEZ incentives before helshe pays the
fees; or
b. The applicant does not meet the requirements for NEZ incentives at the time
he/she paid the fees; or
c. The applicant paid the fees before the refund policy was put in place; or
d. The applicant paid the fees before the designation date of the NEZ.
Disclaimer
In the event of any conflict between the City's ordinances or regulations and this policy,
such ordinances or regulations shall control. In the event of any conflict between this
policy and other poficies or regulations adopted by fhe City Department issuing the
refund, such department policies or regulations shall control. The City reserves the right
to deny any or all request for refunds.
EXHIBIT "B"
Property Description
3109 Avenue I, Block 56 Lots East '/z of lot 10 and all of lot 11, Polytechnic Heights
Addition, in the City of Fort Worth, Tarrant County, Texas, and as shown on the Plat
recorded on Page 109, Volume 63, Plat Records, Tarrant County, Texas
��r;. ,// � � ���1� �� � �
FORT WORTH '�`�":.�������� ,/�
�� Application No. ��- f-1- � C� ��p
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) PROGRAM
pun.TFCT CERTIFICATION APPLICATION - FORM "A" FOR HOMEOWNERS
I. APPLICATION CHECK LIST
Please submit the following documentation:
� A completed application form
�
�J
/:1
�
►j
❑�
A list of all properties owned by the applicant, owner, developer, associates, principals, partners, and
agents in Fort Worth
Application fee — cashier's check or money order payable to the City of Fort Worth (For tax abatement
applications only. For multifamily, commercial, industrial, commercial facilities, and miYed-use tax
abatement applications: 0.5% of the total Capital Investment of the project, not to exceed $1,000.00; For
single family ta�c abatement applications: $25 per house}
Proof of ownership, such as a warranty deed, aifidavit of heirship, or a probated will OR evidence of site
control, such as option to buy (A registered warraniy deed is required for ta� abatement application.)
Title abstract of the property (only if applying for release of Ciiy liens)
A completed set of ri�velopment plans, project description and development budget or contractor's quote
Copy of Incorporation Papers noting all principaLs, partners, and agents
❑ Met with the Councilmember and Neighborhood & other Orgav_izations representing the NEZ as outlined
in the Public Notice requirement of the NEZ �olicy a.nci Guidelines revised Aprii 6, 2004.
� Support letter from Woodhaven Neighborhood Association and Woodhaven Community Development
Corporation (For projects located in Woodhaven NEZ only)
I�ICpyip�i,i, i E: APFLICA'�IOI�5 vJiLL IV�i BE PROC�5Sit,D t�R �En'�IFI�ATI�N UNTIL �,I.�
REQUIRED DOCUMENTS SHOWN IN THE ABOVE CHECKLIST ARE SUBMITTED WITHIN 30 DAYS �
AFTER THE APPLICATION IS RECEIVED. � �
YOU MU5T APPLY FOR TAX ABATEMENT BEFORE ANY BUILDING PERMITS ARE ISSUED FOR
YOUR PROPERTY AND BEFORE ANY IMPROVEMENTS ARE MADE TO YOUR PROPERTY. IT
TAKES 30 TO 90 BUSINES5 DAYS TO COMPLETE THE TAX ABATEMENT AGREEMENT
APPROVAL PROCESS AFTER THE I5SUANCE OF NEZ CERTIFICATION DEPENDING ON THE
COMPLEXITY OF YOUR PROJECT.
II. APPLICANT / AGENT INFORMATION
1. Applicant:
3. Address:
4. Phone no.:
6. Lmaii:
7. Agent (if any)
8. Address:
9. Phone no.:
�� � � � 2. Contact Person:
� � "� Y�y �ts �Y� �
r�r r 1 _..
Street City � State Zip
� �t � -= � `i (� "-��;.'� :: �j 5. Fax No..
c�
Street
Ciiy Staie Zip
10. Fax No::
11. Email: � '" —
%F � ( �� f�1 tE �� � f`i i'��—�. � i'✓l
If you need further information or clarification, please contact Jamie Warner at (817) 392-7507 or
c�r�t, n,�iP at(R171 �9'7.-7316. -
Cn
FORT WORTH
Application No.
PROJECT ELIGIBILITY
1. Please list down the addresses and legal descriptions of the project and other properties your
organization owns in Fort Worth. Attach metes and bounds description if no address or legal
description is available. Attach an exhibit showing the location of the project.
(Please attach additional sheets of paper as needed.)
2. For each properties listed in Table 1, please check fhe boges below to indicate if:
• there are taxes due; or
� there are City liens; or �
• You (meaning the applicant, developer, associates, agents, principals) have been subject to a Building
Standards Commission's Order of Demolition where the property was demolished within the last five
years.
(Please attach additional sheets of paper as needed.)
FORT WORTH
3. Do you own other properties under other names?
Application No.
❑ Yes No
If Yes, please specify
4. 17oes the proposed project conform with City of Fort Worth Zoning? es ❑ No
If no, what steps are being taken to insure compliance?
5. Project Type: L� ❑ ❑ �
Single Multi- Commercial Industrial
❑ ❑ .
Community Mixed-Use
Family Family Facilities
6. If your project is a commercial, industrial, or mized-use project, please describe the types of
businesses that are being proposed:
7. Is this ew construction or rehab project?
New Construction ❑ Rehab
8. �How much is the total development cost of your project? ��n��`� ,�
9. ill the eligible rehabilitation work* equal to at least 30% of the Tarrant Appraisal District (T�)
asse d value of the structure during the year rehabilitation occurs? ❑ Yes o
• Eligible re ilita.tion includes only physical improvements to real property. It does NOT includ :
Front yard fencin onsisting of chain-link or solid material construction; personal property ch as furniture,
appliances, equipment, d/or supplies. Tota1 eligible rehabilita.tion costs shall equal to or ex ed 30% of the TAD
appraised value of the struc during the year rehabilitation occurs. ��
10. How much is the total square f tage of your project?
11. For a sin le-famil homeownershi ixed-use or mult
the number of residential units based on come range of
'Table 3 IVi�mber of Residential Units and Inco�e
> 80% ofAMFI**
At or below 80% of AMFI
of Ow
� , square feet
�elopment projee#; please fill out
or renters in the following table.
or Renters
*,*____.--- -__ __
• AMFI: Area Median Family Income. Pl e see aitachment for income and housing paym t guidelines.
12. For a multifamily p�
aiiordable to iamiiies
requirement. ❑
13. For a commerc'
residential sp e.
Com rcial
'ect o be qualified for tax abatement, at least 20° o f total units shall be
T r beiow $0% oi A.N�iF'i. Cneck ine nox ii you are reque 'ng a vvaiver of fnis
dustrial or community facilities project, indicate square footag of non-
Industrial
Community Facilities
square feet I I square feet I square feet
FORT �VORTH
Application No.
PLEASE ANSWER QUESTIONS N0.14 TO NO. 16 ONLY II' YOU ARE APPLYING R TAX
ABATEMENT.
14. How much will be your Capital Investment*** on the project? Please use the ollowing table to
provide the details and amount of your Capital Investment (Attached additiona eets if necessary).
Tahle 4 Canital Investment of the Proiect
***Capital Investment includes on eal property improvem such as new facilities and structures, site improvements, facility
expansion, and facility modernization. Capital Inves ent DOES NOT include land acquisition costs and/or any existing
improvements, or personal property (such achine , equipment, and/or supplies or inventory).
15. For a commercial industrial com uni or m�ed-use ro'ect, how many employees will the
project generate?
16. For a miged-use proiect, ple e indicate the percentage o 1 uses in the project in the following table.
Table 5 Percentage of
Residential
Office
Retail"salea
Service
III. INCENTIVES
in a Mixed-Use Proiect
l. What incentives are you applying for?
Municipal Properiy Tax Abatements
Must provide Final PIat Cabinet and Slide for Tax Abatement Cabinet
❑ 5 years � More than 5 years
Develonment Fee Waivers
All building permit related fees (including Plans Review and Inspections)
Slide
Plat application fee (including concept plan, preluninary plat, fmal plat, short form replat)
Zoning application fee ❑ Board of Adjustment application fee
Demolition fee ❑ Structure moving fee
Community Facilities Agreement (CFA) application fee
Street and utiliiy easement vacation application fee
��ct Fee Waiver
� Impact fee
Release of Citv Liens
❑ Weed liens
❑ Board up/open structure liens
Meter Size
❑ Paving liens
❑ Demolition liens
No. of ineters?
FORT WORTH
Application No.
III. ACKNOWLEDGMENTS
I hereby certify that the information provided is true and accurate to the best of my knowledge. I hereby
acknowledge that I have received a copy of NEZ Basic Incentives, which governs the granting of tax abatements, fee
waivers and release of City liens, and that any VIOLATION of the terms of the NEZ Basic Incentives or
MISREPRESENTATION shall constitute grounds for rejection of an application or termination of incentives at the
discretion of the City.
I understand that the approval of fee waivers and other incentives shall not be deemed to be approval of any aspect of
the project. I understand that I am responsible in obtaining required permits and inspections from the Ciiy and in
ensuring the project is located in the correct zoning district.
I understand that my application will' not be processed if it is incomplete. I agree to provide any additional
information for determining eligibility as requested by t e City.
e
NAME)
❑�
i� � �
(DATE)
Electronic version of this form is available by request. Please call 817-392-7507 to request a copy. For more
information on the NEZ Program, please visit our web site at www.fortworthgov.org/housing. �
For Office Use Only
Application No. In which NEZ? Council District
Application Completed Date (Received Date): Conform with Zoning? ❑ Yes �No
Type? ❑ SF ❑ Multifamily ❑ Commercial ❑ Industrial ❑ Community facilities ❑ Mi�ced-Use
Construction completion date? ❑ Before NEZ � After NEZ Ownership/Site Control ❑ Yes ❑ No
TAD Account No.
Meet affordability test?
Rehab at or higher than 30%?
Tax current on this property?
City liens on this property?
• Weed liens
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes
• Board-up/open structure liens ❑ Yes
• Demolition liens ❑ Yes
• Paving liens ❑ Yes
• Order of demolition ❑ Yes
Certified? ❑ Yes ❑ No Certified by
If not certified, reason
Referred to:
❑ No
❑ No
❑ No
❑ No
❑ No
Consistent with the NEZ plan? ❑ Yes
Minimum Capital Investment? ❑ Yes
Meet miYed-use defmition? ❑ Yes
Tax current on other properties? ❑ Yes
City liens on other properties?
• Weed liens
• Board-up/open structure liens
• Demolition liens
• Paving liens
• Order of demolition
Date certification issued?
❑Water ❑Code
❑ Yes
❑ Yes
❑ Yes
❑ Yes
❑ Yes
❑ No
❑ No
❑ No
❑ No
❑ No
❑ No
❑ No
❑�No
❑ No
Project Description
Single Family Residence
Brick Veneer
3 bedrooms
2 and 1/2 baths
Fireplace
1900 square feet living space
2-car garage
EXHIBIT "D"
Page 1 of 2
City of Fort Worth, Texas
Mayor and Council Communication
- - _ . .- __ : _ .�_��
COUNCIL ACTION: Approved on 6/6/2006
, _�_ ,
� . _ _ _ _ - � --. _ _ . : _ .. - -- , . _� �
DATE: Tuesday, June 06, 2006
LOG NAME: 05LEDEZMA REFERENCE NO.: C-21491
SUBJECT:
Authorization to Enter into a Five-Year Tax Abatement Agreement with Pedro Ledezma and Ofelia
Ledezma, for Property Located at 3109 Avenue I in the Polytechnic/Wesleyan Neighborhood
Empowerment Zone
.,_, _ _ .. � - - _ . - -_ _ ---�_ ., �
RECOMMENDATION:
It is recommended that the City Council:
1. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement (the
agreement) with Pedro Ledezma and Ofelia Ledezma are true and correct; and
2. Authorize the City Manager to enter into a five-year Tax Abatement Agreement with Pedro Ledezma
and Ofelia Ledezma for the property at 3109 Avenue I in the Polytechnic/Wesleyan Neighborhood
Empowerment Zone (NEZ) in accordance with the NEZ Tax Abatement Policy and Basic Incentives.
DISCUSSION:
Pedro Ledezma and Ofelia Ledezma are the owners of the property at 3109 Avenue I(Lots East 1/2 10
and all 11, Block 56, Polytechnic Heights Addition), which is located in the Polytechnic/Wesleyan NEZ and
Neighborhood Empowerment Reinvestment Zone (NERZ No. 6). Pedro Ledezma and Ofelia Ledezma
have applied for a five-year municipal property tax abatement under the NEZ Tax Abatement Policy and
Basic Incentives (M&C G-14947), as amended. The NEZ Basic Incentives offers a five-year municipal
property tax abatement on the increased value of improvements to the qualified owner of any new
construction or rehabilitation within a NEZ. The Housing Department has reviewed the application and
certified that the property meets the eligibility criteria to receive NEZ municipal property tax abatement.
The owner plans to invest a minimum of $50,000 to construct a single family home in the
Polytechnic/Wesleyan NEZ. A description of the home to be constructed and drawings are attached as
Exhibit "A." The Tax Abatement Agreement is attached as Exhibit "B."
Upon execution of the Agreement, the total assessed value of the home used for calculating municipal
property tax will be frozen for a five-year period, starting on January 1, 2007, at the pre-improvement value
as defined by the Tarrant Appraisal District (TAD) on January 1, 2006 as follows:
Pre-improved TAD value of improvements
Pre-improved TAD value of land
Total pre-improvement estimated value
$0.00
1 000.00
$1,000.00
The municipal property tax on the improved value of the home after its construction is estimated
at $346.00, per year, for a total of $1,730.00 over the five-year period. However, this estimate may be
different from the actual tax abatement value, which will be calculated based on the TAD appraised value
of the property.
http://www. cfwnet.org/council�acket/Reports/mc�rint.asp
03/08/2007
Page 2 of 2
The tax abatement agreement provides that the agreement may be assigned without subsequent City
Council approval to Pedro Ledezma and Ofelia Ledezma's first mortgage, or to a homebuyer who will use
the required improvements as his/her primary residence, or to the homeowner's mortgagee. All other
assignments must be approved by the City Council.
This property is located in COUNCIL DISTRICT 8.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that this action will have no material effect on City funds.
TO Fund/Account/Centers
FROM Fund/Account/Centers
Submitted for Cit�Manager's Office bv: Dale Fisseler (6140)
Originating Department Head:
Additional Information Contact:
Jerome Walker (7537)
Sarah Odle (7316)
http://www.cfwnet.org/council�acket/Reports/mc�rint.asp 03/08/2007