HomeMy WebLinkAboutContract 35128C;iTY �E�REi�f�Y
�C�f�JTR/��i �IC� ,
STATE OF TEXAS §
COUNTY OF TARRANT §
TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A
NEIGHBORHOOD EMPOWERMENT ZONE
2747 8th Avenue
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 Zarif, Inc., acting by and through Samir
Khalil, its duly authorized representative, owner of property located at 2747 8th Avenue, Lot
14R1-R, Block 27, Being a Revision of Lot 14R1, Block 27, Ryan Place Addition, Recorded in
Cabinet A, Slide 10422, and Lot 22, Block 27, Ryan Place Addition, Recorded in Volume 204-A,
Page 170 in the City of Fort Worth, 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 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 neighborhood empowerment zone may enter into agreements abating municipal property
taxes on property in the zone.
C. On July 31, 2001, the City Council adopted basic incentives for property owners
who own property located in a Neighborhood Empowerment Zone, stating that the City elects to be
eligible to participate in tax abatement and including guidelines and criteria governing tax
abatement agreements entered into between the City and various third parties, titled
"Neighborhood Empowerment Zone NEZ Basic Incentives" ("NEZ Incentives"), which were
readopted on October 4, 2005 (M&C G-14947). The October 4, 2005 NEZ Incentives are attached
hereto as Exhibit "A" hereby made a part of the Agreement for all purposes.
D. The NEZ Incentives contain 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"). � `
i r; �:, � � i:s .i:::�
� �'� 'Y - r - ,� � �i. ��1:�7
, �
;��, '::;. - :'" �s � s?
� :�„;;;-a:•:�-Ii'y �LGL'r
E. On January 6, 2004, the Fort Worth City Council adopted Ordinance No. 15815
establishing "Neighborhood Empowerment Reinvestment Zone No.13, City of Fort Worth, Texas"
and adopted Resolution No. 3030 establishing "Designation of Berry University Area as a
Neighborhood Empowerment Zone" (the "NEZ").
F. On October 4, 2005, the City Council adopted Ordinance No.16634 establishing
"Neighborhood Empowerment Reinvestment Zone No. 23 City of Fort Worth, Texas" (the
"FWNERZ 23") for a portion of the Premises, as hereinafter defined, and a tax abatement
agreement (Contract No. 33008) was entered into for the FWNERZ 23 ("Existing Agreement").
G. Improvements have not been made on FWNERZ 23, the property has been enlarged
and replatted, and a new construction budget has been prepared.
H. The Existing Agreement, identified as Contract No. 33008, is hereby terminated
contemporaneously with the execution of this Agreement as of the effective date hereof and fully
substituted by this Agreement, and neither party to the Existing Agreement shall have any further
duties or responsibilities under the Existing Agreement as of the effective date hereof.
J. Owner owns certain real property located entirely within the Zone and that is more
particularly described in E�chibit "B", attached hereto and hereby made a part of this Agreement for
all purposes (the "Premises").
K. Owner or
Required Improvements,
"Project").
its assigns plan to construct an addition to an office/retail center,
as defined in Section 1.1 of this Agreement, on the Premises (the
L. On April 20, 2006 Owner submitted an application for tax abatement to the City
concerning the Premises (the "Application"), attached hereto as E�ibit "C" and hereby made a
part of this Agreement for all purposes.
M. 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.
N. The terms of this Agreement, and the Premises and Required Improvements, satisfy
the eligibility criteria of the NEZ Incentives.
O. 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.
I. On June 6, 2006, the City Council adopted Ordinance No.16989 (the
"Ordinance") establishing "Neighborhood Empowerment Reinvestment Zone No. 29 City of Fort
Worth, Texas (the "Zone") for the Premises.
2
NOW, THEREFORE, the City and Owner, for and in consideration of the terms and
conditions set forth herein, do hereby contract, covenant and agree as follows:
1. OWNER'S COVENANTS.
1.1. Real Property Improvements.
Owner shall construct, or cause to be constructed, on and within the Premises certain
improvements consisting of an office/retail center, (i) of at least 6630 square feet in size,
and (ii) having a construction cost upon completion of $277,000.00 including side
development costs but such minimum construction costs shall be reduced by any
construction cost saving (collectively, the "Required Improvements"). The type, number
and location of the Required Improvements are described in Exhibit "D." The "Required
Improvements" shall have an appraised value of $200,000.00 as determined by an
independent appraiser. Owner shall provide a copy of the final site plan and independent
appraisal to City once it is approved by the Department of Development and the parties
agree that such final site plan and independent appraisal shall be a part of this Agreement
and shall be labeled Exhibit "E". The final site plan shall be in substantially the same form
as the preliminary site plan. 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 E�ibit "D."
1.2. Completion Date of Required Improvements.
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 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 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 obtaining of adequate financing.
1.3. Use of Premises.
Owner covenants that the Required Improvements shall be constructed and the Premises
shall be continuously used as an addition to an office/retail center and in accordance with
the description of the Project set forth in the Exhibit "D." In addition, Owner covenants
that throughout the Term, the Required Improvements shall be operated and maintained
3
for the purposes set forth in this Agreement and in a manner that is consistent with the
general purposes of encouraging development or redevelopment of the Zone.
2. ABATEMENT AMOUNTS, TERMS AND CONDITIONS.
Subject to and in accordance with this Agreement, the City hereby grants to Owner real
property tax abatement on the Premises, the Required Improvements, as specifically
provided in this Section 2("Abatement"). "Abatement" of real property taxes only
includes City of Fort Worth-imposed taxes and not taxes from other taxing entities.
2.1. Amount of Abatement.
The actual amount of the Abatement granted under this Agreement shall be based upon
the increase in value of the Premises and the Required Improvements over their values
on January 1, 2006, said values being in the $770,160.00, (as of January 1, 2006).
The Abatement shall be one hundred percent (100%) of the increase in value from the
construction of the Required Improvements.
If the square footage requirement and the appraised value of the Required
Improvements are less than as provided in Section 1.1 of this Agreement, except that
such minimum construction costs shall be reduced by construction cost savings,
Owner shall not be eligible to receive any Abatement under this Agreement.
2.2. Increase in Value.
The Abatement shall apply only to taxes on the increase in value of the Premises due to
construction of the Required Improvements and shall not apply to taxes on the land.
2.3. Abatement Limitation.
Notwithstanding anything that may be interpreted to the contrary in this Agreement, the
Abatement in any given year shall be based on the increase in value of the Premises over its
value on January 1, 2006, including the Required Improvements, up to a maximum of
$1,185,660.00. In other words, by way of example only, if the increase in value of the
Premises over its value on January 1, 2006, including the Required Improvements, in a
given year is $1,190,000.00, the Abatement for that tax year shall be capped and calculated
as if the appraised value of the Premises for that year had only been $1,185,660.00.
2.4. Protests Over Appraisals or Assessments.
Owner shall have the right to protest and contest any or all appraisals or assessments of
the Premises and/or improvements thereon.
�
2.5. Term.
The term of the Abatement (the "Term") shall begin on January 1 of the year
following the calendar year in which a final certificate of occupancy is issued for
the Required Improvements ("Beginning Date") and, unless sooner terminated as
herein provided, shall end on December 31 immediately preceding the fifth (Stn)
anniversary of the Beginning Date.
2.6. Abatement Application Fee.
The City acknowledges receipt from Owner of the required Abatement application fee of
one half of one percent (.5%) of Project's estimated cost, not to exceed $2,000. The
application fee shall not be credited or refunded to any party other than the City for any
reason.
3. RECORDS, AUDITS AND EVALUATION OF PROJECT.
3.L Inspection of Premises.
Between the execution date of this Agreement and the last day of the Term and for five (5)
years after termination ("Compliance Auditing Term"), at any time during normal office
hours throughout the Term and the year following the Term and following reasonable
notice to Owner, the City shall have and Owner shall provide access to the Premises in
order for the City to inspect the Premises and evaluate the Required Improvements to
ensure compliance with the terms and conditions of this Agreement. Owner shall cooperate
fully with the City during any such inspection and/or evaluation.
3.2. Audits.
The City shall have the right to audit at the City's expense the financial and business
records of Owner that relate to the Project and Abatement terms and conditions
(collectively, the "Records") at any time during the Compliance Auditing Term in order
to determine compliance with this Agreement and to calculate the correct percentage of
Abatement available to Owner. Owner shall make all applicable Records available to the
City on the Premises or at another location in the City following reasonable advance
notice by the City and shall otherwise cooperate fully with the City during any audit.
3.3. Provision of Information.
On or before February 1 following the end of every year during the Compliance Auditing
Term and if requested by the City, Owner shall provide information and documentation
for the previous year that addresses Owner's compliance with each of the terms and
conditions of this Agreement for that calendar year. This information shall include, but
not be limited to, the number and dollar amounts of all construction contracts and
subcontracts awarded on the Project.
E
Failure to provide all information wit/rin tlae control of Orvner require�t by t/iis Secfion
3.3 slrall co�zsiitute an Eve�rt of Default, as defined i�r Section 4.1.
3.4. Determination of Compliance.
On or before August 1 of each year during the 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 Term.
4. EVENTS OF DEFAULT.
4.1. Defined.
Unless otherwise specified herein, Owner shall be in default of this Agreement if (i) Owner
fails to construct the Required Improvements as defined in Section 1.1.; (ii) ad valorem real
property taxes with respect to the Premises or the Project, or its ad valorem taxes with
respect to the tangible personal property located on the Premises, become delinquent and
Owner does not timely and properly follow the legal procedures for protest and/or contest
of any such ad valorem real property or tangible personal property taxes or (iii) OWNER
DOES NOT COMPLY WITH CHAPTER 7 AND APPENDIX B OF THE CODE OF
ETHICS (?) ORDINANCE OF THE CITY OF FORT WORTH (collectively, each an
"Event of Default").
4.2. Notice to Cure.
Subject to Section 5, if the City determines that an Event of Default has occurred, the City
shall provide a written notice to Owner that describes the nature of the Event of Default.
Owner shall have 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 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. Alternatively, 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
C�
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
naiure and will be difficult or impossible to ascertain. Therefore, upon termination of this
Agreement for any Event of Default, Owner shall not be eligible for the Abatement for the
remaining Term and Owner shall pay the City, as liquidated damages, all taxes that were
abated in accordance with this Agreement for each year when an Event of Default existed
and which otherwise would have been paid to the City in the absence of this Agreement.
The City and Owner agree that this amount is a reasonable approximation of actual
damages that the City will incur as a result of an uncured Event of Default and that this
Section 4.3 is intended to provide the City with compensation for actual damages and is not
a penalty. This amount may be recovered by the City through adjustments made to
Owner's ad valorem property tax appraisal by the appraisal district that has jurisdiction
over the Premises. Otherwise, this amount shall be due, owing and paid to the City within
sixty (60) days following the effective date of termination of this 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.
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. Sexuallv 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.
The Abatement granted hereunder shall vest only in Owner and cannot be assigned to a
new owner of all or any portion of the Premises and/or Required Improvements without
the prior written consent of the City Council. Owner may not otherwise assign, lease or
convey any of its rights under this Agreement. Any attempted assignment without the
7
City Council's prior written consent shall constitute grounds for termination of this
Agreement and the Abatement granted hereunder following ten (10) calendar days of
receipt of written notice from the City to Owner.
In no event shall the Term be extended in the event of a subsequent sale or
assignment.
6. TERMINATION OF EXISTING AGREEMENT.
The Existing Agreement, identiiied as Contract No. 33008, is hereby terminated
contemporaneously with the execution of this Agreement as of the effective date hereof
and fully substituted by this Agreement, and neither party to the Existing Agreement shall
have any further duties or responsibilities under the Existing Agreement as of the
effective date hereof.
7. NOTICES.
All written notices called for or required by this Agreement shall be addressed to the
following, or such other party or address as either party designates in writing, by certified
mail, postage prepaid, or by hand delivery:
City: Owner:
City of Fort Worth Zarif Inc.
Attn: City Manager Attn: Sam Khalil
1000 Throckmorton 2747 8t" Avenue
Fort Worth, TX 76102 Fort Worth, TX 76110
and
Housing Department
Attn: Jerome Walker
1000 Throckmorton
Fort Worth, TX 76102
8. MISCELLANEOUS.
8.1. Bonds.
The Required Improvements will not be financed by tax increment bonds. This
Agreement is subject to rights of holders of outstanding bonds of the City.
8.2. Conflicts of Interest.
Neither the Premises nor any of the Required Improvements covered by this Agreement
are owned or leased by any member of the City Council, any member of the City
Planning or Zoning Commission or any member of the governing body of any taxing
units in the Zone.
8
8.3. 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 "D",
the body of this Agreement shall control. As of June 6, 2006, the City is unaware of any
conflicts between this Agreement and the City's zoning ordinance or other ordinances or
regulations.
8.4. 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.
8.5. City Council Authorization.
This Agreement was authorized by the City Council through approval of Mayor and
Council Communication No. G21493 on June 13, 2006, which, among other things,
authorized the City Manager to execute this Agreement on behalf of the City.
8.6. Estoppel Certificate.
Any party hereto may request an estoppel certificate from another party hereto so long as
the certificate is requested in connection with a bona fide business purpose. The
certificate, which if requested will be addressed to the Owner, shall include, but not
necessarily be limited to, statements that this Agreement is in full force and effect
without default (or if an Event of Default exists, the nature of the Event of Default and
curative action taken and/or necessary to effect a cure), the remaining term of this
Agreement, the levels and remaining term of the Abatement in effect, and such other
matters reasonably requested by the party or parties to receive the certificates.
8.7. Owner Standin�.
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.
8.8. 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.
0
8.9. Recordation.
A certified copy of this Agreement in recordable form shall be recorded in the Deed
Records of Tarrant County, Texas.
8.10. 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.
8.11. 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.
8.12. 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.
[THE REMAINDER OF THIS PAGE IS 1NTENTIONALLY LEFT BLANK]
10
EXECUTED this ay of , 200 �by the City of Fort Worth,
Texas.
EXECUTED this day of
CITY OF FORT WORTH:
��_ �
By: �-'� `� �
Da1e A. Fissel� r
Assistant City Manager
ATTEST:
By:
City Secretary
APPROVED AS TO FORM AND LEGALITY:
�1,;l,�i��, �� �l ,, ,
By:�,r�(�,i;�,l,l � ( ��'(,i��,i /�,Lt
IS�ann Guzman '
Assistant City Attorney
M& C: l,_} ",� I� �( �
11
2006, by Zarif, Inc.
By: _--�_.����-'�"�
Samir Khalil �
President
�::: � i�' J�'. � �:;. l i?'S'� i�; .;:,i�
�' , s�,, ,,�,
��� u':' :�:s'V li 2I�;_';,,rl f
!�SIIj� 47!10
U�i �,f.�_ . j; J�� 4 iJVld
�: D
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Dale A.
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
%f ,
` l �� �-��l � �, 200�
� ' -
/ �:,
( L � �L'� %i _;�. %L„L� %�� .
Notary Public in and for
the State of Texas
Notary's Printed Name
ANA L. BRISENO
Notary Public, State of Tezas
��nmmission Fxpires
March 07, 2011
12
this ,.� � ��� day of
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Samir Khalil, 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 Zarif, Inc.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this � day of
_���� , 2006.
� � � � '
,-
N tary Public in and for
T�e State of Texas
� � �
Not ry's Printed Name
13
���'r��'� MATTIESANDEHS-MITCHELL
�" MY COMMISSION EXPIRES
'�3;�,'� March 17, 2p10
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 Site Plan & Independent Appraisal
14
Fxhll�lt nA��
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) TAX ABATEMENT POLICY AND BASIC
INCENTIVES
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:
(2) the creation of affordable housing, including manufactured housing, in the zone;
(3) an increase in economic development in the zone;
(4) an increase in the quality of social services, education, or public safety provided to
residents of the zone; or
(5) 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 granted 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 Government 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 property. 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 county 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 the 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.
"Capital Investment" 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).
Adopted October 4, 2005
"City of Fort Worth Tax Abatement Policy Statement" means the policy adopted by City Council
on February 29, 2000.
"Commercial/Industrial Development Project" is a development project which proposes to
construct or rehabilitate commercial/industrial 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 Project" is a development project which proposes to construct
or rehabilitate 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 Enterprise (MBE)" and "Women Business Enterprise (WBE)" is a minority or
woman owned business that has received certification as either a certified MBE or certified
WBE by either the North Texas Regional Certification Agency (NTRCA) or the Texas
Department of Transportation (TxDot), Highway Division.
"Mixed-Use Development Project" is a development project which proposes to construct or
rehabilitate mixed-use facilities 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 total 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.
"Multi-family Development Project" is a development project which proposes to construct or
rehabilitate 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 City of Fort Worth Zoning Ordinance.
"Project" means a "Residential Project'; "Commercial/Industrial Development
Project'; "Community Facility Development Project'; "Mixed-Use Development Project'; or a
"Multi-family Development Project."
"Reinvestment 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 zone pursuant to the Texas Enterprise Zone
Act, codified in Chapter 2303 of the Texas Government Code.
Adopted October 4, 2005 2
III. 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 homestead exemption; and
a. Property is rehabilitated after NEZ designation and City Council approval of the
tax abatement.
b. Homeowner must perform Eligible Rehabilitation ori the property after NEZ
designation equal to or in excess of 30% of the Base Value of the property; and
c. Property is not in a tax-delinquent status when the abatement application is
submitted.
0. For residential property purchased after NEZ designation, a homeowner shall be
eligible to apply for a tax abatement by meeting the following:
c. Property is constructed or rehabilitated after NEZ designation and City Council
approval of the tax abatement;
d. Property is owner-occupied and is the primary residence of the homeowner.
Homeowner shall provide proof of ownership by a warranty deed, afFdavit of
heirship, or a probated will, and shall show proof of primary residence by
homestead exemption;
e. 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;
f. Property is not in a tax-delinquent status when the abatement application is
submitted; and
g. 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:
Property is constructed or rehabilitated after NEZ designation and City Council
approval of the tax abatement;
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;
Property is not in a tax-delinquent status when the abatement application is
submitted; and
Property is in conformance with the City 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.
Adopted October 4, 2005 3
Abatements for multi-family development projects for up to 5 years are subject to
City Council approval. The applicant majr 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.
In order to be eligible for a property tax abatement upon completion, a newly
constructed or rehabilitated multi-family development project in a NEZ must satisfy
the following:
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 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% affordability 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 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 the rehabilitation of at least five (5) residential living units or
a minimum Capital Investment of $200,000.
2. 1%-100% Abatement of Citv Ad Valorem taxes up to 10 years
If an applicant applies for a tax abatement aqreement with a term of more than five
years, this section shall applv. .
Abatements 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 vaforem taxes
for years one through five of the Tax Abatement Agreement upon the satisfaction of
the following:
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 below eighty percent (80%) of area
median income based on family size and such units shall be set aside for
Adopted October 4, 2005 4
persons at or beiow 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, 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 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 the 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 of 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 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% affordability requirement on a case-by-case basis; and
1. 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
2. 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 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
Adopted October 4, 2005 5
1. 100% Abatement of Citv Ad Valorem taxes for 5 years
If an applicant applies for a tax abatement aclreement with a term of five vears or
less, this section shall applv.
Abatements for Commercial, Industrial and Community Facilities 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 abatement and be approved by City Council
before construction or rehabilitation is started.
In order to be eligible for a property tax abatement, a newly constructed or
rehabilitated commercial/industrial and community facilities development project in a
NEZ must satisfy the following:
a. A commercial, industrial or a community facilities development project
constructed after NEZ designation 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.
2. 1%-100% 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 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 Development 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 facilities development project
constructed after NEZ designation 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.
Adopted October 4, 2005 6
Years 6 throuqh 10 of the Tax Abatement Aqreement
Commercial, Industrial and Community Facilities Development projects shall be
eligible 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 subsection (c)
below ; or
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 and meet
the requirements of subsection (c) below.
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. 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 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 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 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;
and
(1) A mixed-use development project constructed after NEZ designation must
have a minimum Capital Investment of $200,000; or
Adopted October 4, 2005 �
(2) 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 $200,000, whichever is greater.
2. 1% 100% 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 apqly.
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 throuqh 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 retail 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 rehabilitated after NEZ designation. Eligible Rehabilitation costs on the
property shall be at least 30% of the Base Value of the property, or $200,000,
whichever is greater.
Years 6 throuqh 10 of the Tax Abatement Agreement
Mixed Use Development projects shall be eligible 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. 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 constructed 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 Rehabilitation costs on the
Adopted October 4, 2005 8
property shall be at least 30% of the 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 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.
E. ABATEMENT GUIDELINES
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 incentives 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 eligible to apply for a tax abatement under this Policy, the
Woodhaven Community Development Corporation and �he Woodhaven
Neighborhood Association must have submitted a letter of support for the Project to
the City of Fort Worth
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 Prope�ty;
and
3. the applicant enters into an agreement to 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 eligibfe for tax abatements.
�� -- -
r-9_ -: , D
'' ��1 �-'� a � ��, �����;1 J
�.; � f J r> �
�. - '�i'
�N��'�l ;� , �;!11 }� �'�� u;1
[ Y'.
v � �5
� j ,'',;'"�"Ci��� �u'���,�
� �� . vJ i �
Adopted October 4, 2005 � ---�_`
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 agreement 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
application.
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 applicable, and Sections
I I I. 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 of
Fort 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 City of Fort Worth's Minimum
Building Standards Code regarding 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 abatement agreement on the property for the remaining term.
8. If the terms of the tax abatement 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
compliance with the terms of the tax abatement agreement, (3) terminate the
agreement if the Project contains or will contain a sexually oriented business (4
terminate the agreement, as determined in City's sole discretion, if the Project
contains or will contain a liquor store or package store.
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
Adopted October 4, 2005 10
provide information and documentation which details the property owner's
compfiance 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 certification by the above deadline shall
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 agreement on the property for the remaining term. Any
sale, assignment or lease of the property which is not permitted in the tax abatement
agreement results in cancellation of the agreement and recapture of any taxes
abated after the date on which an unspecified assignment occurred.
F. APPLICATION FEE
1. An application fee of $25.00 for all basic incentives, excluding tax abatements.
2. The application fee for residential tax abatements governed under Section 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 Investment, with a$200
minimum not to exceed $2,000. The Application Fee shall not be credited or
refunded to any party for any reason.
IV. FEE WAIVERS
A. ELIGIBLE RECIPIENTS/PROPERTIES
1. City Council 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 submitted 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 property owner/developer to be eligible to apply for fee waivers for a
Project, the property owner/developer:
a. must submit an application to the City;
b. must not be delinquent in paying property taxes for any property owned by the
owner/developer or applicant;
Adopted October 4, 2005 11
c. must not have any City liens filed against any property owned by the applicant
property owner/developer, including but not limited to, weed liens, demolition
liens, board-up/open structure liens and paving liens; and
d. of a Project that will contain or contains a liquor store, package store or a sexually
oriented business has received City Council's determination that the Project is
eligible to apply for fee waivers.
Approval of the application and waiver of the fees shall not be deemed to be
approval of anv aspect of the Prolect. Before construction, the applicant 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 fees for services performed bv the Citv of Fort Worth for Projects in the NEZ
are waived for new construction projects or rehabilitation projects 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 application fee (including concept plan, preliminary plat, final plat, short form
replat)
3. Board of Adjustment application 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 FEES
1. Single family and multi-family residential development projects in the NEZ.
Automatic 100% waiver of water and wastewater impact fees will be applied.
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 two 6-inch meters for each commercial, industrial, mixed-use or
community facility development project.
b. If the project requests an impact fee waiver exceeding $55,000 or requesting a
waiver for larger and/or more than two 6-inch meter, then City Council approval is
required. Applicant may request the additional amount of impact fee waiver
through the Housing Department.
Adopted October 4, 2005 � 2
V. RELEASE OF CITY LIENS
A. ELIGIBLE RECIPIENTS/PROPERTIES
1. City Council 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 release of city liens under this Policy, the
Woodhaven Community Development Corporation and the Woodhaven
Neighborhood Association must have submitted 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 eligible to apply for a release of city
liens 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 delinquent 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 liens; and
d. of a Project that contains or will contain a liquor store, package store or a sexually
oriented business has 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 city 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
property.
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 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.
Ar3nnted October 4, 2005 13
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 property for a Project are eligible to
apply for release of demolition liens 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 performing 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
submit a City of Fort Worth Application for Tax Abatement" and pay the appropriate
app�ication fee to the Economic Development Office. The application fee, review,
evaluation and approval will be governed by City of Fort Worth Tax Abatement Policy
Statement for Qualifying Development Projects.
B. CERTIFICATIONS FOR APPLICATIONS UNDER SECTIONS III. IV, AND V
1. The Housing Department will review the application for accuracy and
completeness. Once the Housing Department determines that the application is
complete, the Housing Department will certify the property owner/developer's
eligibility to receive tax abatements and/or basic incentives based on the criteria set
Aci�nted October 4, 2005 14
forth in Section III., IV., and V. of this policy, as applicable. 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 departments 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, community facilities or mixed-use development projects.
a. Development Department: development fee waivers.
b. Water Department: impact fee waivers.
c. Other appropriate departments, if applicable.
2. Once Development Department, Water Department, Economic Development OfFice,
and/or other appropriate department receive a certified application from the Housing
Department, each department/office shall fill out a"Verification of NEZ Incentives for
Certified NEZ Incentives Application" and return it to the Housing Department for
record keeping and tracking.
A. APPLICATION REVIEW AND EVALUATION FOR APPLICATIONS
1. Property 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 application 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) Perce�t 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 Committee 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. Housing Department staff will
discuss the suggested modifications with the applicant and then, if the
A�1�„tec� (�ctober 4. 2005 15
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 City of Fort Worth is under no
obligation to provide tax abatement in any amount or value to any applicant.
a. 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.
1. Property Tax Abatement for Commercial, Industrial, Community Facilities, and
Mixed-Use Development Projects
a. For a completed and certified application for no more than �ve 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 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, the Economic Development
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 Committee 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
e �nnc 1R
(b)
(c)
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 consideration; or
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 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 applications 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.
1. Release of City Liens
For certified applications of release of City liens, the Housing Department will release
the appropriate liens.
VII. REFUND POLICY
In order for an owner/developer 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, aftached as Attachment "A", must be satisfied.
VIII. OTHER INCENTIVES
A. Plan reviews of proposed development projects in the NEZ wiil be expedited by the
Deve�opment 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 properties
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 (TIF)
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 to 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 the City Council Member for the District the Project is located and
upon the owner/developer providing proof that the owner/developer attempted to
meet with the neighborhood associations and the community 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
owner/developer within two weeks of initial contact.
c. The Public Notification Process listed in (a) and (b) above shall only apply to NEZs in
which the City 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
�Q
required for NEZ Incentives so long as the Project meets the criteria outlined in the
relevant NEZ Strategic Plan.
X. Ineliqible Proiects
The following Projects or Businesses shall not be eligible for any incentives under the City' of
Fort Worth's Neighborhood Empowerment Zone (NEZ) Tax Abatement Policy and Basic
I ncentives:
1. Sexually Oriented Businesses
2. Non-residential mobile structures
. ,,,,,,� � a
ATTACHMENT A
REFUND OF DEVELOPMENT AND IMPACT FEES POLICY
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).
Applicability
Unless expressly excepted, this policy applies to all development 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 sewer impact fees, up to
$55,000 for commercial, industrial, mixed-use or community 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 application fee (including concept plan, preliminary plat, final plat, short form
replat)
3. Board of Adjustment application 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.
To take advantage of these waivers, applicants 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 ; � �'"�' �;� �� ��`s;; � -`��'�;��'�
� '�,'ftJ;��,�:�� 1.��:���'����
�� v����l� .';:? � "''�� I �'�� ` �f
;.� ,,;;,,tr S��r1
� 7 ..;: �,. -��
i��� '�:>'�'::�r:�j�ii,''i �Ll,�
�
�� -
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 concerning 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
eligibility 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 Department 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 shall not qualify for any refund if:
a. The applicant was made aware of the NEZ incentives before he/she 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 b n� halltco t lol. In the event ofrany con'fl ct betwehen phiscY
such ordinances or regulatio
n�
policy and other policies or regulations adopted by the 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
2747 8th Avenue, Lot 14R1-R, Block 27, Being a Revision of Lot 14R1, Block 27, Ryan
Place Addition, Recorded in Cabinet A, Slide 10422, and Lot 22, Block 27, Ryan Place
Addition, Recorded in Volume 204-A, Page 170 in the City of Fort Worth, Plat Records,
Tarrant County, Texas.
�xf�� e�� �
�ORT WORTH
Application No. � � �� �
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) PROGRAM
PROJECT CERTIFICATION APPLICATION - FORM "C" FOR DEVELOPMENT PROJECTS
I. APPLICATION CHECK LIST
Please submit the following documentation:
� A completed application form
❑ A list of all properties owned by the applicant, owner, developer, associates, principals, partners, and
agents in Fort Worth
❑ Non Refundable Application fee — cashier's check or money order payable to the City of Fort Worth . For
all Basic Incentives applications excluding Tax Abatement $25.00. For multifamily, commercial, industrial,
commercial facilities, and mixed-use tax abatement applications: 0.5% of the total Capital Investment of
the project, with a$200.00 minimum and not to exceed $2,000.00; For residential tax abatement
applications: $100.00 per house.
�
�
�
Proof of ownership, such as a warranty deed, affidavit of heirship, or a probated will OR evidence of site
control, such as option to buy (A registered warranty deed is required for taz abatement application.)
Title abstract of the property (only if applying for release of City liens)
A completed set of development plans, project description and development budget or contractor's quote
❑ Met with the Councilmember and Neighborhood & other Organizations representing the NEZ as outlined
in the Public Notice requirement of the NEZ Policy and Guidelines revised Apri16, 2004 or followed
guidelines of NEZ Strategic Plan if a Strategic Plan is in place for the specific NEZ.
❑ Copy of Incorporation Papers noting all principals, partners, and agents
❑ Support letter from Woodhaven Neighborhood Association and Woodhaven Community Development
Corporation (For projects located in Woodhaven NEZ only)
INCOMPLETE APPLICATIONS WILL NOT BE PROCESSED FOR CERTIFICATION UNTIL ALL
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 BUSINESS DAYS TO COMPLETE THE TAX ABATEMENT AGREEMENT
APPROVAL PROCESS AFTER THE ISSUANCE OF NEZ CERTIFICATION DEPENDING ON THE
COMPLEXITY OF YOUR PROJECT.
II. APPLICANT / AGENT INFORMATION � e LG (� �� 7� � 1� I E i3
1. Applicant: �A 2�' f f�� � 2• Contact Person: �� M ��� � L�f �
�
3. Address: 27 �-1 `7 �' ��, .,q ��� � �,�2 i ��%O.�H �}( `%� l / O
Street City State Zip
4. Phone no.: � j�� ) 33 � � 7�'S 5. Fax No.: �-�� -1 "� Z a=�7 ��Z- 7
6. Email: �S�K N�#L-1 L— � S�s � C3-L:. b� L ,�'c� �'
7. Agent (if any) �� �
8. Address:
Street City State Zip
9. Phone no.: 10. Fax No.:
11. Email:
If you need further information or clarification, please contact Sarah Odle at (817) 392-7316.
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.
Table 1 Pro er Uwnershi
Address Zip T eual neccrintinn
(Pro'ect Location Code Subdivision Name Lot No. Block No.
2�� i �7 �' ��� � ��-e 7d �ro �Z ,..� �� ,� C� � z y �7
'� � � �
Other pr perties owned ifl the City of Fort Worth - continue on a separate sheet and attach if necessary.
z7�� ��� A✓z %��f� ,a� � et� ��f�� �7
i � � � $��. ,�� 7� �a� �;s°s�� �.� i`�,� �rs� � �
(Please attach additional sheets of paper as needed.)
2. For each properties listed in Table 1, please check the boxes 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.
Table 2 Pro er Taxes and Ci Liens
Address Property City Liens on Property
Taxes Weed Board-up/Open Demolition Paving Order of
Due Liens Stucture Liens Liens Liens Demolition
❑ ❑ ❑ ❑ ❑ ❑
❑ ❑ ❑ ❑ ❑ ❑
❑ ❑ ❑ ❑ ❑ ❑
❑ ❑ ❑ ❑ ❑ ❑
❑ ❑ ❑ ❑ ❑ ❑
❑ ❑ ❑ ❑ ❑ ❑
❑ ❑ ❑ ❑ ❑ ❑
❑ ❑ ❑ ❑ ❑ ❑
❑ ❑ ❑ ❑ ❑ ❑
❑ ❑ ❑ ❑ ❑ ❑
(Please attach additional sheets of paper as needed.)
FORT WORTH
3. Do you own other properties under other names?
If Yes, please specify
Application No.
� Yes ❑ No
4. Does the proposed project conform with City of Fort Worth Zoning?
If no, what steps are being taken to insure compliance?
5. Project Type: ❑ ❑ � ❑
Single
Family
Multi- Commercial Industrial
Family
'� Yes ❑ No
❑ ❑
Community Mixed-Use
Facilities
,
6. If your project is a commercial, industrial, or mixed-use project, please describe the types of
businesses that are being proposed:
� � C.- E�,�9 �r..� T
7. Is this a new construction or rehab project?
❑ New Construction � ❑ Rehab
8. How much is the total development cost of your project? �A �s� �, ��}
9. Will the eligible rehabilitation work* equal to at least 30% of the Tarrant Appraisal District (TAD)
assessed value of the structure during the year rehabilitation occurs? � Yes ❑ No
* Eligible rehabilitation includes only physical improvements to real property. It does NOT include personal
property such as furniture, appliances, equipment, and/or supplies. Total eligible rehabilitation costs shall equal to
or exceed 30% of the TAD appraised value of the structure during the year rehabilitation occurs.
10. Fiow much is the total square footage of your project? square feet
-t-- �-- � j a a �
11. For a single familv homeownership, mixed-use, or multi-familv development proiect, please fill out the
number of residential units based on income range of owners or renters in the following table.
Table 3 Number of Residential Units and Income
> 80% of AMFI* *
At or below 80% of AMFI
of Owners or Renters
**AMFI: Area Median Family Income. Please see attachment for income and housing payment guidelines.
12. For a multifamilv nroiect to be qualified for tax abatement, at least 20% of total units shall be
affordable to families at or below 80% of AMFI. Check the box if you are requesting a waiver of this
requirement. ❑
13. For a commercial, industrial or community facilities project, indicate square footage of non-
residential space.
Commercial Industrial Community Facilities
�,<_� �� a� square feet square feet square feet
PLEASE AN5WER QUESTIONS N0.14 TO NO. 16 ONLY IF YOU ARE APPLYING FOR TAX
ABATEMENT.
FORT WORTH
Application No.
14. How much will be your Capital Investment*** on the project? Please use the following table to
provide the details and amount of your Capital Investment (Attached additional sheets if necessary).
***Capital Investment includes only real property improvements such as new tacil►ties and structures, srte improvements, Tacility
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 or inventory).
15. For a commercial, industrial, community facilitv or mixed-use proiect, how many employees will the
project generate? %Z
16. For a mixed-use proiect, please indicate the percentage of all uses in the project in the following table.
Table 5 Percenta�e of Uses in a Mixed-Use Project
III. INCENTIVES
1. What incentives are you applying for?
Municipal Propertv Tax Abatements
Must provide Final Plat Cabinet and Slide for Tax Abatement Cabinet Slide
� 5 years ❑ More than 5 years
Development Fee Waivers
0 All building permit related fees (including Plans Review and Inspections)
Plat application fee (including concept plan, preliminary plat, final plat, short form replat)
Board of Adjustment application fee
Demolition fee
Structure moving fee
Community Facilities Agreement (CFA) application fee
Zoning application fee
Street and utility easement vacation application fee
Impact Fee Waivers
� Impact fee _
Release of Citv Liens
❑ Weed liens
❑ Board up/open structure liens
Meter Size
No. of ineters?
❑ Paving liens
❑ Demolition liens
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 City and in
ensuring the project is located in the correct zoning district.
I understand that my application will not be processed if it is incomplete. I agree to provide any additional
information for determining eligibility as requested by the City.
�,.� l�W��r1.�
l
/ D�z � �o S
(TYPED NAME) (AUTHORIZ�ED SIGNATURE) (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 �l
Application No. ... 7in which NEZ? �,�J • Council District �7
Application Completed Date (Received Date): U�..-p�� Conform with Zoning? ❑ Yes ONo
Type? ❑ SF ❑ Multifamily �Commercial ❑ Industrial ❑ Community facilities ❑ Mixed-Use
Construction completion date? �❑ Before NEZ ❑ After NEZ Ownership/Site Control ❑ Yes � No
TAD Account No. �����g �D � Consistent with the NEZ plan? 0'�es ❑ No
Meet affordability test? ❑ Yes ❑ No Minimum Capital Investment? ❑ Yes ❑ No
Rehab at or higher than 30%? ❑ Yes ❑ No Meet mixed-use definition? ❑ Yes ❑ No
Tax current on this property? �es ❑ No Tax current on other properties? [V]'Y'�es ❑ No
City liens on this property?
• Weed liens ❑ �'e
• Board-up/open struciure liens ❑ Ye
• Demolition liens ❑ Ye
• Paving liens ❑ Ye
• Order of demolition ❑ Ye
Certified? (�Yes ❑ No Certified by
If not certified, reason
s �o
s No
s [�To
s
s No
City liens on other properties?
• Weed liens
• Board-up/open structure liens
• Demolition liens
• Paving liens
• Order of demolition
Date certification issued?
❑ Yes
❑ Yes
❑ Yes
❑ Yes
❑ Yes
0
Referred to: ❑Economic Development ❑Housing ❑Development ❑Water ❑Code ❑TPW
FORT WORTH
Application No.
ATTACHMENT INCOME AND HOUSING PAYMENT GUIDELINES
Family Size SO% of Median Income* Magimum Housing Payment Affordable for
2
0
6
7
8
$35,100
$40,150
$45,150
$50,150
$54,150
$58,200
$62,200
$66,200
* Source: 2004 Fort Worth-Arlington PMSA HUD Income Guidelines
Individuals or Families
at 80% of Median Income
$877
$1,003
$1,128
$1,253
$1,353
$1,455
$1,555
$1,655
Exhibit "D"
Proiect Description
Rehabilitation and expansion
Single-story professional office/retail building
Brick and stone exterior
6630 square feet
Addition of landscape & plant areas
Addition of Monument sign
City of Fort Worth, Texas
Mayor and Council Communication
- - _. -� r � � - - - -- - - -
.- , . _ -------- �_�_._� __:---
�.�_ _W_ __1
� �_� � _. __. � _ � � _. _ _ _� ._ -- - - � _ _ _� __ _ . _-- -_ . _ _ _� __ _-
COUNCIL ACTION: Approved on 6/13/2006 - Ordinance No. 16989-06-2006
___.' _.._ __. � . _�, ._. ....i..:'- � -��-_.-.- _.:�-"._:.�� — ... . .... - . .: _ ... .,.a.,._ . ..-..". _"' '_' «. .__.._-. _ ,...._ ._>:.-..' _- _.-.., -.. _-=...4
DATE: Tuesday, June 06,
LOG NAME: 05ZARIF2
CONTINUED FROM A PREVIOUS WEEK
2006
REFERENCE NO.: C-21493
SUBJECT:
Approve Termination of Existing Tax Abatement Agreement with Zarif, Inc.,
Neighborhood Empowerment Reinvestment Zone Number 23, Adopt Ordinance tc
Worth Neighborhood Empowerment Reinvestment Zone Number 29 and Authorize
Agreement with Zarif, Inc., for Property Located at 2747-8th Avenue, in the
Neighborhood Empowerment Zone
for Fort Worth
Designate Fort
Tax Abatement
Berry/University
,.;6:- - - .._ � .___ _._._u_ ._�. _ .�y_� __�_-� -___ ._-. -.��___._ �._.-_.___,
, . �.. . , .. . ..�,_;._ �. .,.�. � , , . . . _.
RECOMMENDATION:
It is recommended that the City Council:
1. Approve termination of the existing tax abatement agreement with Zarif, Inc., for Fort Worth
Neighborhood Empowerment Reinvestment Zone (FWNEZ) Number 23;
2. Hold a public hearing concerning the designation of 1.371 acres of land as described in Exhibit "A" as
FWNERZ Number 29;
3. Adopt the ordinance to designate the area as FWNERZ Number 29 pursuant to the Texas Property
Redevelopment and Tax Abatement Act, Tax Code, Chapter 312;
4. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement (the
Agreement) with Zarif, Inc., are true and correct; .
5. Approve a five-year Municipal Property Tax Abatement for a property located at 2747 8th Avenue in
the Berry/University Neighborhood Empowerment Zone (NEZ) owned by Zarif, Inc.; and
6. Authorize the City Manager to enter into the Tax Abatement Agreement with Zarif, Inc., for the property
located at 2747 8th Avenue in the Berry/University 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 Empowerment Zone.
Zarif, Inc., is the owner of the property located at 2747-8th Avenue. The property is located in the Berry/
University NEZ Zarif, Inc., applied for a five-year municipal property tax abatement under the NEZ Tax
Abatement Policy and Basic Incentive. These incentives were readopted on October 4, 2005, (M&C G-
14947). The Housing Department reviewed the application and certified that the property met the eligibility
criteria to receive NEZ municipal property tax abatement. The NEZ Basic Incentive includes a five-year
municipal property tax abatement on the increased value of improvements to the qualified owner of any
Logname: OSZARIF2 Page 1 of 3
new construction or rehabilitation within the NEZ.
In 2005 Zarif, Inc., was granted a NEZ tax abatement on a property adjacent to 2747-8th Avenue, which
was designated as FWNERZ 23. To date, improvements have not been started in FWNERZ 23. The
property has been enlarged and replatted and a new construction budget has been obtained by Zarif,
Inc. For the replatted property, Zarif, Inc., will invest, at a minimum, $277,000 to expand a professional
office and retail center. The project description and picture of the shopping center layout are attached as
Exhibit "B."
City staff recommends that City Council designate the 1.371 acre tract (2747-8th Avenue) described in the
attached Ordinance as FWNERZ Number 29. Further, the original tax abatement agreement for FWNERZ
23 should be terminated and a new tax abatement agreement should be executed with Zarif, Inc., for
FWNERZ 29 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 for a period of five years, starting on January 1, 2007, at the estimated
pre-improvement value as defined by the Tarrant Appraisal District (TAD) on January 1, 2006, for the
property as follows:
Pre-Improvement TAD Value of Improvements
Pre-Improvement Estimated Value of Land
Total Pre-Improvement Estimated Value
$288,990.00
$770,160.00
$1,059,150.00
The municipal property tax on the improved value of the property is estimated at $1677.00 per year for a
total of $8385.00 over a five-year period. However, this estimate may differ from the actual tax abatement
value, which will be calculated based on the TAD appraised value of the property.
In the event of a sale of the property, the agreement may be assigned, with City Council approval, to.the
new owner(s), so long as the new owner(s) 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 proposed 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 29 expires after five years and may be renewed for periods not to exceed
five years.
This property is located in COUNCIL DISTRICT 9.
FISCAL INFORMATION/CERTIFICATION:
Logname: OSZARIF2 Page 2 of 3
The Finance Director certifies that this action will have no material effect on city funds.
TO Fund/Account/Centers
Submitted for City Manager's Office bv:
Originating Department Head:
Additional Information Contact:
FROM Fund/Account/Centers
Dale Fisseler (6140)
Jerome Walker (7537)
Sarah Odle (7316)
Logname: OSZARIF2 Page 3 of 3