HomeMy WebLinkAboutContract 35595~iTY SECRETARY -'
CONTRACT NO.
TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A
NEIGHBORHOOD EMPOWERMENT ZONE
2701 E. Rosedale
This TAX ABATEMENT AGREEMENT ("Agreement") is entered into by and
between the CITY OF FORT WORTH, TEXAS ("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 Shahnaz B. Chowdhury ("Owner"), owners of property
located at 2701 E. Rosedale, Block 10, Lot 20R, Boaz & Dillow Addition, Being a revision of
the west 474/2 feet of Lot 20 and Lots 21 and 22, according to the Plat recorded in Volume 204,
Page 32, Plat Records, Tarrant County, Texas.
The City Council of the City of Fort Worth ("City Council") hereby finds and the City
and Owner hereby agree that the following statements are true and correct and constitute the
basis upon which the City and Owner have entered into this Agreement:
A. Chapter 378 of the Texas Local Government Code allows a municipality to create a
Neighborhood Empowerment Zone (NEZ) if the municipality determines that the
creation of the zone would promote.
(1) The creation of affordable housing, including manufactured housing in the
zone;
(2) An increase in economic development in the zone;
(3) An increase in the quality of social services, education, or public safety
provided to residents of the zone; or
(4) The rehabilitation of affordable housing in the zone.
B. Chapter 378 of the Texas Local Government Code provides that a municipality that
creates a NEZ, may enter into agreements abating municipal property taxes on
property in the zone.
C. On July 31, 2001, the City adopted basic incentives for property owners who own
property located in a NEZ, stating that the City elects to be eligible to participate in
tax abatement and including guidelines and criteria governing tax abatement
agreements entered into between the City and various third parties, titled "NEZ
Basic Incentives", which were readopted October 4, 2005 (M&C G-14947) ("NEZ
Incentives"). The NEZ Incentives are attached hereto as Exhibit "A" hereby made
apart 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 ("Code").
E. On November 26, 2002, the City Council adopted Ordinance No. 15344 (the
"Ordinance") establishing "Neighborhood Empowerment Reinvestment Zone No.
65" City of Fort Worth, Texas (the "Zone").
F. Owner owns certain real property located entirely wn the PolyLechnic/Wesleyan
NEZ and that is more particularly described in Exhibit "B", attached hereto and
hereby made a part of this Agreement for all purposes (the "Premises").
G. Owner or its assigns plan to construct the Required Improvements, as defined in
Section 1.1 of this Agreement, on the Premises to be used as a single-family
residence that will be Owner occupied (the "Project").
H. On June 13, 2006, Owner submitted an application for NEZ incentives and for tax
abatement to the City concerning the contemplated use of the Premises (the
"Application"), attached hereto as Exhibit "C" and hereby made a part of this
Agreement for all purposes.
I. The City Council finds that the contemplated use of the Premises, the Required
Improvements, as defined in Section 1.1, and the terms of this Agreement are
consistent with encouraging development of the Zone in accordance with the
purposes for its creation and are in compliance with the NEZ Incentives, the
Ordinance and other applicable laws, ordinances, rules and regulations.
J. The terms of this Agreement, and the Premises and Required Improvements, satisfy
the eligibility criteria of the NEZ Incentives.
K. Written notice that the City intends to enter into this Agreement, along with a copy
of this Agreement, has been furnished in the manner prescribed by the Code to the
presiding officers of the governing bodies of each of the taxing units in which the
Premises is located.
NOW, THEREFORE, the City and Owner, for and in consideration of the terms and
conditions set forth herein, do hereby contract, covenant and agree as follows:
1. OWNER'S COVENANTS.
1.1. Real Property Improvements.
Owner shall construct, or cause to be constructed, on and within the Premises
certain improvements consisting of a single-family residence (collectively, the
"Required Improvements"), (i) of at least 3200 square feet in size and built to the
3.
If the square footage requirement and the appraised value of the Required Improvements
are less than as provided in Section 1.1 of this Agreement, Owner shall not be eligible to
receive any Abatement under this Agreement.
2.2 Increase in Value.
The abatement shall apply only to taxes on
due to construction of the Required Improvements
Land
2.3. Terms of Abatements.
the increase in value of the Premises
and shall not apply to taxes on the
The term of the Abatement (the "Term") shall begin on January 1 of the year
following the calendar year in which the Required Improvement is completed and, unless
sooner terminated as herein provided, shall end on December 31 immediately preceding
the fifth (5") anniversary of the Beginning Date.
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. Abatement Application Fee.
The City acknowledges receipt from Owner of the required Application fee of
$125.00. The application fee shall not be credited or refunded to any party for any
reason.
RECORDS, AUDITS AND EVALUATION OF PROJECT.
3.1. Inspection of Premises.
Between the execution date of this Agreement and the last day of the Term, at any
time during normal office hours throughout the Term and the year following the Term
and following reasonable notice to Owner, the City shall have and Owner shall provide
access to the Premises in order for the City to inspect the Premises and evaluate the
Required Improvements to ensure compliance with the terms and conditions of this
Agreement. Owner shall cooperate fully with the City during any such inspection and/or
evaluation.
3.2. Certification.
Owner shall certify annually to the City that it is in compliance with each applicable
term of this agreement. The City shall have the right to audit at the City's expense the
Required Improvement with respects to the specifications listed in Exhibit D. Owner must
4.2. Notice to Cure.
Subject to Section 5, if the City determines that an Event of Default has occurred,
the City shall provide a written notice to Owner that describes the nature of the Event of
Default. Owner shall have ninety (90) calendar days from the date of receipt of this
written notice to fully cure or have cured the Event of Default. If Owner reasonably
believes that Owner will require additional time to cure the Event of Default, Owner shall
promptly notify the City in writing, in which case (i) after advising the City Council in an
open meeting of Owner's efforts and intent to cure, Owner shall have one hundred eighty
(180) calendar days from the original date of receipt of the written notice, or (ii) if Owner
reasonably believes that Owner will require more than one hundred eighty (180) days to
cure the Event of Default, after advising the City Council in an open meeting of Owner's
efforts and intent to cure, such additional time, if any, as may be offered by the City
Council in its sole discretion.
4.3. Termination for Event of Default and Payment of Liquidated Damages.
If an Event of Default which is defined in Section 4.1 has not been cured within
the time frame specifically allowed under Section 4.2, the City shall have the right to
terminate this Agreement immediately. Owner acknowledges and agrees that an uncured
Event of Default will (i) harm the City's economic development and redevelopment
efforts on the Premises and in the vicinity of the Premises; (ii) require unplanned and
expensive additional administrative oversight and involvement by the City, and (ill)
otherwise harm the City, and Owner agrees that the amounts of actual damages therefrom
are speculative in nature and will be difficult or impossible to ascertain. Therefore, upon
termination of this Agreement for any Event of Default, Owner shall pay the City, as
liquidated damages, all taxes that were abated in accordance with this Agreement for
each year when an Event of Default existed and which otherwise would have been paid to
the City in the absence of this Agreement. The City and Owner agree that this amount is
a reasonable approximation of actual damages that the City will incur as a result of an
uncured Event of Default and that this Section 4.3 is intended to provide the City with
compensation for actual damages and is not a penalty. This amount may be recovered by
the City through adjustments made to Owner's ad valorem property tax appraisal by the
appraisal district that has jurisdiction over the Premises. Otherwise, this amount shall be
due, owing and paid to the City within sixty (60) days following the effective date of
termination of this Agreement. In the event that all or any portion of this amount is not
paid to the City within sixty (60) days following the effective date of termination of this
Agreement, Owner shall also be liable for all penalties and interest on any outstanding
amount at the statutory rate for delinquent taxes, as determined by the Code at the time of
the payment of such penalties and interest (currently, Section 33.01 of the Code).
THE FAILURE OF OWNER TO SEND THE CITY NOTIFICATION OF THE SALE OF
THE REQUIRED IMPROVEMENTS AND EXECUTION OF THE ASSIGNMENT OF
THIS AGREEMENT WITH THE NEW OWNER WITHIN 30 DAYS OF THE TRANSFER
OF OWNERSHIP OF THE REQUIRED IMPROVEMENTS SHALL RESULT IN THE
AUTOMATIC TERMINATION OF THIS AGREEMENT. THE NOTICE AND
EXECUTED ASSIGNMENT MUST BE SENT TO THE CITY BY CERTIFIED MAIL OR
BY HAND DELIVERY.
6. NOTICES.
All written notices called for or required by this Agreement shall be addressed to the
following, or such other party or address as either party designates in writing, by certified mail,
postage prepaid, or by hand delivery:
City:
City of Fort Worth
Attn: Housing Department
1000 Throckmorton
Fort Worth, TX 76102
And
Housing Department
Director
1000 Throckmorton
Fort Worth, Texas 76102
7. MISCELLANEOUS.
Owner:
Shahnaz B. Chowdhury
2701 E Rosedale Street
Fort Worth, TX 76105
7.1. Bonds
The Required Improvements will not be financed by tax increment bonds. This
Agreement is subject to the rights of holders of outstanding bonds of the City.
7.2. Conflicts of Interest.
Neither the Premises nor any of the Required Improvements covered by this
Agreement are owned or leased by any member of the City Council, any member of the
City Plan or Zoning Commission or any member of the governing body of any taxing units
in the Zone.
7.3. Conflicts Between Documents.
In the event of any conflict between the City's zoning ordinances, or other City
ordinances or regulations, and this Agreement, such ordinances or regulations shall control.
In the event of any conflict between the body of this Agreement and Exhibit "C", the body
of this Agreement shall control.
7.10. Severabinty.
If any provision of this Agreement is held to be invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions shall not in any way
be affected or impaired.
7.11 Headings Not Controlling.
Headings and titles used in this Agreement are for reference purposes only and
shall not be deemed a part of this Agreement.
7.12. Entirety of Agreement.
This Agreement, including any exhibits attached hereto and any documents
incorporated herein by reference, contains the entire understanding and agreement
between the City and Owner, their assigns and successors in interest, as to the matters
contained herein. 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.
&4.EXECUTED this day of , 2007, by the City of Fort Worth,
Texas.
EXECUTED this ay of � A) ►r E , 2007, by Shahnaz B. Chowdhury.
CITY OF FORT WORTH:
By:
Assistant City Manager
ATTEST:
W)I,City Secretary
APPROVED AS TO FORM AND LEGALITY:
Leann Guzman
Assistant City Attorney
00
OWNER:
By: f��iy t5 • ��AU�
Shahnaz B. Chowdhury
Owner
�. W00H, Ili.
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Dale Fisseler;
Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation, known to me to
be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged
to me that the same was the act of the said CITY OF FORT WORTH, TEXAS, a municipal
corporation, that he was duly authorized to perform the same by appropriate resolution of the City
Council of the City of Fort Worth and that he executed the same as the act of the said City for the
purposes and consideration therein expressed and in the capacity therein stated.
GIVEN UNDER
Notary Public in and for
the State of Texas
Notary's Printed Name
MY
2007.
HAND AND SEAL OF OFFICE
At�A 1. �RISENo
Notary Public, Sta of Texas
omission Expires
March 07, 2011
thisday of
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Shahnaz B. Chowdhury5
known to me to be the person whose name is subscribed to the foregoing instrument, and
acknowledged to me that he executed the same for the purposes and consideration therein
expressed, in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this D day of
in and for
the State of Texas
Notary's Printed Name
Exhibit A: NEZ Incentives
Exhibit B: Property Description
Exhibit C: Application: (NEZ) Incentives and Tax Abatement
Exhibit D: Project description including kind, number and location of the proposed
improvements.
Exhibit E: Final Survey
"City of Fort Worth Tax Abatement Policy Statement" means the policy adopted by City Council
on February 29, 2000.
"Commercial//ndustrial 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" includes only physical improvements to real property. Eligible
Rehabilitation does NOT include personal property (such as furniture, appliances, equipment,
and/or supplies).
"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 Govemment Code.
Adopted October 4, 2005 2
Abatements for multi -family development projects for up to 5 years are subject to
City Council approval. The applicant may apply with the Housing Department for
such abatement.
The applicant must apply for the tax 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 amulti-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 City Ad Valorem taxes up to 10 vears
If an applicant applies for a tax abatement aaaeement with a term of more than five
vears, this section shall apply. .
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 throuah 5 of the Tax Abatement Agreement
Multi -family projects shall be eligible for 100% abatement of City ad valorem 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
A dn»ted (�ct�her 4. 2005 4
1. 100% Abatement of City Ad Valorem taxes for 5 vears
If an applicant applies for a tax abatement agreement with a term of five vears or
less, this section shall apply.
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 commercialrndustrial 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 City Ad Valorem taxes up to 10 vears
vears this section shall apply.
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 through 5 of the Tax Abatement Agreement
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.
da�,r,fPrl (lrtnhar d 7M5
2.
(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.
of
C�7
years this section shall apply.
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 through 5 of the Tax Abatement Agreement
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, andlor retail sales and service uses in the
project constitute 10 percent or more of the total Gross Floor Area of the project;
and
c. Anew 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.
1 GGII V V �I �. vw .. . � �. �.._ _._ _ _ _.
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. Anew 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
Actr,nted 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
III.E.1 E.2; and E3. and
b. File an application with the Housing Department, as applicable; and
c. The property owner must enter into a tax abatement agreement with the City 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 years) 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 1st of every year during the life of the agreement, any
individual or entity receiving a tax abatement from the City of Fort Worth shall
Ad�nted October 4.2005 10
C.
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 any aspect of the Project Before construction, the applicant must
ensure that the project is located in the correct zoning district.
DEVELOPMENT FEES
Once the Application for NEZ Incentives has been approved and certified by the City, the
following fees for services performed by the City 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,
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
short form
Other development related fees not specified above will be considered for approval by
City Council on a case -by -case basis.
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
NEZ.
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.
e!i„r,+Pri flr�i-nhar d �nn5 12
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.
p. BOARD-UPIOPEN 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
VI.
A.
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,
' f 'lit ro erties
industrial, mixed -use,
or community aci y p p
4. Developers constructing multi -family, commercial, industrial,
community facility projects.
PROCEDURAL STEPS
mixed -use, or
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
application 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.
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 ownerpde'velo er's
complete, the Housing Department will certify the property P
eligibility to receive tax abatements and/or basic incentives based on the criteria set
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 five years of tax
abatement, with Council approval, the City Manager shall execute a tax
abatement agreement with the applicant.
b. For a completed and certified application for more than five years of tax
abatement:
(1) The Economic Development Office will evaluate a completed and certified
application based on:
(a) The project's increase in the value of the tax base.
(b) Costs to the 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 Counci( with the
Committee's recommendation to approve the agreement; or
VIII. OTHER INCENTIVES
A. Plan reviews of proposed development projects in the NEZ will be expedited by the
Development Department.
B. The City Council may add the following incentives to a NEZ in the Resolution adopting
the NEZ:
1. Municipal sales tax refund
2. Homebuyers assistance
3. Gap financing
4. Land assembly
5. Conveyance of tax foreclosure 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
ATTACHMENT A
REFUND OF DEVELOPMENT AND IMPACT FEES POLICY
Purpose
refund policy is for the purpose of establishing the conditionsdthrough h therwhich the Neighborhoo'ty
This p Y
may refund development and impact fees, normally waive g
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
d in a
autho
rized to waive impact and development fees for auag c edprojects iact feese up to
r I
designated NEZ. The impact fees include only water nity facilities projects. The
$55,000 for commercial, industriaiv dth through the NEZ dommuse or inc include:
development fees that can be wa
1. All building permit fees (including Plans Review and Inspections)plat) final plat, short form
2. Plat application fee (including concept plan, preliminary p
replat)
3. Board of Adjustment application fee
4. Demolition fee
5. Structure moving fee application fee
6. Community Facilities Agreement (CFA) a pp
7. Zoning application fee application fee.
8. Street and utility easement vacation
iicants need to obtain a certification letter from
To take advantage of these wavers, appl
the Housing Department.
Conditions for Refunds
' consider refunds only when circumstances beyonod n Departmentontrol
The City Willualification letter from the H s g
prevent them from obtaining the q
owner and/or developer may qualify for a refund if the proposed
A property
project meets all criteria to receive a fee waiver under the NEZ ax
development
Abatement and Basic Incentives Policy and:
a. Th
e owner and/or developer was not made aware of the NEZ incentives at the
time the fees were paid; or was not in
b. The owner and/or developer was mistakenly told that his/her property
a designated NEZ; or
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.
FORT WORTH
Application No. PW~Avmotn
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) PROGRAM
PROJECT CERTIFICATION APPLICATION - FORM "A" FOR HOMEOWNERS
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
Proo 0 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 tax abatement application.)
❑ 1: Title abstract of the property (only if applying for release of City liens)
r A completed set of development plans, project description and development budget or contractor's quote
❑ Copy of Incorporation Papers noting all principals, partners, and agents
Met with the Councilmember and Neighborhood & other Organizations representing the NEZ as outlined
in the Public Notice requirement of the NEZ Policy and Guidelines revised April 6, 2004 or followed
guidelines of NEZ Strategic Plan if a Strategic Plan is in place for the specific NEZ.
❑ 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 MUST 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. A (/
II. APPLICANT /AGENT INFORMATION
1. Applicant: S HA 141VA Z d )V6WP1111 9
3. Address:
4. Phone no.:
6. Email:
7. Agent (if any)
8. Address:
9. Phone no.:
11. Email:
Contact Person: XCHA A114AP /P!1/-/MAA1
�7QC? E. RC���'bA��.3s% RTi�,rc�RiH'
Street City State Zip
�o j 5. FaxNo.:
Lay
Street
City State Zip
10. Fax No.:
If you need
further information or clarification, please contact Mattie Sanders -Mitchell at (817) 392-7336 or
Sarah Odle at (817) 392-7316.
Foe_ T�H
3. Do you own other properties under other names?
If Yes, please specify
Application No.
4. Does the proposed project conform with City of Fort Wnrth Zoning? � Yes ❑ No
If no, what steps are being taken to insure compliance?
5. Project Type: [� ❑ ❑
Single Multi- Commercial
Industrial
❑�
Community
Mixed -Use
Family Family Facilities
6. If your project is a commercial, industrial, or mixed -use project, please describe the types of
businesses that are being proposed:
7. Is this a new construction or rehab project?
New Construction
❑ Rehab
8. How much is the total development cost of your project?
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:
Front yard fencing consisting of chain -link or solid material construction; 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. How much is the total square footage of your project? �' � � .f— square feet
11. For a single family homeownership, mixed -use, or multi -family development project, 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 Ran a of Owners or Renters
- -- - .'._ .rr _ � .:Numberof Uiuts x ,, � Percentage . .
. -�
.. .�..,
. ,.:., ;;
-> ;� . - -
4 e � i
�:-. . . .' .. .f.�-�.�..:� .�. 'n � - -
��
i
—'--�----r .. ._ F
> 80% of AMFI*
At or below 80% of AMFI
nits`.° - - - - - � . . - - - _ - -
`" �ot�l� LT
**AMFI: Area Median Family Income. Please see attachment for income and housing payment guidelines.
12. For a multifamily project 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 commercl�> ;n.�»�tr;a1 nr Cnmmunity facilities prof ,indicate square footage of non-
residential space.
(`..m m c>rr i a �
Industrial
Community Facilities
FoR, T� H
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.
SHAti�1�2 e�aw�Ht��
(TYPED NAME)
(AUTHORIZED S!(T1VA
'' , Please
City 6f F
1000 Throckin
F
(DATE)
l or fag your application to `-: _ � . , ..
Vorth,`Housing Depar..tineut'
on Street, Fort Worth, Texas 761-02-
817) 392. 732$:.
Electronic version of this form is available by request. Please ca11817-392-7507 to request a copy. For more
information on the NEZ Program, please visit our web site at www.fortworthgov.org/housing.
For Office Use Only
Application No. In which NEZ? Council District
Application Completed Date (Received Date): Conform with Zoning? ❑Yes ❑No
Type? ❑ SF ❑ Multifamily ❑ Commercial ❑ Industrial ❑ Community facilities ❑ Mixed -Use
Construction completion date? ❑ Before NEZ ❑ After NEZ Ownership/Site Control ❑ Yes ❑ No
El
TAD Account No.
Meet affordability test? ❑Yes
Rehab at or higher than 30%? ❑Yes
Tax current on this property? ❑ Yes
City liens on this property?
• Weed liens ❑ Yes
• Board-up/open structure liens El Yes
• Demolition liens ❑ Yes
• Paving liens
• Order of demolition
Certified? ❑ Yes [:]No
If not certified, reason
❑ Yes
❑ Yes
Certified by
Consistent with the NEZ plan? ❑Yes
Minimum Capital Investment? ❑ Yes
Meet mixed -use definition? ❑ Yes
Tax current on other properties? ❑ Yes
No
❑ No
❑ No
ElNo
City liens on other properties?
• Weed liens ❑Yes ❑ No
• Board-up/open structure liens ❑ Yes ❑ No
• Demolition liens ❑ Yes ❑ No
• Paving liens ❑ Yes ❑ No
• Order of demolition ❑ Yes ❑ No
Date certification issued?
Referred to:
❑W
ater
❑TPW
Page 1 of 2
City of Fort Worth, Texas
• •11 11• 111, 1 1 111 1 1 v*111111•
DATE: Tuesday, August 15, 2006
LOG NAME: 05CHOWDHURY
REFERENCE NO.: C-21617
SUBJECT:
Authorization to Enter into a Five -Year Tax Abatement Agreement with Shahnaz B.
Property Located at 2701 East Rosedale Street in the Polytechnic/Wesleyan
Empowerment Zone
RECOMMENDATION:
It is recommended that the City Council:
Chowdhury
, for
Neighborhood
1. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement (the
agreement) with Shahnaz B. Chowdhury are true and correct; and
2. Authorize the City Manager to enter into afive-year Tax Abatement Agreement with Shahnaz B.
Chowdhury for the property at 2701 East Rosedale Street in the Polytechnichvesleyan Neighborhood
Empowerment Zone (NEZ) in accordance with the NEZ Tax Abatement Policy and Basic Incentives,
DISCUSSION:
Shahnaz B. Chowdhury is the owner of the property at 2701 East Rosedale Street (Lot 20-22-W32 1/2' 21,
Block 101 Boaz &Dillow Addition), which is located in the Polytechnic/Wesleyan NEZ and Neighborhood
Empowerment Reinvestment Zone (NERZ No. 6). Shahnaz B. Chowdhury has applied for a five-year
municipal property tax abatement under the NEZ Tax Abatement Policy and Basic Incentives (M&C G-
14947), as amended. The NEZ Basic Incentives offers a five-year municipal property tax abatement on
the increased value of improvements to the qualified owner of any new construction or rehabilitation within
a NEZ. The Housing Department has reviewed the application and certified that the property meets the
eligibility criteria to receive NEZ municipal property tax abatement.
The owner plans to invest a minimum of $100,000 to construct a single family home in the
Polytechnic/Wesleyan NEZ. A description of the home to be constructed and drawings are attached as
Exhibit "A." The Tax Abatement Agreement is attached as Exhibit "B."
Upon execution of the Agreement, the total assessed value of the home used for calculating municipal
property tax will be frozen for a five-year period, starting on January 1, 2007, at the pre -improvement value
as defined by the Tarrant Appraisal District (TAD) on January 1, 2006 as follows:
Pre -improved TAD value of improvements
Pre -improved TAD value of land
Total pre -improvement estimated value
$0.00
430.00
9
$9,430.00
The municipal property tax on the improved value of the home after its construction is estimated
at $605.50, per year, for a total of $3,027.50 over the five-year period. However, this estimate may be
Page 2 of 2
different from th :actual tax abatement value, which will be calculated based on the TAD appraised value
of the property.
The tax abatement agreement provides that the agreement may be assigned without subsequent City
Council approval to Shahnaz B. Chowdhury's first mortgagee, or to a homebuyer who will use the required
improvements as his/her primary residence, or to the homeowner's mortgagee. All other assignments
must be approved by the City Council.
This property is located in COUNCIL DISTRICT 8.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that this action will have no material effect on City funds.
TO Fund/Account/Centers
Submitted for City Manager's Office by
Originating Department -Head:
Additional Information Contact:
FROM Fund/AccountlCenters
Dale Fisseler (6140)
Jerome Walker (7537)
Sarah Odle (7316)
httrr//www_cfwnet_�ru/crnmcil
nacketlRen�rts/mc
nrint_asn