HomeMy WebLinkAboutContract 36487CITY SECRETAR 4
CONTRACT NO. �6 .7
STATE OF TEXAS §
COUNTY OF TARRANT §
TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A
NEIGHBORHOOD EMPOWERMENT ZONE
7220 Craig Street
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 Monte M. Mitchell, owner of property
located at 7220 Craig Street, Lot 1Br1, Block 28, Hyde -Jennings Addition to the City of Fort
Worth, Tarrant County, Texas, according to the plat recorded in Cabinet A, Slide 8825, 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"), these were
readopted on April 22, 2003 and May 27, 2003 NEZ Incentives are attached hereto as Exhibit "A"
and hereby made a part of this Agreement for all purposes.
D. The NEZ Incentives contains appropriate guidelines and criteria governing tax
abatement agreements to be entered into by the City as contemplated by Chapter 312 of the Texas
Tax Code, as amended (the "Code").
E. On May 27, 2003, the City Council adopted Ordinance No. 15569 (the
"Ordinance") establishing "Neighborhood Empowerment Reinvestment Zone No. 9" City of Fort
Worth, Texas (the "Zone").
F. Owner owns certain real property located entirely within the Zone and that is more
particularly described in Exhibit `B", attached hereto and hereby made a part of this Agreement for
all purposes (the "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.
H. On December 295 2004, Owner submitted an application for tax abatement to the
City concerning the Premises (the "Application"), attached hereto as Exhibit "C" and hereby
made a part of this Agreement for all purposes.
I. The contemplated use of the Premises, the Required Improvements, as defined in
Section 1.1, and the terms of this Agreement are consistent with encouraging development of the
Zone in accordance with the purposes for its creation and are in compliance with the NEZ
Incentives, the Ordinance and other applicable laws, ordinances, rules and regulations.
J. The terms of this Agreement, and the Premises and Required Improvements, satisfy
the eligibility criteria of the NEZ Incentives.
K. Written notice that the City intends to enter into this Agreement, 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.
11
. Real Property Improvements.
Owner shall construct, on and within the Premises certain improvements consisting
of a single family residence, (i) of at least 2,500 square feet in size, and (ii) having an
appraised value of at least $100,000.00, as determined by an independent appraiser
(collectively, the "Required Improvements"). Owner shall provide a survey of the home
upon completion of the Required Improvements. The parties agree that the final survey
shall be a part of this Agreement and shall be labeled Exhibit "E". Minor variations and
more substantial variations if approved in writing by both parties to this Agreement before
construction is undertaken in the Required Improvements from the description provided in
the Application for Tax Abatement shall not constitute an Event of Default, as defined in
Section 4.1, provided that the conditions in the first sentence of this Section 1.1 are met and
the Required Improvements are used for the purposes and in the manner described in
Exhibit "D".
1.2. Completion Date of Required Improvements.
Owner covenants to substantially complete construction of all of the Required
Improvements within two years from the issuance and receipt of the building permit,
unless delayed because of force majeure, in which case the two years shall be extended
by the number of days comprising the specific force majeure. For purposes of this
Agreement, force majeure shall mean an event beyond Owner's reasonable control,
including, without limitation, delays caused by adverse weather, delays in receipt of any
required permits or approvals from any 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 used as the Owner's
primary residence in accordance with the NEZ Incentives. In addition, Owner covenants
that throughout the Term, the Required Improvements shall be maintained for the
purposes set forth in this Agreement.
2. ABATEMENT AMOUNTS, TERMS AND CONDITIONS.
Subject to and in accordance with this Agreement, the City hereby grants to Owner a real
property tax abatement on the Premises, the Required Improvements, as specifically provided in
this Section 2 ("Abatement"). "Abatement" of real property taxes only includes City of Fort
Worth -imposed taxes and not taxes from other taxing entities.
2.1. Amount of Abatement.
The actual amount of the Abatement granted under this Agreement shall be
based upon the increase in value of the Premises and the Required Improvements over
their values on January 1, 2005 the year in which this Agreement was entered into:
One Hundred percent (100%) of the increase in value from the
construction of the Required Improvements.
If the 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 will 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 Term of Abatement.
The term of the Abatement ("Term") shall begin on January 1 of the year
following the calendar year in which the Required Improvement is completed ("Beginning
)ate) and, unless sooner terminated as herein provided, shall end on December 31
immediately preceding the fifth (5th) 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 Abatement
application fee of Twenty-five Dollars ($25.00).
3. RECORDS, CERTIFICATI
3.1 Inspection of Premises.
ATION OF PR
Between the execution date of this Agreement and the last day of the Term, at any
time during construction of the Required Improvements 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 financial and business records of Owner that relate to the square footage and
appraised value of the Required Improvements and once the city property taxes are
abated, Owner must provide documentation that Owner is using the Required
Improvements as its primary residence (collectively, the "Records") at any time during
the Compliance Auditing Term in order to determine compliance with this Agreement
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.
Failure to provide all information witltitt t/te control of Owner required by this Section
3.3 shall constitute an Event of Default, as defined in Section 4.1.
3.4 Determination of Compliance.
On or before August 1 of each year during the Compliance Auditing Term, the
City shall make a decision and rule on the actual annual percentage of Abatement
available to Owner for the following year of the Term and shall notify Owner of such
decision and ruling. The actual percentage of the Abatement granted for a given year of
the Term is therefore based upon Owner's compliance with the terms and conditions of
this Agreement during the previous year of the Compliance Auditing Term.
4. EVENTS OF DEFAULT.
4.1 Defined.
Unless otherwise specified herein, Owner shall be in default of this Agreement if
(1) Owner fails to construct the Required Improvements as defined in Section 1.15 (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) HOME BUYER DOES NOT USE THE PREMISES AS PRIMARY
RESIDENCE ONCE THE ABATEMENT BEGINS, (iv) HOME BUYER DOES
NOT COMPLY WITH CHAPTER 7 AND APPENDIX B OF THE CODE OF
ORDINANCE OF THE CITY OF FORT WORTH (collectively, each an "Event of
)
efault").
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 Yayment of L.iguiaacea Lamae�.
If an Event of Default which is defined in Section 4.1 has not been cured within the
time frame specifically allowed under Section 4.2, the City shall have the right to terminate
this Agreement immediately. Owner acknowledges and agrees that an uncured Event of
Default will (i) harm the City's economic development and redevelopment efforts on the
Premises and in the vicinity of the Premises; (ii) require unplanned and expensive
additional administrative oversight and involvement by the City; and (iii) otherwise harm
the City, and Owner agrees that the amounts of actual damages therefrom are speculative in
nature and will be difficult or impossible to ascertain. Therefore, upon termination of this
Agreement for any Event of Default, Owner shall 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
(currently, Section 33.01 of the Code).
4.4. Termination at Will.
If the City and Owner mutually determine that the development or use of the
Premises or the anticipated Required Improvements are no longer appropriate or feasible,
or that a higher or better use is preferable, the City and Owner may terminate this
Agreement in a written format that is signed by both parties. In this event, (i) if the Term
has commenced, the Term shall expire as of the effective date of the termination of this
Agreement; (ii) there shall be no recapture of any taxes previously abated; and (iii)
neither party shall have any further rights or obligations hereunder.
4.5. Sexually O
Business & Liquor Sto
res.
aI Owner understands and agrees the City has the right to terminate this agreement if
the Project contains or will contain a sexually oriented business.
b. Owner understands and agrees that the City has the right to terminate this
agreement as determined in City's sole discretion if the Project contains or will contain a
liquor store or package store.
5. EFFECT OF SALE OF PREMISES.
Except for an assignment to Owner's first mortgagee or to a homebuyer who will
use the Required Improvements as its primary residence or the homeowner's mortgagee
which City Council hereby agrees to, this Abatement cannot be assigned without the prior
consent of the City Council, which consent shall not be unreasonably withheld provided
that (i) the City Council finds that the proposed assignee is financially capable of meeting
the terms and conditions of this Agreement and (ii) the proposed purchaser agrees in
writing to assume all terms and conditions of Owner under this Agreement. Owner may
not otherwise assign, lease or convey any of its rights under this Agreement. Any
attempted assignment without the City Council's prior consent shall constitute grounds for
termination of this Agreement and the Abatement granted hereunder following ten (10)
calendar days of receipt of written notice from the City to Owner.
Upon assignment to Owner's first mortgagee, or to a homebuyer who will use the
Required Improvements as its primary residence or the homeowner's mortgagee,
Owner shall have no further obligations or duties under this agreement. In addition,
uPon assignment to any other entity with the written consent of City Council, Owner
shall have no further duty or obligation under this agreement.
�7
i7
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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: City Manager
1000 Throckmorton
Fort Worth, TX 76102
and
Housing Department
Attn: Jerome Walker
1000 Throckmorton
Fort Worth, TX 76102
7. MISCELLANEOUS.
Owner:
Monte M. Mitchell
7220 Craig St.
Fort Worth, TX 76112
7.1. Bonds.
The Required Improvements will not be financed by tax increment bonds. This
Agreement is subject to rights of holders of outstanding bonds of the City.
7.2. Conflicts of Interest.
Neither the Premises nor any of the Required Improvements covered by this
Agreement are owned or leased by any member of the City Council, any member of the
City Planning or Zoning Commission or any member of the governing body of any taxing
units in the Zone.
7.3. Conflicts Between Documents.
In the event of any conflict between the City's zoning ordinances, or other City
ordinances or regulations, and this Agreement, such ordinances or regulations shall
control. In the event of any conflict between the body of this Agreement and Exhibit
"D", the body of this Agreement shall control.
7.4. Future Application.
A portion or all of the Premises and/or Required Improvements may be eligible
for complete or partial exemption from ad valorem taxes as a result of existing law or
future legislation. This Agreement shall not be construed as evidence that such
exemptions do not apply to the Premises and/or Required Improvements.
7.5. City Council Authorization.
This Agreement was authorized by the City Council through approval of Mayor
and Council Communication No. G20551 on March 1, 2005, which, among other things,
authorized the City Manager to execute this Agreement on behalf of the City.
7.6. Estoppel Certificate.
Any party hereto may request an estoppel certificate from another party hereto so
long as the certificate is requested in connection with a bona fide business purpose. The
certificate, which if requested will be addressed to the Owner, shall include, but not
necessarily be limited to, statements that this Agreement is in full force and effect
without default (or if an Event of Default exists, the nature of the Event of Default and
curative action taken and/or necessary to effect a cure), the remaining term of this
Agreement, the levels and remaining term of the Abatement in effect, and such other
matters reasonably requested by the party or parties to receive the certificates.
7.7. Owner Standing.
Owner shall be deemed a proper and necessary party in any litigation questioning
or challenging the validity of this Agreement or any of the underlying laws, ordinances,
resolutions or City Council actions authorizing this Agreement, and Owner shall be
entitled to intervene in any such litigation.
7.8. Venue and Jurisdiction.
This Agreement shall be construed in accordance with the laws of the State of
Texas and applicable ordinances, rules, regulations or policies of the City. Venue for any
action under this Agreement shall lie in the State District Court of Tarrant County, Texas.
This Agreement is performable in Tarrant County, Texas
7.9. Recordation.
A certified copy of this Agreement in recordable form shall be recorded in the
Deed Records of Tarrant County, Texas.
7.10. Severability.
If any provision of this Agreement is held to be invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions shall not in any way
be affected or impaired.
7.11. HeadinIs 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.
[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]
EXECUTED thisof , 2008, by the City of Fort Worth,
teda
Texas.
EXECUTED this day of &4 2007, by Monte M. Mitchell.
CITY OF FORT WORTH:
By: By: mw gr
Dale A. Fisseler, E. Monte M. Mitchell
Assistant City Manager
ATTEST:
By:
APPROVED AS TO FORM AND LEGALITY:
Assistant City Attorney
M & C: C-2055
ATTEST:
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 Mayor and Council Communication 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 HAND
200/
AND SEAL OF OFFICE this
�, AiVA L. 63RISEPIO
* i Notary Po61ic, State of Texas
My commission Expires
March 07, 2011
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Monte M. Mitchell,
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. Yl C
MY HAND
Mn7
Notary Public in and
the State of Texas
Notary's Printed Name
AND
SEAL OF OFFICE this J.AV day of
SARAHJ.ODLE
MY COMMISSION EXPIRES
November 5, 2011
Exhibit A: NEZ Incentives
Ext 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
141 IT A -
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) TAX ABATEMENT POLICY AND BASIC
INCENTIVES
I. GENERAL PURPOSE AND OBJECTIVES
Chapter 378 of the Texas Local Government Code allows a municipality to create a
Neighborhood Empowerment Zone (NEZ) when a "...municipality determines that the creation
of the zone would promote:
(1) the creation of affordable housing, including manufactured housing, in the zone;
(2) an increase in economic development in the zone;
(3) an increase in the quality of social services, education, or public safety provided to
residents of the zone; or
(4) the rehabilitation of affordable housing in the zone."
The City, by adopting the following NEZ Tax Abatement Policy and Basic Incentives, will
promote affordable housing and economic development in Neighborhood Empowerment Zones.
NEZ incentives will not be 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).
"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" includes only physical .improvements to real property. Eligible
Rehabilitation does NOT include personal property (such as furniture, appliances, equipment,
and/or supplies).
"Gross F/oorArea" is measured by taking the outside dimensions of the building at each floor
level, except that portion of the basement usedonly 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 ar
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 faces 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.
"Mci/fi-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.
Draft May 27, 2003 2
A.
MUNICIPAL P
AX ABATEME
RESIDENTIAL PROPERTIES LOCATED IN A NEZ
1. For residential property purchased before NEZ designation,
eligible to apply fora tax abatement by meeting the following:
a homeowner shall be
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
b. Property is rehabilitated after NEZ designation and City Council approval of the
tax abatement. after NEZ
c. Homeowner must perform Eligible Rehabilitation on the property
designation equal to or in excess of 30% of the Base Value of the property; and
d. Property is not in a tax -delinquent status when the abatement application is
submitted.
2. For residential property purchased after NEZ designation, a homeowner shall be
eligible to apply for a tax abatement by meeting the following:
a.. Property is constructed or rehabilitated after NEZ designation and City Council
approval of the tax abatement;
b. Property is owner -occupied and is the primary residence of the homeowner.
Homeowner shall provide proof of ownership by a warranty deed, affidavit of
heirship, or a probated will, and shall show proof of primary residence by
homestead exemption;
c. For rehabilitated property, Eligible Rehabilitation costs on the property shall be
equal to or in excess of 30% of the Base Value of the property. The seller or
owner shall provide the City information to support rehabilitation costs;
d. Property is not in a tax -delinquent status when the abatement application is
submitted; and
e. Property is in conformance with the City of Fort Worth Zoning Ordinance.
3. For investor owned single family property, an investor shall be eligible to apply for a
tax abatement by meeting the following:
a. Property is constructed or rehabilitated after NEZ designation and City Council
approval of the tax abatement;
b._ For rehabilitated property, Eligible Rehabilitation costs on the property shall be
equal to or in excess of 30% of the Base Value of the property;
c. Property is not in a tax -delinquent status when the abatement application is
submitted; and
d,:...,,Pfgperty.is, in,corif(;E ncewith:the_City _of.Fort Worth ,Zoning_Ordina.nce.__.,,
B. MULTI -FAMILY DEVELOPMENT PROJECTS LOCATED IN A NEZ
1. 100% Abatement for 5 Years.
an applica
for a tax a
less this section shall apply.
term
Draft May 27, 2003
3
up
o 5
ubje
Abatements for multi -family development projects for tptHous a s are smenttfoo
City Council approval. The applicant may apply e
such abatements
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:
bilitated shall
At least twenty percent (20%) of the total units constructed or reha
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 $200,0009
2. 1 % 100% Abatement of City Ad Valorem taxes up to 10 years
years 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 through 5 of the Tax Abatement P.UleCi l lCl IL
_ .. Multi-.fami.ly. projects..shall..b_e..eaigible..-for:-1:00%.abaterxienf..of.._City.ad,va.lore.m.�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 o °family size
i med an suchand unitsitasshall
defined by the Uf Sr
persons at or below 8 /
Draft May 27, 2003 4
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; °must be rehabilitated after NEZ
b. For a rehabilitation project, the property erty shall be at least
designation. Eligible Rehabilitation costs Such Eln the igible Rehabilitation costs
30% of the Base Value of the propertys g units or
must come from the rehabilitation of at least five (5) residential living
a minimum Capital Investment of $200,000.
Years 6 through 10 of the Tax Abatement Agreement
Multi -family projects shall be eligible for a 1% 1009/o abatement of City ad valorem
taxes for years six through ten of the Tax Abatement Agreement upon the
satisfaction of the following:
itated
a. At least twenty percent (20%) of teU total upepartrrmentconstructed or of Housing hand Urban
be affordable (as defined by thepercent 80% of area
Development) to persons with incomes at or below eighty p ( )
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 liNEZ designatiits OR on,
he
project must provide at least five (5)
minimum Capital Investment of $200,000; or
ust be rehabilitated after NEZ
2. For a rehabilitation project, the property erty shall be at
Such least
designation. Eligible Rehabilitation costs Eligible 30% of the Base Value of the property. gibe Rehabilitation costs
must come from the rehabilitation of at least five (5) residential living units or
a minimum -Capital Investment of $200,0000 rth deems approp riate,
b. Any other terms as CityCouncil of the Cityof Fort Wo
including, but not limited to:
anies for an agreed upon percentage of the total
1. utilization of Fort Worth comp
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
52 commit to here an agreed upon percentage of Central City residents
_._.. �._T...._.._ _... 6 -..landscaping.; ..._ _ _ft
7. tenant selection plans; and
80 management plans.
C, COMMERCIAL, INDUSTRIAL AND
PROJECTS LOCATED IN A NEZ
100% Abatement of City
COMMUNITY FACILITIES DEVELOPMENT
sfor5
Draft May 27, 2003
5
less this section shau 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 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 min_ Capital Investment of
$75,000; or
b. For a rehabilitation project, it must berehabilitated
be at Ieaster NEZ 30% of the BasenVal Eligible
ebof
Rehabilitation costs on the property
the property, or-$751000, whichever is greater.
2. 1 %-100%° Abatement of City Ad Valorem taxes up to 10 years
years this section shall apply.
Nifal
Abatements agreements for a Commercial, Industrial and Community Faces
Dapplu
evelopment projects for up to 10 years are s
conomic and CommJunity DevelopmentlDepartmentfnr
applicant may apply with the E
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 min_ Capital Investment of
_.__...4....,............_�.__�..�=.�u,....._.$75,000;-or._........_._r.._.m_,....�_-._.__...,......_..._-__-_�.«,:.._�_,.�._.v..,.n...�-:..-,�...____.._.,.�.-�,_._.._
r NEZ
b. For a rehabilitation project, it must be rehabilitated leaste30% of the Base Valueof
Rehabilitation costs on the property shall
the property, or $75,000, whichever is greater.
Years 6 through 10 of the Tax Abatement Hgreefl J JC1 JL
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:
Draft May 27, 2003 6
a. A commercial, industrial or a communi usta have ae min_t Capi al
constructed after NEZ designation m
Investment of $75,000 and must meet the requirements of subsection (c)
below ; or
b. For a. rehabilitation project, it must be rehabilis�alld be atNeastd30l% oflthe
Eligible Rehabilitation costs on the property
Base Value of the properly, or $75,000, whichever is greater and meet
the requirements of subsection (c) below.
• c. Any other terms as City Council of the City of Fort Worth deems
appropriate, including, but not limited to:
1. utilization of Fort Worth c timopacontra�ts;n agreed upon percentage of
the total costs for construe
2. utilization of certified mie°centane ofrthe total aostsl forsconstrpction
- for an agreed upon p g
contracts;
3, commit to hire an agreed upon peercentaee of Central City,rdesidents;
4, commit to hire an agreed upon p g
and
5. landscaping.
p, MIXED -USE DEVELOPMENT PROJECTS LOCATED IN A NEZ
'I .
... � � _�.-•:�., na �i�inram faxes for
less this section sna�� apply•
Abatements for Mixed -Use
City Council approval. The
such abatement.
Development Projects for up to 5 years are subject to
applicant may apply with the Housing Department for
The applicant must apply for the tax abatement
before construction or rehabilitation is started.
and be approved by City Council
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 m the
,Yy_ .._„�.,.,,:, _, .._...._......pr-oject...constitute...:L.0-.percent.or.more_of the.total.Gross Floor..Ar..ea._of..the.projeet; ..._T
and
(1) A mixed -use development project constructed after NEZ designation must
have a minimum. Capital Investment of $200,OOO;.or
(2) For a rehabilitation project, it must be rehabilitated after NEZ designation.
Eligible Rehabilitation costs on the property shall be at least 30% of the Base
Value of the property, or $200,000, whichever is greater.
T�raft Mav 27. 2003
7
2. 1 %-100%
Abatement of City Ad ;; al�re^� taYaS IIL� to 10 years
years th�� GP�tion snau a�ul�
Abatements agreements for a Mixed Use Development projects
are subject to City Council approval. The applicant may apply
Department for such abatement.
for up to 10 years
with the Housing
The applicant must apply for the tax ab tax abatement musty beI approved bbyaCity
h
is started and the application fort e
Council.
Years 1 throw h 5 of the Tax Abatemen� H I C.GI 1161 ,
Mixed Use Development projects shall b fhellTaxeAbatem0en°t Agreement upoln the
valorem taxes for the first five years of
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, anof the total Gross Floor Arela of the project;
project constitute 10 percent or more
and
c. Anew mixed -use development project 200 OOOteor fovea rehabil Cation tproject, it
have a minimum Capital Investment of $ ,
must be rehabilitated after NEZ desig Base Valge lof hee property, 0�$200n000,
property shall be at least 30 /o of th
whichever is greater..
Years 6 throw h 10 of the.Tax Abatement H I CCI1 IGI It
Mixed Use Development projects shall be thelTax Abate0m0e/nt Agreement upon the
I em taxes for years six through ten of
va or
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 tota'I G olss Floor Area of the project;e
0 cent or more of the
project constitute 1 per ..-�.•
_ _
T -
c. A
new mixed -use development project constructed after NE abili at on tproject, it
have a minimum Capital Investment of $200,000; or for a re
must be rehabilitated after N°EZ desgBa1Oe'Vallge lof h e property, 0�$200n000,
property shall be at least 30 /° of th
whichever is greater; and
d. Any
other terms as City Council of the City of Fort Worth deems appropriate,
including, but not limited to:
T,,-��- r�r��, �� �nn�
0
1. utilizatior of Fort Worth companies for an agreed upon percentage of the
total costs for construction contracts;
2. utilization of certified minority an e total costs fordconstruction conptracts;for
an agreed upon percentage of th
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
1, If a NEZ is located in a Tax Increment Financing District, City Council will determine
on a case -by -case basis if the tax abatementeet allteligibilityeequirements specfed
to eligible Projects. Eligible Projects must m
in Section III.
2. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order
I for a tax abatement under this Policy, the
to be considered "eligible" to app y
Woodhaven Community Development Corporation and ort for the Projee t to
Neighborhood Association must have submitted a letter of supp
the City of Fort Worth
�?
In order to
must:
Not be delinquent in paying property taxes for any property owned by the
owner/developer ;and. roe owned by the
Not have any City of Fort Worth liens filed against any p p �Y
applicant property owner/developer. "Liencture I eps and pavingtli ns.ed to, weed
liens, demolition liens, board-up/open stru
4. Projects to be constructed on properly to be purchased under a contract for deed are
J
not eligible for tax abatements.
5. Once a NEZ property
owner of a residential property (including multi -family) in the
NEZ satisfies the criteria set forth in ee nt a tlax a�batemendt agreement w th the C ty
abatement, a property owner may ent
of Fort Worth. The tax abatement agree ement sll in v o ation lof the City off Fort
property subject to the tax abatement agre
Worths Minimum Building Standards Code and the owner is convicted of such
....,....�.,�..�.�._,._.._..._..._.,..rviolation.,._-...�.,�.�.�:,__.u.._ _, ...T.......
.. ..�......,-.R.........
._ .._ _z ...- ,....
6. A tax abatement „granted under the criteria maximourn termeof oas Islpecif ed my the
granted once for a property in a NEZ for
d ' sold the City will assign the
agreement. If .
tax abatement
application.
a.
b.
be eligible to apply for a tax abatement, the property owner/developer
property on which tax is being abate is
agreement for the remaining term once the pew owner submits an
,. � �N:%
���ti� ��'�� � l5 ' `��'�Q00
Tlrafi- Mav 7% i.nni
7. A property owner/developer of a multifamily e �ve�oop ct n'the NEZ who Idesiresala
community facilities and mixed -use developm p J
-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 licable; and
b. File an application with the Housing Department, as app
c. The property owner must enter into a to �� aof agreementmthe tax abat met
Fort Worth. In addition to the other t
agreement shall provide that the agrolationtof thle City ofFortlWorth's Minimuhm
owner receives one conviction of a vi sub'ect to the abatement
Building Standards Code regarding the property 1
agreement during the terom °�h ch tax i b being abated is sold tithe new owner may
d. If a properly in the NEZ ert for the remaining term.
enter into a tax abatement agreement on the prop y
8. If the terms of the tax abatement agreement are not met, the City Council has the
right to cancel or amend the .abatement agreemeearls iri which the default occurred
recapture of abated taxes shall be limited to they ( )
or continued.
. 9. The terms of the agreement shall include then{ ityn ea�h year during tthe I fe of Ithe .
and verify the applicants financial statem iven year, (2) conduct an on site
agreement prior to granting a tax abatement in any g
inspection of the project in each year d batement ('agreement, b(3) merminateethe
compliance with the terms of the tax a
agreement if the Project contains or wi11 contCai n,s soleu discretione�f bhe nProject
terminate the agreement, as determined i ty
contains or will contain a liquor store or package store.
10. Upon completion of construction of the faciloiensu eeco plianlce with thehterms of the
evaluate each project receiving abatement t Council.
agreement. Any incidents of non-compliance will be reported to the City
On or before February 1st of every year during the life of the agreement, any
individual or entity receiving a tax abatem��ich det esC'theof prope►tY ownera's
provide information and documentation that the
compliance with the terms of the relieable term of thenage ementll Fai ulre to report
owner is in compliance with each app
this information and to provide the required: ax s abated n the prior year bleingsduel
result in cancellation of agreement and any t
-- •••• .'���• ythe new owner may
._... +�.c�yRy-,rt.-"'.11. If a property in the NEZ on which tax is being abated for the remaining term. Any
enter into a tax abatement agreemoe et o whic P °p o permitted in the tax abatement
sale, assignment or lease of the pr p rlY taxes
agreement results in cancellatio uns ecfied assignment occurredure of any
abated after the date on which an p
F, APPLICATION FEE
�n
nrr n nnq
1. The application fee for residential tax abatements governed under Section His is
$25.
unity
2. and
The application fee for multi-family,'commercial)
Sections IIl B mC. and D., s i ore
mixed -use development projects governed and
not to
half of one percent (.5%) of the proposed Project's Capital Investment,
exceed $1,000. The application fee0will be refunded upon issuance of certificate of
ert owner enters into a tax abatement agreement
final occupancy and once the prop Y
ation Fee shall not be credited or refunded to any
with the City. Otherwise, the Applic
party for any reason.
I�/, FEE WAIVERS
A. ELIGIBLE RECIPIENTS/PROPERTIES
case basis whether a Project that will
1. City Council shall determine on a case -by- I for a fee
contain or contains a liquor store or package store is eligible to apply
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 e Woodhaven
rt for the Project to the IC ty of Fort
Association must have submitted a letter of suppo
Worth.
3. Projects to be constructed on property to be purchased under a contract for deed are
not eligible for development fee waivers*
owner/developer to be eligible to apply for fee waivers for a
4. In order for a prope o owner/developer:
Project, the property
a
b
c.
must submit an application to the City; owned by the
must not be delinquent in .paying property taxes for any property ;
owner/developer or applicant; City the applicant
filed against any property owned by
must not have any tY liens
property owner/developer, including but not limited to, weed liens, demolition
n structure
liens, board-up/opeliens and paving liens; and or a sexually
of a Project that will contain or contains a liquor store, package store
oriented business has received City Council's determination that the Project is
eligible to apply for fee waivers.
Approval •ofu--the--applieation, and--•
approval of anv aspect of the F
ensure that.the protect is located it
.,.the fees es =s
in
di
n, th
aopli
ed. to-be•=y-��-� ••
g, DEVELOPMENT FEES
Once the Application for NE Z Incentives has been opFort Worth for �Projects t in the NEZ
following fees for services performed by the City
C.
V.
A.
are waived for new construction projects or rehabilitation at on ct st that expend at least
30% of the Base Value of the property on Eligible Rehabilitation
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
Other development related fees not specified
City Council on a case -by -case basis.
short
form
above will be considered for approval by
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. industrial, mixed -use, or community facility development projects in
Commercial, 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.
RELEASE OF CITY LIENS
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 el.igible 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.
3. Projects to be constructed on property to be purchased under a contract for deed are
not eligible for any release of City Liens.
nr�� Tdr��T �7 qnno� 12
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 Co ert taxes for any property owned by the
b. must not be delinquent in paying p p Y
owner/developer;
b. must not have been subject to a Building Standards Commission' e Osder o
Demolition where the property was demolished within the last five (5) y
c. must not have any City of Fort Worth to erfll Lie ns I includes tbut prnot lim t d to,
by the applicant property owner/deve p
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.
g, 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.
4. Developers constructing _new multi -family, commercial, industrial, mixed -use or
community facility development projects.
C. DEMOLITION LIENS
. Builders or developers_developing or rehabilitati 30 000 Releases of demoli ionllgenls i�
apply for release of demolition liens for up to $ ,
excess of $30,000 are subject to City Council approval.
p, BOARD-UPIOPEN STRUCTURE LIENS
E.
The following are eligible to apply for release of board-up/open structure liens:
1. Single unit owners performing rehabilitation on their properties.
�. Builders or developers cb �� tationl onnmulti�family, comhmerc al� ndustriallomixed-use,
3. Owners performing reha
or community facility properties.
4. Developers constructing multi -family, commercial, industrial,y mixed -use,_ or- _... _`
_it facilit ro.'ects....,_..,2.._:.._.:.,�.�-..:.��.m�,:...�....,�..
.....co.mrnun, y., Y•p J ..-�.....
PAVING LIENS
The following are eligible to apply for release of paving liens:
1. Single unit owners peS orm' {g { ngb lewlhomes on va antrlots.
2. Builders or developer
�, � r nrr nnn�
��
VI.
A.
C
3. Owners performing rehabilitation on multi -family, commercial, industrial, mixed -use,
or community facility properties.
4. ily, commercial, industrial, mixed -use, or
Developers constructing multi-fam
community facility projects.
PROCEDURAL STEPS
VVIIIIIIIII
APPLICATION SUBMISSION
applicant for NEZ incentives under Sections III. IV., and Vd must
the complete
ate
1. and
The pp "Application for NEZ Incentives an pay submit a City of Fort Worth "App licable.
application fee to the Housing Department, as app
2. The applicant for incentives under Sections III.C.2 and D.2 must also thcomplete
p e riate
submit a City of Fort Worth and
for Tax Abatement" and pay
Development Office. The application fee, review,
application fee to the Economic
evaluation and approval will be governed by City of Fort Worth Tax Abatement Policy
Statement for Qualifyin-g Development Projects.
CERTIFICATIONS FOR APPLICATIONS UNDER SECTIONS III, IV, AND V
1. The Housing Department will review the application for accuracy and application is
completeness. Once the Housing Department determines that owne developer's
complete, the Housing Department will certify the p p Y
eligibility to receive tax abatements and/or basic incentives based on the criteria
I cantes
forth in Section III., IV., and V. of this policy, as applicable. Once an app
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 Cittlabatement for commercial,
b. Economic Development Office: property tax
industrial, community f cilitde or mme t fee development projects.
c. Development D.epartm
vaiversq
d. Water Deprtt: impact feede artmentsWflapplicable.
e. Other appropriate p
2. ment, Economic Development Office, Once Development Department, Water Depart
from the
and/or other appropriate department receive out acert'`Verificfiedpationtion of NEZ Incentiveslng for
Department, each department/office shall
fill Application" and return it to the Housing Department for
Certified NEZ Incentives p record keep�,ing:. �-•-
and.tracking,.... ,.._�.�..-..........._.-.
,.,��-
APPLICATION REVIEW AND EVALUATION FOR APPLICATIONS.
1. Property Tax Abatement for Residential Properties
Projects
and Multi -family Development
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: lication
(1) The Housing Department will evaluate a completed and certified app
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 h he Ci Oand the applican may negotiate. BEs).
(d) Other items wh ty
(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 agree ndationito pprove the agreemelnt; Coouncil with the
Committee's recomm
(b) Request modifications to the application. Housing Department sta f wile
discuss the suggested modifications with the applicant and then,
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 ulicdantno
obligation to provide tax abatement in any amount or value to any app
c. Effective Date f_or Approved Agreements
All tax abatements approved by the City Council will become effective on
.__, , ,. January_1. ,of the„year followin.g.the_,year..in:,which. a Certificate.,of.O,ccupan�_y..�(.C_O.): ,...,..z:�:_.�-.
is issued for the qualifying development project (unl f d in thel ag eemelntd, taxes
tax abatement agreement). Unless otherwise specs
levied during the construction of the project shall be due and payable. -
2. Property Tax Abatement for Commercial, Industrial, Communit Fa� fl�tVej�,
a ,d -
�, r,�
Mixed -Use Development Projects ,���,tij .������ ��ti��n
�tl, `�;!��f�l�� U�id�
��
3
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: -
c
(1).The Economic Development Office will evaluate a completed and certified
application based on:
(a) The proj.ect'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
(b) Request modifications to the application. Economic Development Office
staff will discuss the suggested modifications with the applicant and- then,
if the requested modifications are made, resubmit the modified application
to the Committee for 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.
Effective Date for Approved Agreements
ALI_:,ta.xn abatements approv�d�._!�y the.., City,. Cou.ncl.l._will,,.:beco.me,. effective_�,o.rJF,..�,...,.,._.,_,.-,..
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.
Development Fee Waivers
T n o r (..--r n n n n
.1 G
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
approval, the Water Department will
arid grant appropriate incentives.
fee waivers that do not require Council
review the certified applicant's application
b. For certified applications of impact fee waivers that require Council approval, the
Water Department will review the certified applicant's application and make
appropriate recommendations to the City Council.
5. Release of City Liens
For certified applications of release of City liens, the Housing Department will release
the appropriate liens.
VII. 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 S rt for Low Income Housing Tax Credit (LIHTC) applications
uppo
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__„r ^�, ...._..�.a,...��._.._.__..._.- .,.
12.� New Model Blocks
13. Loan guarantees
14. Equity investments
15. Other incentives that will effectuate the intent and purposes of NEZ.
VIII. Ineligible Projects
The following Projects or Businesses shall not be eligible for any incentives under the City' of
,-, _ r ,. ,�___ n� nnn� � 7
OR VVOrtll's Neighborhood
Incentives:
Empowerment Zone (NEZ) Tax Abatement Policy and Basic
Sexually Oriented Businesses
EXHIBIT B
Property Description
7220 Craig Street, Lot lBrl, Block 28, Hyde -Jennings Addition to the City of Fort Worth, Tarrant
County, Texas, according to the plat recorded in Cabinet A, Slide 8825, Plat Records, Tarrant
County, Texas.
Exhibit C
FORT WORT
Application No. Id H ' Jv
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) PROGRAM
PROJECT CERTIFICATION APPLICATION - FORM "A" FOR HOMEOWNERS
I. APPLICATION CHECK LIST
Please bmit 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
❑ Application fee - cashier's check or money order payable to the City of Fort Worth (For tax abatement
applications only. For multifamily, commercial, industrial, commercial facilities, and mixed -use tax
abatement applications: 0.5% of the total Capital Investment of the project, not to exceed $1,000.00; For
single family tax abatement applications: $25 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 tax abatement application.)
❑ T- +i g or release o i lens)
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 April 6, 2004.
❑pet-le�#om Woodhaven N. ssoc' oveiopment FOR CERTIFICATION UNTIL ALL
INCOMPLETE APP OT BE
DOCUMENTS SHOWN IN THE CHECK L PROCESSED
REQUIRED DOCUM T 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 TO 90 USINESS DAYS TO COMPLETE
AFTER HE ISSUANCE OF NEZ ERT FICA ION DEPENDING OABATEMENT N THE
NT
APPROVAL PROCESS
COMPLEXITY OF YOUR PROJECT.
II. APPLICANT /AGENT INFORMATION
1. Applicant: � ,��,r�,� ���;�'l 2. Contact Person:
3. Address: 5 Z't Fri � /✓6 VL7 VIt �
Street
4. Phone no.: ��� �> '11- - �� �" 5'
6. Email: ,�,� v"� (� �> of
7. Agent (if any)
8. Address:
Street
9. Phone no.:
City 'State Zip
Fax No.. /�17 - 'a�Vf,
t J
N
City
10. Fax No.:
State Zip
11. Email:
If you need further information or clarification, please contact Jamie Warner at (817) 392-7507 or
Sarah Odle at (817) 392-7316.
Revised September 20, 2004 1
Application No.
PROJECT ELIGIBILITY
1. Please list down the addresses and legal descriptions of the project and other
organization owns in Fort Worth. Attach metes and bounds description if no
description is available. Attach an exhibit showing the location of the project.
Table 1 P
Z�
Ownershi
Address
ject Loca
5�
Code Subdivision NameAs
Other properties owned in the City of Fort Worth
°� 1 � • rw�i
properties your
address or legal
Lot No.
Block No.
- continue on a separate sheet and attach if necessary.
(Please attach additional sheets of paper as needed.)
d in Table 1, please check the boxes below to indicate if:
2. For each properties liste
• 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 Property Taxes and City Liens City Liens on Property
Address Property
Taxes Weed7Boar&up,/Op1(!II DemolitionPaving Order of
DueLiensucture Liens Liens Liens Demolition77
(Please attach additional sheets of paper as needed.)
Revised September 20, 2004
2
Application No.
3. Do you own other properties under other names? I Yes ❑ No
If Yes, please specify �� ,f vrt -
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: ❑ ❑ ❑
Multi- Commercial Industrial
Single
Yes ❑ No
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
7. Is this a new construction or rehab project?
New Construction ❑ Rehab
8. How much is the total development cost of your project? (E} Ci p Da `�� �
9. Will the eligible rehabilitation work* equal to at least 30% of the Tarrant Appr sal 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.
project? N
10. How much is the total square footage of your
square feet
11. F_or 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.
Number of Residential Units and Income
„f n.,�.,,p,-O nr Renters
**AMFI: Area Median Family Income. Please see attachment for income and housing payment gut e mes.
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 8% 0of AMFI. Check the box if you are requesting a waiver of this
requirement. ❑
facilities project, indicate square footage of non-
13. For a commercial, industrial or community
residential space.
Commercial Industrial Community Facilities
square feet I I I square feet I I I square feet
Revised September 20, 2004 3
ORT WORTH
Application No.
PLEASE ANSWER QUESTIONS N0.14 TO NO. 16 ONLY IF YOU ARE APPLYING FOR TAX
AABATEMENT.
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).
Table 4 Ca ital Investment of the Project
LL
_ Iterr�
-
***Capital Investment includes only real property improvements such as new facilities and structures, site improvements, facility
zation. Capital Investment DOES NOT include land acquisition costs and/or any existing
expansion, and facility moderni
hinery, equipment, and/or supplies or inventory).
improvements, or personal property (such as mac
..,64.T forilifv nr mixed -use project, how many employees will the
15. For a commercial, inuus�r�a�
project generate?
16. For a mixed -use project, please indicate the percentage of all uses in the project in the following table.
Table 5 Percentage of Uses in a Mixed Use Project
Residential '`'
Office
Entertainment
Retail sales
Service
III, INCENTIVES
1. What incentives are you applying for?
Municipal Property Tax Abatements
Must. provide Final Plat Cabinet and Slide for Tax Abatement Cabinet Slide
[] More than 5 years
5 years
D velo ment Fee Waivers
All building permit related fees (including Plans Review and Inspections)
Plat application fee (including concept plan, preliminary Bo Boardnal of Adjustmort form replat)
ent application fee
❑ Zoning application fee ❑
❑ Demolition fee Structure moving fee
❑ Community Facilities Agreement (CFA) application fee
❑ Street and utility easement vacation application fee
Imaact Fee Waivers H �_ No. of meters?
Impact fee Meter Size
Re ease of City Liens
❑ Weed liens ❑ Paving liens
Board up/open structure liens ❑ Demolition liens
❑
Revised September 20, 2004 4
FORT WORT
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.
information for determining eligibility as requested by the City.
(TYPED NAME)
NATURE)
I agree to provide any additional
(DATE)
''Electronic version of this form is available by request. Please call 817-392-7507 to request a copy. For more
�, o �.r�7 prnoram please visit our web site at www.fortworthgov.org/housing.
1111Vllll u.uvaa vu �.�— - •-- — - v
For Office Use Only
t In which NEZ? Hn ram, ' y Council District
Application No. r - `=-O J t - f Conform with Zoning?
Application Completed Date (Received Date): a� j�'
Type? F ❑ Multifamily ❑ Commercial ❑ Industrial ❑ Community facilities
C tr
Construction completion date?
TAD Account No.
Meet affordability test?
Rehab at or higher than 30%?
Tax current on this property?
City liens on this property?
• Weed liens
• Board-up/open structure liens
• Demolition liens
• Paving liens
• Order of de lition
Certified? Yes ❑ No
If not certified, reason
Referred to: ❑Economic
❑ Before NEZ [After NEZ Ownership/Site on c
d )c cf 5
*es ❑ No
gs ❑ No
s ❑ No
❑ Yes
❑ Yes
❑ Yes
❑ Yes
❑ Yes
Certified by
[Yes ❑No
❑ Mixed -Use
3/Yes ❑ No
Consistent with the NEZ plan? D; - es
Minimum Capital Investment?F34es
Meet mixed -use definition?
Tax current on other properties?
City liens on other properties?
• Weed liens
• Board-up/open structure liens
• Demolition liens
• Paving liens
• Order of demolition
Date certification issued?
❑Development ❑Water ❑Code
❑ Yes
�s
❑ Yes
❑ Yes
❑ Yes
❑ Yes FIA
❑ Yes
❑ No
❑ No
El o
❑ No
❑TPW
Revised September 20, 2004 5
Fox, T�_x
Family Size
1
2
3
4
5
6
7
8
Application No.
ATTACHMENT INCOME AND HOUSING PAYMENT GUIDELINES
80% of Median Income* Maximum Housing Payment Affordable for
Individuals or Families
at 80% of Median Income
$35,100 $877
$40,150 $1,003
$45,150 $1,128
$50,150 $1,253
$54,150 $1,353
$58,200 $1,455
$62,200 $1,555
$66,200 $1,655
*Source: 2004 Fort Worth -Arlington PMSA FIUD Income Guidelines
Revised September 20, 2004
G
Project Description
Single Family Residence
New Construction
Two Story
2500 Square feet
EXHIBIT D
Page 1 of 2
City of Fort worth, texas
Mayor and Council Communication
COUNCIL• 00
DATE: Tuesday, March 01, 2005
LOG NAME: 05MMITCH
REFERENCE NO.: C-20551
SUBJECT:
Approval of Tax Abatement Agreement with Monte M. Mitchell for Property Located in the Handley
Neighborhood Empowerment Zone at 7220 Craig
RECOMMENDATION:
It is recommended that the City Council:
1. Approve afive-year Municipal Property Tax Abatement for a property located at 7220 Craig Street
owned by Monte T. Mitchell in the Handley Neighborhood Empowerment Zone (NEZ);
2. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement (the
Agreement) with Monte Mitchell are true and correct; and
3. Authorize the City Manager to enter into a Tax Abatement Agreement with Monte Mitchell for 7220
Craig Street in the Handley NEZ in accordance with the NEZ Tax Abatement Policy and Basic Incentives.
DISCUSSION:
Monte M. Mitchell is the owner of the property at 7220 Craig Street (Hyde -Jennings Subdivision Blk 28 Lot
1 Br), located in the Handley NEZ and Neighborhood Empowerment Reinvestment Zone (NERZ) No.
9, Monte Mitchell applied for a five-year municipal property tax abatement under the NEZ Basic Incentives
(M&C G-13208R, M&C G-13580, M&C G-13662, M&C C-19551 and M&C G 14327, as amended). The
Housing Department reviewed the application and certified that the property meets the eligibility criteria to
receive NEZ municipal property tax abatement. The NEZ Basic Incentives offer a five-year municipal
property tax abatement on the increased value of improvements to the qualified owner of any home
constructed within a NEZ.
The proposed investment cost for this property is $100,000. No work has started on this property and no
building permits have been pulled.
Upon execution of the Agreement, the total assessed value of improvement used for calculating municipal
property tax will be frozen for five years at the most recent pre -improvement value as defined by the Tarrant
Appraisal District (TAD). The tax abatement only applies to the improvement value, not the land. The term
of the abatement shall begin on January 1 of the year following the calendar year in which the required
improvement was completed and, unless sooner terminated, shall end on December 31 immediately
preceding the fifth anniversary of the beginning date. In January 2005, TAD estimated the pre -improvement
value of the property as follows:
Pre -improvement TAD Value of Improvements $ 47,828
Pre -improvement Estimated Value of Land $ 27,972
Total - Pre -improvement Estimated Value $ 75,800
The municipal property tax on the improved value of the home after its construction is estimated at $865 per
http://www.cfwnet.org/council_pacicet/Reports/mcprint.asp 09/26/2007
Page 2 of 2
year, for a total of $4,325 over the five year period. However, this estimate may be different from the actual
tax abatement value which will be calculated based on the TAD appraised value of the property.
The tax abatement agreement provides that the agreement
Council approval to Monte Mitchell's first mortgagee, or to
improvements as his primary residence or the homeowner's
approved by the City Council.
This property is located in COUNCIL DISTRICT 5.
may be assigned without subsequent City
a homeowner who will use the required
mortgagee. All other assignments must be
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 bv:
Originating Department Head:
Additional Information Contact:
FROM Fund/AccountlCenters
Dale Fisseler (6140)
Jerome Walker (7537)
Roy C. Lopez (7537)
http://www.cfwnet.org/council�acket/Reports/mc�rint.asp 09/26/2007