HomeMy WebLinkAboutContract 36943Y SECRETARY'so
CC NTl: AC.�i t�10 .. �w
TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A
NEIGHBORHOOD EMPOWERMENT ZONE
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 Waterview Estates, L.P. ("Owner"), a
Texas Limited Partnership by and between Pars Investments, Inc. L.P., a Texas Limited
Partnership, General Partner, and Woodhaven Custom Homes, L.L.C., Limited Liability Company
General Partner, acting by and through Mark Johns, its duly authorized President.
The City Council of the City of Fort Worth ("City Council") hereby finds and the City
and Owner hereby agree that the following statements are true and correct and constitute the
basis upon which the City and Owner have entered into this Agreement:
A. Chapter 378 of the Texas Local Government Code allows a municipality to create
a Neighborhood Empowerment Zone (NEZ) if the municipality determines that
the creation of the zone would promote:
1. The creation of affordable housing, including manufactured housing in the
zone;
2. An increase in economic development in the zone;
3. An increase in the quality of social services, education, or public safety
provided to residents of the zone; or
4. The rehabilitation of affordable housing in the zone.
B. Chapter 378 of the Texas Local Government Code provides that a municipality
that creates a NEZ, may enter into agreements abating municipal property taxes
on property in the zone.
C. On July 31, 2001, the City adopted basic incentives for property owners who own
property located in a NEZ, stating that the City elects to be eligible to participate in tax
abatement and including guidelines and criteria governing tax abatement agreements
entered into between the City and various third parties, titled "NEZ Basic Incentives"
("NEZ Incentives"), these are readopted on May 15, 2007 (M&C G45726). The May
15, 2007 NEZ Incentives are attached hereto as Exhibit "A" hereby made a part of the
Agreement for all purposes.
r%r%
FORT \JVOFT7-0 3 P'I 2 35 IN
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 February 3, 2004, the Fort Worth City Council adopted Ordinance No. 15854
(the "Ordinance") establishing "Neighborhood Empowerment Reinvestment
Zone No. 16," City of Fort Worth, Texas (the "Zone").
F. Owner owns certain real property located entirely within the Lake Arlington 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 for as a single-family
residence that will be owner occupied. (the "Project").
H. On August 13, 2004, Owner submitted an application for NEZ incentives and an
application 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
Resolution and other applicable laws, ordinances, rules and regulations.
J. The City Council finds that 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 each lot within the Premises
for which tax abatements are requested, certain improvements consisting of a single-
family residence (collectively, the "Required Improvements"), of at least 1200 square
feet of livin space in size with 3 bedrooms and one and one-half baths, with 70%
OFFIGIAi�
CITY SECRETARY
FORT WORTH' TX
mortared brick and having an appraised value of $80,000.00, as determined by an
independent appraiser (collectively, the "Required Improvements"). Owner shall
provide a survey of the completed home showing Required Improvements before the
home is sold and a copy of the independent appraisal after the sale. The parties agree that
the final survey and independent appraisal shall be a part of this Agreement and shall be
labeled Exhibit E. Minor variations, and more substantial variations if approved in
writing by both of the parties to this Agreement, in the Required Improvements from the
description provided in the Application for Tax Abatement shall not constitute an Event
of Default, as defined in Section 4.1, provided that the conditions in the first sentence of
this Section 1.1 are met and the Required Improvements are used for the purposes and in
the manner described in Exhibit "D".
1.2. Completion Date of
Owner covenants to substantially complete construction of all of the Required
Improvements within one year 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 constructed and the
it is continuously used as the primary residence o
Premises shall be sold so that f the
Home Buyer in accordance with the description of the Project set forth in the Exhibit
"D". In addition, Owner covenants that throughout the Term, the Required
Improvements shall be operated and maintained for the purposes set forth in this
Agreement and in a manner that is consistent with the general purposes of encouraging
development or redevelopment of the Zone.
2. ABATEMENT AMOUNTS
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.
O���CIA�- p;�CORD
0
FORS V�1R 5
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, 2007, 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, Owner shall not
be eligible to receive any Abatement under this Agreement.
2.2. Increase in Value.
The abatement shall apply only to taxes on the increase in value of the Premises
due to construction of the Required Improvements and shall not apply to taxes on the
land.
2,3, Term of Abatement.
The term of the Abatement ("Term") shall begin on January 1 of the year
following the calendar year in which a Required Improvement is sold to a Home
Buyer to be used as its primary residence ("Beginning Date") and, unless sooner
terminated as herein provided, shall end on December 31 immediately preceding
the fifth (5`h) anniversary of the Beginning Date. Upon the sale to a Home Buyer,
City shall certify that the Required Improvements have been completed in
satisfaction of the terms of the agreement. However, the Compliance Auditing
ment is executed and will end on the
Term will begin on the date this agree
expiration fate of the Term.
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
fily house. The application fee shall not be credited or refunded
ee of $25.00 per single fam
to any party for any reason.
O��'II�i� RECORD
Cf" x
FORT WORTH,
3. RECORDS CERTIFICATION AND EVALUATION OF
3.1. Inspection of Premises.
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
tshall provide access to the Premises in order for
o Owner, the City shall have and Owner
the City to inspect the termndes and conditionsevaluate
of this Agreement.Improvements
Owner shall cooperate
compliance with the ter
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
provide documentation that Owner is using the Required Improvements as its primary
residence (collectively, the "Records") at any time during the Compliance Auditing Term
in order to determine compliance with this Agreement. Owner shall make all applicable
Records available to the City on the Premisesshall otanother therwise location in the pooperate fully following
with the City
reasonable advance notice by the City an
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 within the control of Owner required by this
Section 3.3 shall constitute an Event of Default, as defined in Section 4.1.
3.4. Determination of 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.
CITY H TX
FORT WORT
4. EVENTS OF DEFAULT.
4.1. Defined.
Unless otherwise specified herein, Owner shall be in default of this Agreement if (i)
Owner fails to construct the Required Improvements as defined in Section 1.1.; (ii) ad
valorem real property taxes with respect to the Premises or the Project, or its ad valorem
taxes with respect to the tangible personal property located on the Premises, become
delinquent and Owner does not timely and properly follow the legal procedures for protest
and/or contest of any such ad valorem real property or tangible personal property taxes or
(iii) HOME BUYER DOES NOT USE THE PREMISES AS PRIMARY
NT BEGINS, (iv) HOME BUYER DOES
RESIDENCE ONCE THE APTETE MEAND APPENDIX S OF THE CODE OF
NOT COMPLY WITH CHAPTER
ORDINANCE OF THE CITY OF FORT WORTH (collectively, each an "Event of
Default").
4.2. Notice to Cure.
Subject to Section 5, if the City determines that an Event of Default has occurred,
the City shall provide a written notice to Owner that describes the nature of the Event of
Default. Owner shall have ninety (90) calendar days from the date of receipt of this
itten notice to fully cure or have cured the Event of Default. If Owner reasonably
wr
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
(..) if
(180) calendar days from the original date of receipt of the written notice, or ii
reasonably believes that Owner will require more than one hundred eighty (180) days to
cure the Event of Default, after advisig
nonaltim
e, fany,as may be offered by he Council in an open meeting of tCity
efforts and intent to cure, such addit
Council in its sole discretion.
4.3. Termination for Event of Default and Payment of LlquivaLeu "a..,aVft..o.
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 there
from 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
OFFICIALarnag�s, :all taxes that were abated in accordance with this Agreement for each year
l dRET ARY
CVVY
FORT WORTH, T
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
ithin sixty (60) days following the effective date of
due, owing and paid to the City w
unt is not
termination of this Agreement. In the event that all or any portion of this amo
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, (1) if the Term
has commenced, the Term shall expire as of the effective date of the termination of this
Agreement; (ii) there shall be no recapture of any taxes previously abated; and (iii)
neither party shall have any further rights or obligations hereunder.
4.5. Sexually oriented Business & Liquor atores or
a. Owner understands and agrees the City has the right to terminate this
agreement if the Project contains or will contain a sexually oriented business.
b. Owner understands and agrees that the City has the right to terminate this
agreement as determined in City's sole discretion if the Project contains or will contain a
liquor store or package store.
5. EFFECT OF SALE OF PREMISES.
Except for an assignment to Woodhaven Homes, L.P., or any other builder or
developer approved by the Housing Department Director, or 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.
FORT WORTH, T'
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.
THE EVENT OF A SALL uti a�ai�����l�.l1
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 IMAIL OR BY HAND EL VERYMUST BE
SENT TO THE CITY BY CERTFIE
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 St.
Fort Worth, TX 76102
and
Housing Department
Attn: Jerome Walker
1000 Throckmorton
Fort Worth, TX 76102
cli T S R TX
FORS �VORT
Owner:
Waterview Estates, L.P.
Pars Investment, Inc., General Partner
3901 Airport Freeway, Suite 200
Bedford, TX 76021
7. MISCELLANEOUS.
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 n tbe co Improvements.dence that such
exemptions do not apply to the Premisesand/Required
7.5. City Council Authorization,
This Agreement was authorized by the City Council through approval of Mayor
and Council Communication No.G22333 on November 21, 2007, 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.
FORT WORTH, TX
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. 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.
OF�ICI r,� � TA Y
F02T WORTH, T'
EXECUTED this��� ay of I 1 l( , 20085 by the City of Fort Worth,
Texas.
EXECUTED this I day of�� , 20085 by Waterview Estates, L.P.,
Pars Investment, Inc., General Partner.
CITY OF FORT WORTH:
By' Mehrdad Moayedi
T. ' n PA.-� 1 �r�.�
Axg Assistant City Manager President
�c �
ATTEST:
By:
APPROVED AS TO FORM AND LEGALITY:
Charlene Sanders
Assistant City Attorney
CITN ZIu T
FORT WORTH,
STATE OF TEXAS §
COUNTY OF TARRANT § '
BEFORE ME, the undersigned authority, on this day personally appeared
Wig --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.
G1,�VET1 UNDER MY HAND AND
2008,
No�ry Public in and for
the tate of Texas
Notary's Printed Name
%a i
:CART WORTH, TX
SEAL OF OFFICE this day of
[VOTARY PUBLIC
STATE OF TEXAS
My Comm. UP.12-14-"009
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Mehrdad Moayed1 of
Waterview Estates, L.P., a Texas Limited Partnership, Pars Investments, Inc., General Partner,
known to me to be the person whose name is subscribed to the foregoing instrument, and
acknowledged to me that he executed the same for the purposes and consideration therein
expressed, in the capacity therein stated and as the act and deed of Waterview Estates, L.P., a
Texas Limited Partnership, Pars Investment, Inc., General Partner.
GIVEN UNDER
Notary Public in and for
the State of Texas
Notary's Printed Name
VORT WO! •
MY HAND AND SEAL OF
2008.
OFFICE this �a- day of
IA.URA WAYLN11f)
My CommisMon Expires
July 14, 2008
Exhibit A: NEZ Incentives
Exhibit B: Property Description
Exhibit C: Application: (NEZ) Incentives and Tax Abatement
Exhibit D: Project description including kind,
improvements.
number and location of the proposed
Exhibit E: Final Survey and Independent Appraisal
R
Cr CRC
CARS
VOR
WORTH
CITY OF FORT
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) TAX ABATEMENT POLICY AND BASIC
INCENTIVES
I. GENERAL I'UKt'V�C Hiw vv�-v . -..
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 Gity 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
improvements , facility expansion, and facility modernization. Capital Investment
structures, site
does NOT include land acquisition costs and/or any existing improvements, or personal property
(such as machinery, equipment, and/or supplies and inventory).
CIS SECRETARY
Fp-ZOD7T 1
"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 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.
of
"ildinStandards Codeis Article IV of the Fort Worth City Code adopted pursuant
Minimum Bug
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.
or
"Mixed -Use Development Project" is a development
project which uses constitute 20rpe�centses tor moreroftthe
rehabilitate mixed -use facilities in which residential ses
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'"Community Facility Development
"
Project'; "Commercial/Industrial Development
Project'; "Mixed -Use Development Project'; or a
"Reinvestment Zone" is an area designated as such by the City of Fort Worth in accordance.
with the Property Redevelopment and Tax Abatement Act codified in Chapter 312 of the Texas
Tax Code, or an area designated as an enterprise zone pursuant to the Texas Enterprise Zone
Act, codified in Chapter 2303 of the Texas Government Code.
Adopted 5-15-2007 2
III. MUNICIPAL PROPERTY TAX ABATEMENTS
A. RESIDENTIAL PROPERTIES LOCATED IN A NEZ- FULL ABATEMENT FOR 5
YEARS
1. For residential property purchased before NEZ designation, a homeowner shall be
eligible to apply for a tax abatement by meeting the following:
a. Property is owner -occupied and the primary residence of the homeowner prior to
the final NEZ designation. Homeowner shall provide proof of ownership by a
warranty deed, affidavit of heirship, or a probated will, and shall show proof of
primary residence by homestead exemption; and
b. Property is rehabilitated after NEZ designation and City Council approval of the
tax abatement.
c. Homeowner must perform Eligible Rehabilitation on the property after NEZ
designation equal to or in excess of 30% of the Base Value of the property; and
d. Property is not in a tax -delinquent status when the abatement application is
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. the City of Fora Worth Zoning Ordinance.
Property is in conformance with
B. MULTI -FAMILY DEVELOPMENT PROJECTS LOCATED IN A NEZ
1. 100%Abatement for 5 years.
� `t ,�„ less this section shall apply.
Adopted 545-2007
3
Abatements for multifamily development projectsf r up to
the years
are subject
trtment fto
City Council approval. The applicant may apply Vith
or
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:
habilitated shall
At least twenty percent (20%) of the total units constructed or re
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
shall be set aside for
median income based on family size and such units
persons at or below 80% °frban Devemedian
lo mentor City Counc e as tlmay waive or
Department of Housing and U p
reduce the 20% affordability requirement on a case -by -case basis; and
(a) For a multi -family development project constructed after NEZ designation, the
project must provide at least five (5) residential living units OR have a
minimum Capital Investment of $200,000; or
(b) For a rehabilitation project, the property must be rehabilitated after NEZ
designation. Eligible Rehabilitation costs on the property shall be at least
30% of the Base Value of the property. Such Eligible Rehabilitation costs
must come from the rehabilitation of at least five (5) residential living units or
a minimum Capital Investment of $200,000.
2.
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 Hareemem
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
ffo(as defined by the U. S. Department of Housing and Urban
be ardable
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
:
_i Are
4
if F Adopted 545-2007
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
sof the Base the property. at eat five (5) resident alliving unitsor
ts
must come fromherehabilitation ton
a minimum Capital Investment of $200,0009
Year; 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:
a. At least twenty percent (20%) of the total units constructed
of Housing
ng hand Urbanitated
be affordable (as defined by the U. S. Department
Development) to persons with incomes at or below eighty percent (80%) of area
ly size and such units shall be set aside for
median income based on fami
persons at or hPior
nW 80% of the median income as defined by the U.S.
Department of Housing and Urban Development. City Council may waive
reduce the 20% affordability requirement on a case -by -case basis; and
1. 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
2. For a rehabilitation project, the property must be rehabilitated after NEZ
designation. Eligible Rehabilitation costs on the Such Eligierty shall be ble costs
least
30% of the Base Value of the property. 9ibe Rehabilitation
must come from the rehabilitation of at least five (5) residential living units or
a minimum Capital Investment of $200,000.
b. Any other terms as City Council of the City of Fort Worth deems appropriate,
including, but not limited to:
1. utilization of Fort Worth companies for an agreed upon percentage of the total
costs for construction contracts;
2. utilization of certified minority and women owned business enterprises for an
agreed upon percentage of the total costs for construction contracts;
3. property inspection;
4. commit to hire an agreed upon percentage of Fort Worth residents
59 commit to hire an agreed upon percentage of Central City residents
6. landscaping;
7. tenant selection plans; and
8w management plans.
C, COIVIfViERCIAL, INDUSTRIAL AND
PROJECTS LOCATED IN A NEZ
a°4 �,RE TAR
e,. -,
COMIViUNITY FACILITIES DEVELOPMENT
5
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.
d by City Council
The applicant must apply for the tax abatement and be approve
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. ilities development project
A commercial, industrial or a community fac
constructed after NEZ designation must have a minimum Capital Investment of
$75,0000, or
b. Fora rehabilitatosts on the It mu
property shall bst be e t at east 30% of ated after NEZ the Base Value of
Rehabilitation c p
the property, or $75,000, whichever is greater.
Abatement of City Ad Valorem taxes u
If an applicant apf�n�s ��� a
years 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 I ax Hpatement Hyl
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 commercialindustrial or a
desi nation must hauls a facilities develo
pment
nvestment eof
constructed after g
$75,000; or
b. For a rehabilitation
project,
on the property shall bbe eatleast er NEZ 30°o of the BasenValuebof
Rehabilitation co p p
the property, or $75,000, whichever is greater.
, rVy .
F IORPT
Adopted 545-2007
6
Years 6 through 10 of the Tax Abatement Agreement
Commercial, Industrial and Community Facilities Development projects shall be
eligible for 1 %-100% abatement of City ad valorem taxes for years six through ten of
the Tax Abatement Agreement upon the satisfaction of the following:
a. A commercial, industrial or a communityfacilities
have haae miniproject
mum Capital
constructed after NEZ designation must
Investment of $75,000 and must meet the requirements of subsection (c)
below; 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 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 companies for an agreed upon percentage of
the total costs for construction contracts;
2. utilization of certified minority and women owned business enterprises
for an agreed upon percentage of the total costs for construction
contracts;
3. commit to hire an agreed upon percentage of Fort Worth residents;
40 commit to hire an agreed upon percentage of Central City residents;
and
5. landscaping.
D. MIXED -USE DEVELOPMENT PROJECTS LOCATED IN A NEZ
PJ
less this section shall apply.
Abatements for Mixed -Use Development Projects for up to 5 years are subject to
City Council approval. The applicant may apply with the Housing Department for
such abatement.
The applicant must apply for the tax abatement and be approved by City Council
before construction or rehabilitation is started. for a
In order to be elapbitated mixed property tax abatement,
development upon complet
a NEZ midst satisfy the
constructed or reh
following:
a. Residential uses in the project constitute 20 percent or more of the total Gross
Floor Area of the project; and
b. Office, eatinguteand
10 entertainment,
rrsales service
of the total Gross Floor Area of the project;.
project constit p
and
�� (1) A mixed -use development project constructed after NEZ designation must
have a minimum Capital Investment of $200,000; or
T
Adopted 545-2007 7
EZ designaLIU"v
(2) For a rehabilitation project; it must be rehabilitated
at least of the Base
Eligible Rehabilitation costs on the property
Value of the property, or $200,0001 whichever is greater.
2. 1 %-100"/o Hnateme� ►� u� ^� -
ears this section snail app�v.
to
Abatements agreements for a Mixed Use Devellopao nmayoapplyf withpthe 1Housing
are subject to city Council approval. The app
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.
Mixed Use Development projectsears lofthe l'Tax eAbatement Agreement upon the
valorem taxes for the first five y
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 entertainments more of the total Gross Floor Area of the project;
ce uses in the
project constitute 10 percent
and
c. A new mixed -use development project constructed after NEZ designation must
have a min_ Capital Investment of $200,000; or for a rehabilitation project, it
must be rehabilitated after o00 of the Balse Value of Rehabilitationible e property, o� $200,000,
sts on the
property shall be at least 3
whichever is greater.
Mixed Use Development projects ten of thelTax Abatem0e/nt Agreement upoln the
valorem taxes for years six through
satisfaction of the following:
a. Residential uses in the project constitute 20 percent or more of the total Gross
Floor Area of the projects 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;
ion
c. Anew mixed -use development project constructed
for a rehabilitation tproject, it
rF,;M-� TA,�r have a minimum Capital Investment of $200,000;
„y,-- ���'j t must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the
Pa
Adopted 5-15-2007 $
E.
property
shall be at least 30% of the Base Value of the property, or $200,000,
whichever is greater; and
Any other terms as City Council of the City of Fort Worth deems appropriate,
including, but not limited to:
1, utilization of Fort Worth companies for an agreed upon percentage of the
total costs for construction contracts;
2a utilization of certified minoritof �� total costs foren dbusiness construction contracts; enterprises
an agreed upon percentage
3. property inspection;
40 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;
70 tenant selection plans; and
8. management plans.
ABATEMENT GUIDELINES
1. If a NEZ is located in a Tax Increment Financing
incentivesDnitivres in ISectionty nlll will bewill toffered
ermine
on a case -by -case basis if the tax abatement
to eligible Projects. Eligible Projects must meet all eligibility requirements specified
in Section III.
nt
ne, in orcler
2. If a Project is located in the�yWoodhaven rNeighborhood aba abatement under this policy, the
to be considered eligible to apply
poration and the Woodhaven
Woodhaven Community Develo e submittedment ra letter of support for the Project to
Neighborhood Association must ha
the City of Fort Worth
r a tax abatement, the property owner/developer
3. In order to be eligible to apply fo
must:
a. Not be delinquent in paying property taxes for any property owned by the
owner/developer, except that an owner/developer may enter into a tax
abatement agreement with the city of Fort Worth for a specific Project if:
1. the Project meets NEZ tax abatement criteria; and
sible for the tax delinquency for the Property;
2. the applicant is not respon
and off the taxes under the
3. the applicant enters into an agreement to pay
guidelines permitted under state law; and
4. the tax abatement shall provide that the agreement shall take effect
after the delinquent taxes are paid in full any proerty owned by the
b. Not have any City of Fort Worthliens
s
ensrs file
d include, againstarelimited
peed
applicant property owner/develop
liens, demolition liens, board-up/open structure liens and paving liens.
4. Projects to be constructed on property to be purchased under a contract for deed are
not eligible for tax abatemenir
ts.
"TARY
,f a 9
Adopted 5-15-2007
5
owner of a residential property (including multi -family) in the
Once a NEZ property 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 Cthe
ity
of Fort Worth. The tax abatement agreee merit sshallnt in o ation lof the City off Fort
property subject to the tax abatement ag
North's Minimum Building Standards Code and the owner is convicted of such
violation.
d under the criteria as maximum termofaspecif ed
Sectionforth in Ilia can sil
y be
A tax abatement granten the
granted once for a property in a NEZ f
agreement. If a property on which tax is beingab�ateonce the new o is sold, the city nerdt
submits an
1
tax abatement agreement for the remaining e
applicatione
7. A property owner/developer of a multifaomilme tVproject in'the NEZ who desires Ia
community facilities and mixed use devel p
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 applicable; and
b. File an application with the Housing Department, as
c. The property owner must enter into a tax abatement agreement with the City of
ment
Fort Worth. In addition to the otherto automaticallysrm halls of gtreement, the erminateifthe
agreement shall provide that the agreement
owner receives one conviction of a violation of tClsub subject to of Fort theorth abatement
nimum
Building Standards Code regarding the property 1
agreement during the term
wh cnd
h taxhe tax is being abated batement agreement;
s sold, new owner may
d. If a property in the NEZ property for the remaining termw
enter into a tax abatement agreement on the prop y
8. If the terms of the tax abatement agreeameeement.ln he event�of ancellathonI the
t
right to cancel or amend the abatement 9 m which the default occurred
recapture of abated taxes shall be limited to the year(s) or continued.
9. The terms of the agreement shall includtementsthe tyn each yeaof Fort rthduri g right
the I fe of review
the
and verify the applicant's financial sta iven year, (2) conduct an on site
agreement prior to granting a tax abatement urin any the life of the .abatement to verify
inspection of the project in each y g
3 terminate the
compliance with the term oftseorawill abatement
sexually noriented business (4
agreement if the Project contain
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 ce will be reportto insure liance with the terms ed to the city Council. f the
agreement. Any incidents of non-compliance
On or before February 1st of every year during the life of the agreement, any
-: 3 individual or entity receiving a tax abatement from the City of Fort Worth shall
TY 10
Adopted 545-2007
F.
IV.
A.
owner's
provide information and of the eespe five agreementtation portch and shallpropertythe certify that the
compliance with the term
owner is in compliance with each applicable term of the agreement. Failure to report
this information and to provide the required certification
abated irnthe above the pro yeaableingine sdule
result in cancellation of agreement and y
and payable.
11. If a property in the NEZ on which tax is being ab
ated for��°rehmamay
nning termew s Any
enter into a tax abatement agreement on hich is n of permitted in the tax abatement
sale, assignment or lease of the property
agreement results in cancellation of the agreement and recapture of any taxes
abated after the date on which an unspecified assignment occurred.
APPLICATION FEE
1. An application fee of $25.00 for all basic incentives, excluding tax abatements*
residential tax abatements governed under Section III.A is
2. The application fee for
$100.
3, The application fee for multi -family, commercial jel ections, community
I BmC. andDi, issone�
mixed use development projects gover
half of one percent (0.5%) of the proposed PrCFeeashall not cred ted2 00
minimum not to exceed $2,0008 TheApplication
refunded to any party for any reason.
FEE WAIVERS
ELIGIBLE RECIPIENTS/PROPERTIES
that
1, City Council shall determine on a case
acka ae storese s is el gibte to apply whether a tfor a fete
contain or contains a liquor store or p g
waiver.
2. If a Project is located in the Woodhaven feewaer under this Policy,
ib�Empowerment
theZone,
Woodhaaen
to be considered eligible to apply for
Community Development Co submitted Corporation
letter of supportf oaven the Project to Association must have to the City of Fort
Worth —however, once the NEZ Plan is submitted for the Woodhaven NEZ, this will
no longer be required.
3. Projects to be constructed on property to be purchased under a contract for deed are
not eligible for development fee waivers.
4. In order for a property owner/developer to be eligible to apply for fee waivers for a
Project, the property owner/developer:
a. must submit,an application to the City;
OFFIC
CITY Y ECRETRY
TX
".
11
Adopted 5-15-2007
b. must not be delinquent in paying property taxes for any property owned by the
owner/developer or applicant; applicant
City against any property owned by the
c. must not have any Y liens filed
demolition.
property owner/developer, including but not limited to, weed liens,
liens, board-up/open structure liens and paving liens; and
dckage store or a sexually
d. of a Project that will contain or contains a liquor store, p
oriented business has received City Council Is determination that the Project is
eligible to apply for fee waivers.
g, DEVELOPMENT FEES
Once the Application for NEZ Incentives has been approved frorth for�Projects ified t n he NEZ
following fees for services )erformed by the City
are waived for new construction projat expend at least
ects or
Rehabilitation costs:
30% of the Base Value of the property on Eligible
ons
1. All building permit related fees (including Plans Review and fiat pectifinaplat, 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)
7. Zoning application fee tion application fee
8. Street and utility easement vaca
g. Ordinance Inspection Fees Application Fees
10. Consent/Encroachment Agreement
p Other development related fees not specified above will be considered for approval by
City Council on a case -by -case basis.
C, IMPACT FEES
1. Single family and multi -family residential development projects in the NEZ.
Automatic 100% waiver of water and wastewater impact fees will be applied.
2. Commercial, industrial, mixed -use, or community facility development projects in the
NEZ.
t fees up
a. Automatic 100% waiver of water and reach
chtewater commerc commercial, industrial, tmix0 o or
ed uuse or
equivalent to two 6-inch meters fo
community facility development project.
pact fee waiver exceeding $55,000 or requesting a
b. If the project requests an imtw 6 inch meterl
than then city Council approval is
waiver for larger and/or more
OFFICIAL
CITY aE
Adopted 5-15-2007
required. Applicant may request the additional amount of impact fee waiver
through the Housing Department.
1/, RELEASE OF CITY LIENS
A. ELIGIBLE RECIPIENTS/PROPERTIES
1. Git Council shall determine on a case -by -case basis wh b er Projectfor a fee ill
Yto apply
contain or contains a liquor store or package store is a ig
waiver.
2. If a Project is located in the Woodhaven of city liens under this hborhood ntZone,
Policy, the
order
to be considered eligible to apply for release
Woodhaven community mus thavlomee submitted Corporation and a letterthe of support for Project to
Neighborhood Association
the City of Fort Worth —however, once the NEZ Plan is submitted for the Woodhaven
NEZ, this will no longer be required.
3. Projects to be constructed on property to be purchased under a contract for deed are
not eligible for any release of City Liens.
property owner/developer to be eligible to apply fnr a release of city
4. In order for a prop Y and E. for a' Project, the property
liens contained in Section V.B., C., D.,
owner/developer:
a. must submit an application to the City; taxes for any property owned by the
b. must not be delinquent in paying property
owner/developer;
b. must not have been subject to a mol sheduilding twi hintheandards Clast five (5) years;
o
Demolition where the property wasrt
cm must not have any City of Fort Worth liensfiled
agai ncludes,t any other
but prnot f m t d owned
by the applicant property owner/developer.
weed liens, demolition liens, board-up/open structure liens anstore orie sexually
d. of a Project that contains or will contain a liquor store, package
oriented business has received City Council's determination the Project is eligible
to apply for release of City liens.
f city liens, the
5. In order for a Rehabilitation Project toaq qua
lita'tion hosts on the Pease roperty of at lease
owner/developer must spend Eligible Reh
30% of the Base Value of the Property.
6. Liens shall be released once the Project Improvements have been made to the
property.
ication of the property shall not be released.
7. Any liens filed after the initial certif
g, WEED LIENS
The following are eligible to apply for release of weed liens:
Gm 1. , Single unit owners performing rehabilitation on their properties.
"T \N U-h
Adopted 5-15-2007
13
vacanL
2. Builders or developers constructing new homes onlc al, industrial, mixed -use,
3. owners performing rehabilitation on multi -family, commer
or community facility properties.
4. Developers constructing new multi -family, commercial, industrial, mixed -use or
community facility development projects.
C, DEMOLITION LIENS
abilitating a property for a Project are eligible to
Builders or developers developing or reh
apply for release of demolition liens for up t a$30o,000. Releases of demolition liens in
excess of $30,000 are subject to City Council pp
vale
D, BOARD-UP/OPEN STRUCTURE LIENS
The following are eligible to apply for release of board-up/open structure liens:
eso
1. Single unit owners performing
constructing newrehabilitatton on their properts single family homers on vacant lots.
2. Builders or developers
3. Owners performing rehabilitation on multifamily, commercial, industrial, mixed -use,
or community facility properties.
4. Developers constructing multi -family, commercial, industrial, mixed -use, or
community facility projects.
E, PAVING LIENS
The following are eligible to apply for release of paving liens:
propertiese
1. Single unit owners performing rehabilitation
on vacant lots*2. Builders or developers constructing new
3. Owners performing rehabilitation on multi -family, commercial, industrial, mixed -use;
or community facility properties.
4. Developers constructing multi -family, commercial, industrial, mixed -use, or
community facility projects.
VI. PROCEDURAL Si'EPS
A, APPLICATION SUBMISSION
1. The applicant for NEZ incentives under Sections III. IV., and V. must complete
appropriate
ate
submit a City of Fort Worth "Application for NEZ Incentives" and pay the
application fee to the Housing Department, as applicables
licant for incentives under Sections III.C.2 and D.2 must also
complete nd
2. The app
submit a City of Fort Worth Application for Tax Abatement" and Ipaythe appropriate cation feereview,
application fee to the Economic Development Office. The appc
overnedo'ects.y of Fort Worth Tax Abatement Policy
evaluation and approval will be g.
Statement for Qualifying Development Pr
Be CERTIFICATIONS FOR APPLICATIONS UNDER SECTIONS III. IV, AND V
�nt
OFFI Department will review the application for accuracy and
CITY �1. The Housing pep
FORT Vv �j ITH5 TX
14
Adopted 545-2007
C.
com leteness: Once the Housing Department determines that the application is
p Department will certify the property owner/developer's
complete, the Housing incentives
eligibility to receive tax abatements and/or bass as appl'c bless Once tan applicant's
forth in Section III., IV., and V. of this policy, ro riate departments
eligibility is Departm
ntat onent meetiingth City
nwform ipdepartments and the
administering the incentives. An or
applicant may be scheduled. The departments include:
If
a. Housing Department: property tax abatement for residential properties and mu -
family development projects, release of City liens.
b. Economic Development Offices p mpertxedyuse development pro ecttax abatement for s rcial,
industrial, community facilities o
c. Development Department: development fee waivers.
d. Water Department: impact fee waivers.
e. Other appropriate departments, if applicable.
2. partment, Water Department, Economic Development Offi
Once Development Deice,
and/or other appropriate department recei'II out art"Verificationttof NEZ Incentives for
Department, each department/office shah f
Certified NEZ Incentives Application" and return it to the Housing Department for
record keeping and tracking.
00006 v Jn Z'
n-r� MQ
APPLICATION REVIEW AND EVALUATION FOK Arr.rLIGAI I"�
1, Property Tax Abatement for Residential Properties and Multi -family Development
Projects
a. For a completed and certified applicthenC {r Managermore than shall ve years of tax
execute a tax
abatement, with Council approval, Y
abatement agreement with the applicants for
b. For a completed and certified multi-family
amily development project application
more than five years of tax abatement:feted and certified application
(1) The Housing Department will evaluate a comp
based on:
projects increase 's in the value of the tax base.
(a) The pro
(b) Costs to the City (such a contractsructure commitedlt pation, etc.).
(c) Percent of construction
(i) Fort Worth based firms, and siness Enterprises
(ii) Minority and Women Oa ed Bu
d the applicant may negotiate. BEs).
(d) Other items which the City
(2) Consideration by Council Committees artment may present
Based upon the outcom city
t t Coun il'strEconomic Development Committee.
the application to the Y lication to the Economic
Should the Housing Department present the app sider the application at an
Development Committee, the Committee will con
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
OFFICIA Committee's recommendation to approve the agreement; or
CITY svaa.rs
15
Adopted 54 5-2007
(b) Request modifications to the application. HousingDepaarnmdent stall f thle
discuss the suggested modifications with the applicant
applitheni cation to
requested modifications are made, resubmit the modified
the Committee for consideration; or a eal the Committee's finding
(c) Deny the application. The applicant may pp
by requesting the City Council to: (a) disregard the Committee's finding
taff to incorporate the application into a tax
and (b) instruct city s
abatement agreement for future consideration by the City Council.
(3) Consideration by the City Council to approve or deny any tax abatement
The City Council retains sole authority rove any tax abatement
agreement and is under no obligation to app
application or tax abatement agent n an amount or value to any applicantsment. The City of Fort Worth is under .
obligation to provide tax abatement Y
c. Effective Date for Approved Agreements
the City All tax abatements approved by Y Council will become effective on
January 1 of the year following the year in h un esslotherw'se specified in thancy Oe
is issued for the qualifying development
tax abatement agreement). Unlessotherwise
herw pbelfied in due and a agreement, taxes
levied during the construction of the project shall
Property Tax Abatement for Commercial, Industrial, Community Facilities, and
2 p
Mixed -Use Development Projects
a. For a completed and certified application
city
no more than shall ve years execute of tax
tax
abatement, with Council approval, Y Manager
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 (contractsructure commitedito ation, etc.).
(c) Percent of construction
(i) Fort Worth based firms, and
(ii) Minority and Women owned Business Enterprises (MIWBEs).
(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
resent
Development Committee. Should the Ecment Committee,the Comcmitoffie ptee will
the application to the Economic Develop
consider the application at an open meeting. The Committee may:
FORT WORTH TY
Adopted 5-15-2007
3
G!
(aI
(b)
(c)
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
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 appeal the Committee's finding
Deny the application. The applicant may app
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 or deny any tax abatement
The City Council retains sole authority to approvetax abatement
agreement and is under no obligation to approve any
application or tax abatement agreement. The City of Fort Worth is underno
obligation to provide tax abatement in any amount or value to any applicant.
c. Effective Date for Approved Agreements
All tax abatements approved by the City Council will become effective on
January 1 of the year following the year
in
n(unlesshich a ficate of occupancy
specified in the
is ;sued for the qualifying development project r. A ;
tax abatement agreement). Unless
of the otherwise
th a ishal be1TIeU In the CA �Nqor
due and payable.agreement, taxes
levied during the construction project
Development Fee Waivers
re Council
a. For certified applications of develont ewill arev ewivers h the at o ertifiednot u'applicant Is
approval, the Development Department
application and grant appropriate incentiveso
In For certified applications of development fee waivers that Iicationlrand make
approval, City staff will review the certified applicant's app
appropriate recommendations to the City Council.
Impact Fee Waiver
a. For certified applications of impact
approval, the Water Department will
and grant appropriate incentives.
fee waivers that do not require Council
review the certified applicant's application
b. For certified applications of impatheec tifiedr applicantusr appl cationpand amake
Water Department will review
appropriate recommendations to the City Council.
Release of City Liens
For certified applications of release of City liens,
the appropriate liens.
REFUND t'O4�I�CY
CHI
the Housing Department will release-
Adopted 5-15-2007
17
NEZ to receive a refund of development.
In order for an owner/developer of a Project in a and impactfees or impact fees, the conditions set forth in the Refund of Development
Fee Policy, attached as Attachment "A", must be satisfied.
Villa 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 lications
7. Support for Low Income Housing Tax Credit (LIHTC) app mixed -use, density
8. Land use incentives and zoning/building code exemptions, e.g.,
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 p I to receive any
a. Subject to subsection (under the Tax Abatemeent Policy ndpBasic Incentives,
incentives provided for persons and organizations to
an owner/developer must meet with the following
discuss the Project:
1. the Council Member for the ror commuProject
nity (based organz ations registered
2. the neighborhood associations
with the city in the NEZ the Project is located.
b. Subsection (a) shall be satisfied upon: for the
1. the owner/developer meeting with the City rations Member commuDistrict
ty based
Project is located and the neighborhood assoc or
or
organizations registered with the city in tNEZ th ct he Project is looject iscated;
and
2. meeting with the City Council Memberforth
iding proof that the owner/developer attempted to
upon the owner/developer prov
meet with the neighborhood assnc{hteoNEZ the Projectns and the csnlocat d and the
organizations registered with the city
associations or organizations failed t arrange a meeting with the
owner/developer within two weeks of initial contact.
OFFICIAL EGUIRD
CITY SECRETARY
FORTANORTH g TX 18
Adopted 545-2007
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
required for NEZ Incentives so long as the Project meets the criteria outlined in the
relevant NEZ Strategic Plan.
X. Ineligible Proiects
The following Projects or Businesses shall not be eligible for any incentives under the City' of
Fort Worth's Neighborhood Empowerment Zone (NEZ) Tax Abatement Policy and Basic
Incentives:
1. Sexually Oriented Businesses
2. Non-residential mobile structures
GiTY.- SEQ ET'ARY
FORT WORTH, TX-.,
Adopted 5-15-2007
ATTACHMENT A
REFUND OF DEVELOPMENT AND IIVIPAG I FEES POLICY
Purpose
This refund policy is for the purpose of establishing the conditions under which the City
may refund development and impact fees, normally waived through the Neighborhood
Empowerment Zone (NEZ).
Applicability
Unless expressly excepted, this policy applies to all development and impact fees
waived by the City through the NEZ.
thNEZ Tax Abatement Policy and Basic Incentives, City Departments are
Under e
authorized to waive impact and development fees for qualified projects located in a
designated NEZ. The impact fees include only water and sewer impact fees, up to
$55,000 for commercial, industrial, mixed -use or community facilities projects. The
development fees that can be waived through the NEZ include:
1. All building permit fees (including Plans Review and inspections)
2. Plat application fee (including concept plan, preliminary plat, final plat, short form
replat)
3. Board of Adjustment application fee
4. Demolition fee
5. Structure moving fee
6. Community Facilities Agreement (CFA) application fee
7. Zoning application fee
8. Street and utility easement vacation application fee.
To take- advantage of these waivers, applicants need to obtain a certification letter from
the Housing Department.
Conditions for Refunds
The City will consider refunds only when circumstances beyond the developers control.
prevent them from obtaining the qualification letter from the Housing Department.
A property owner and/or developer may qualify for a refund if the proposed
development project meets all criteria to receive a fee waiver under the NEZ Tax
Abatement and Basic Incentives Policy and:
a. The owner and/or developer was not made aware of the NEZ incentives at the
time the fees were paid; or
b. The owner and/or developer was mistakenly told that his/her property was not in
:WFI L
a designated NEZ; or
CITY SEGREI AHY
FORT WOPTH -
Adopted 5-15-2007 20
c. The owner and/or developer has put funds in an escrow account with a City
Department while awaiting a decision from the City Council about his/her project;
or
d. City Council authorizes a City Department to issue a refund to the
owner/developer.
A refund charge will be assessed to help defray administration cost associated with the
processing of refund check. The charge shall be 20% of the amount of the refund. This
charge will be automatically deducted from the total refund amount.
Statute of Limitations
Any request, action or proceeding concerning the refund of fees normally waived
through the NEZ must be filed within ninety days following the date that the fees were
paid. An applicant who does not submit a refund request within 90 days of the
transaction shall not qualify for a refund.
To O"utaii � a refund the applicant needs to:
® submit a NEZ application to the Housing Department for determination of the
eligibility for NEZ fee waivers, and
submit a written request to the Department in which the fees were paid. Upon
receiving a confirmation from the Housing Department that the project meets all NEZ
fee waiver criteria, that Department shall process the request based on the
qualifications discussed in this policy.
Exemptions
The provisions of this policy do not apply to:
a. Fees that are not waived through the NEZ program; and
b. Taxes and special assessments; and
c. City liens such as mowing, board -up, trash, demolition and paving liens.
An applicant shall not qualify for any refund if:
a. The applicant was made aware of the NEZ incentives before he/she pays the
fees; or
b. The applicant does not meet the requirements for NEZ incentives at the time
he/she paid the fees; or
c. The applicant paid the fees before the refund policy was put in place; or
d. The applicant paid the fees before the designation date of the NEZ.
Disclaimer
f--; In the event of any conflict between the City's ordinances or regulations and this policy,
��such ordinances or regulations shall control. In the event of any conflict between this
FORT WORTH, TX
Adopted 5-15-2007 21
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.
FFi�IAI� FEVt
CITY SECRETARY
FILIT a,A!r)RTH T (
Adopted 54 5-2007 22
Exhibit B
Property Description
5804Grenada Drive; Lot 5; Block 2; Waterfront at Enchanted Bay; an Addition to the
City of Fort Worth, Tarrant County, Texas, according to the plat recorded and filed in
Cabinet A; Slide No. 11723, Plat Records, Tarrant County, Texas.
����CIAL RECORD
CITY SECRETARY
FORT WORTH, TX