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HomeMy WebLinkAboutContract 36949CITY SECRETARY Q CONTRACT NO. 1! 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. -_ ®FFICIA,- v4EGOR® CITY SECR�� TX FORTFORT WORT , 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, 2004Owner 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 foI which tax abatements are requested, certain improvements consisting of a single- family residence (collectively, the "Required Improvements"), of at least 1200 square feet of living space in size with 3 bedrooms and one and one-half baths, with 70% rtlRy mortared brick and having an appraised value of $80,000.00, as determined s an independent app raiser (collectively, the "Required Improvements"). Owner shall rovements before the provide a survey of the completed home showiisal after the saleng Required . The parties gree that home is sold and a copy of the independent appra the final survey and independent appraisal shall be a bstantial varAgreement if pproved bn labeled Exhibit E. Mmor variations, and more su writing by both of the parties to this Agreement, in the Required ushall noimprovements constitute an Event description provided in the Application for Tax Abatementto of Default, as defined in Section 4.1, provided that the conditions aresd for the plurposeseand in this Section 1.1 are met and the Required Improvements the manner described in Exhibit "D". 1.2. c;om le11U11 lJaw �� - -- Owner covenants to substantially complete construction t of thel building permit Improvements within one year from the issuance and p unless delayed because of force majeure, in which case ma eure two yeFor ars spurposesxof this by the number of days comprising the specific force A reement, force majeure shall mean an event beyond aowner's delays n reticontrol, pt of any g including, without limitation, delays caused by adverse required permits or approvals from any governmental authority, or acts of God, fires, q d mate shortages as strikes, national disasters, wars, riots anmaterial solabor d lediscretion, which hshall of be determined by the City of Fort Worth inurely unreasonably withheld, but shall not include construction dthe obtaining ys caused d of tadequate financial matters, such as, without limitation, delay financing. 1.3. Use of Premises. Owner covenants that the Required Improvements as the primary residence oft e Premises shall be sold so that it is continuously use Exhibit Home Buyer in accordance with the description of the out J ct the set the h Required In addition, Owner covenants that throughoutforth in Improvements shall be operated and maintained for the al purposes of encouragpurposes set ing p Agreement and indevelo me t of the Zone.a manner that is ent with t g development or re p Subject to and in accordance with this Agreement, the City hereby grants to Owner a real tax abatement on the Premises, the Required Improvements, as specifically provided property "Abatement" of real property taxes only includes City of Fort this Section 2 ("Abatement"), Worth -imposed taxes and not taxes from other taxing entities. 1Ai RECOFt'D cIJWY SEUn 'FORT , WpRi'VJ 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. 'Perm 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 (51h) 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 Term will begin on the date this agreement is executed and will end on the 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 fee of $25.00 per single family house. The application fee shall not be credited or refurided to any party for any reason. Ul " 3. 3.1. Inspection of Premises. y of the Term, at any Between the execution date of this Agreement and vements and elast following reasonable not ice time during construction of the Required Imp to Owner, the City shall have and Owner shall provide e aired Improvementsto the Premises ntor ensure the City to inspect the Premises and evaluate the q compliance with the terms and conditions of this egalem n Owner shall cooperate fully with the City during any such inspection an 3,2, Certification. Owner shall certify annually to the City that it is in coat the City's expense the mpliance with each applicable term of this agreement. The City shall have the right no laud n Exhibit D Owner must Required Improvement with respects to the specificatioits improvements as provide documentation that Owner is using the during he Compliance Auditing r Term residence (collectively, the Records) at any owner all in order to determine compliance with this Agreement. location ocat on in heeCity followbng Records available to the City on the Premises or at an reasonable advance notice by the City and shall otherwise cooperate fully with the City during any audit. 3.3. Provision of Information. 1 following the end of every year during the Compliance On or before February Auditing Term and if requested by the City, e00wner'sacomplian e w th each of the documentati o r thef hisiAgreement for ious year that that calendar years terms and conditions Failure to provide all information within theointroln SeOction 4,wner 1 required by this Section 3.3 shall constitute an Event of Default, as defined 3.4. Dete=mi"at'nn of Compliance. On or before August 1 of each year during the Compliance Auditing Term, the entage of Abatement City shall make a decision and rule on the actual annual perc available to Owner for the following year of the Term and shall notify Owvenner o year of decision and ruling. The actual per wnergs compliance wigranted for a go thtae of the tthe terms and conditions of the Term is therefore based upon O this Agreement during the previous year of the Compliance Auditing Term. FORT WORTH 1 4, EVENTS OF DEFAULT. 4.1. Defer Agreement if (1) Unless otherwise specified herein, Owner shall be in default of this Ag (ii) ad ails to construct the Required Improvements as defined in Section Owner f real property taxes with respect to the Premises or the Project, or its ad become valorem r p p ible personal property located on the Premises, protest taxes with respect to the tang p ro erl follow the legal procedure, for axes or delinquent and Owner does not timely and properly yor MISES AS PRIMARY and/or contest of any such ad valorem real prop rty tangible P RE personal prop y (iii) HOME BUYER DOES NOT U iv HOME BUYER DOES RESIDENCE ONCE THE ABATEMENT 7EAND APPENDIX B OF THE CODE OF NOT COMPLY WITH CHAPTER OF collectively, each an"Event ORDINANCE OF THE CITY OF FORT FORTH Default"). 4,2, Notice to Cure. Subject to Se ction 5, if the City determines that an Event he Daure lof the EventOf 90 calendar days from the date of receipt of this the City shall provide a written inettl ( t) Owner that describes caner reasonably Default. Owner shall have Y Owner shall written notice to fully cure or have cured the tovcure heDEvent of Default, believes that Owner will require additional ti after advising the City Council in an promptly notify the City in writing, in which case (i) Owner's efforts and intent to cure, Owner shall have one hundred eighty open meeting of ii if Owner calendar days from the original date of receipt °nton hundred eightyritten notice, r(180) days to (180) cafe y of Owner s reasonably be that owner will vising the City y Council in an open meeting b the City cure the Event of Default, a as may be of y efforts and intent to cure, such additional time, if any, Council in its sole discretion. namaes. of Default which is defined in Section 4.1 shall a 1 have then ghht If an Event the C y the time frame specifically diatelywed n Owner der acknowledges and agrees that an uncured terminate this Agreement im efault will (i) harm the City's economic development gan e redevelopment plc n°ed and Event of D y and (ill) efforts on the Premises and in the vicinity of the Premises; by the Cit ; es there expensive additional administrative °agre es thatdthe amounts actual damTherefore, otherwise harm the City, and Own g from are speculative in nature and will bey Event of De cult, Ownecult or impossible to r hall not be eligibled upon termination of this Agreement for any the Ci , as liquidate Term and Owner shall pay tY for the Abatement for the remaining with this Agreement for each year damages, all taxes that were abated in accordance IF 'RECORD R CITY 0RTA.I.X FORT WoFtTH, Default existed and which otherwise would have been paid to the City when an Event of agree that this amount is a in the absence of this Agreement. The City and Owner ill incur as a result of an roximation of actual damages that the City reasonable app rovide the City with s not a e4.3 This amount may be recovered by uncured Event of Default and that this Sectiopn 4.3 is intended top •alb the compensation for actual damages anro ert tax appraisal y the City through adjustments made to Owner's ad valorem h p Y this amount shall be sixty (60) days following the effective date of appraisal district that has jurisdiction h ner the Premises. Otherwise, amount is not due, owing and paid to the City within portion of this termination of this Agreement. In the event that all or any 60 days following the effective date interest termination of nlg paid to the City within sixty ( ) Y Agreement, Owner shall also be liable for all penalties and 1 the Code at the time of amount at the statutory rate for delinquent tcurrently, sectaxes, as ion e333.01 of the Code). the payment of such penalties and inter 4.4. Termination at Will. and Owner mutually determine that the development *ate oror sfeasible, If the e or the City Required Improvements are no long pp referable, the city and Owner may terminate this Premises or the anticipated Req y if the Term or that a higher or better use is p both parties• In this event, W Agreement in a written format that is signed by and (iii) Term shall expire as of the effective date ° to abat ad'on of this has commenced, the taxes previously Agreement; (ii) there shall be no recapture of any neither party shall have any further rights or obligations hereunder. 4.5. Sexuau ����.•�.... ------ a Owner understands and agrees the City has th�ealbusinesserminate this and agrees that the City has the right to eI ntainla agreement if the Project contains or will contain a sexually orient b. Owner understands a agreement as determined in City's sole discretion if the Project contains or g liquor store or package store. 5, EFFECT OF SALE OF PREMISES. other builder or Except for an assignment to Woodhaven Homes, L.P., or anY a ee or to era roved by the Housing Department Director, or OwneTimalrytTeS°iden e or the develop pp Required Improvements as its p a homebuyer who will use the Req agrees to, this Abatement cannot be homeowner's mortgagee which City Council hereby ag which consent shall not be prior consent of the City Council, assignee is assigned without the p the City Council finds that the proposed ii the unreasonably withheld provided that terms and conditions of this Agreement and ( ) financially capable of meeting convey anof its rights under Purchaser agrees in writing to assume all termsor conconditions �, its Y s of Owner under er proposed pu not otherwise assign, leas this Agreement. Owner may Council's prior consent shall Agreements Any attempted assignment without the City anted hereunder this Ag Agreement and the Abatement granted constitute grounds for termination of this n ten (10) calendar days of receipt of written notice from the City to Owner. following Fop`i- R�GORY� CIV FORT ee, or to a homebuyer who will use the Upon assignment to Owner s first mortgagee, idence or the homeowner's mortgagee, Required Improvements as its primary er this reement. In addition, Owner shall haduties ve no further obligatir entity Wnth the writtenconsent of City Council, Owner upon assignment to any otor obligati under this agreements shall have no further duty g Tr F THIS RE OF OWNER TO SEND THE CITY NO XECUIL TION OF THE THE FAILU DIED IMPROVEMENTS AND SALE OF THE REQ DIED NT OF THIS AGREEMENT WITH THE NEOW OWNER WITHIN 3 ASSIGNME DAYS OF THE TRANSFEOIN OOWTHE RS141P ATIC TERMINATION SE IMPROVEMENTS SHALL RESULT ENT THIS AGREEMENT. THE NOTICE AND EXECUTED AND DELIVERYM SENT TO THE CITY BY CERTIFIED MAIL OR 6. NOS S' written notices called for or required by this Ag eedru esignate sm writ ng,1by All wr or address as either party the following, or such other Party certified mail, postage prepaid, or by hand delivery: Owner: 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 OF�ICIA� �E�ORD CITY � FORT vVOF� 1 H9 Waterview Estates, L.P. Pars investment5 Inc., General Partner 3901 Airport Freeway, Suite 200 Bedford, TX 76021 7, MISCELLANEOUS. Tale JLJPonds. The Required Improvements will not be financed bystax the City increment bonds. This Agreement is subject to rights of holders of outstanding bond 7.2. Conflicts of Interest. ts covered y this Neither the Premises nor any of the Requiredthe City litany member of the Agreement are owned or leased by any member o Y ommission or any member of the governing body of any taxing City Planning or Zoning C units in the Zone. 7,3, Conflicts Between Documents. or City In the event of any conflict between the Citych ordinances oning nor regulationsr shall ordinances or regulations, and this Agreement, su y conflict between the body of this Agreement and Exhibit _ control. In the event of anbit "D", the body of this Agreement shall control. 7.4. Future Application. A portion or all of the Premises and/or Required es as a result of existing elawlbor for complete or partial exemption from ad valorem a future legislation. This Agreement shall not beconstrueddence that such exemptions do not apply to the Premises and/or Re quirImprovements. 7.5. Ci*y Council Authorization. This Agreement was authorized by the City Council through approval ,, Mayor and Council Communication No.C-22333 on November 21) 2onbehalf of, among C other things, authorized the City Manager to execute thisAgreement 7.6. Estoppel Certificate. Any party hereto may request an estopopel c t lal bona fide business pu poseet The long as the certificate is requested inconnect e addressed the certificate, which if requested will bAtoeemenOt� isein shall include, forceand effect necessarily be limited to, statements that this g without default (or if an Event of Default exists, the nature of the Event of Default and of this curative action taken and/or necessary to effect cu Abatement effect, nand su h other Agreement, the levels and remaining term of the matters reasonably requested by the party or parties to receive the certificates. OFF�Gt��. RECORD CITY Z:)C:%ssOJ X FORT WORTH, 7,7. Owner Standinrm. Owner shall be deemed a proper and necessary party in any litigation questioning or challenging the validity of this Agreement or orizin athis Agreement, and ny of the underlying l ownershallbe resolutions or City Council actions auth g 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 r Venue or any Texas and applicable ordinances, rules, State District lations or lCourt of Tarrant County, fTexas. action under this Agreement shall lie icies of the Cit) - in the the This Agreement is performable in Tarrant County, Texas. �,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 an provision of this Agreement is held to be invalid, illegalor not n any way Y the validity, legality and enforceability of the remaining provisions shall be affected or impaired. 7.11. Headin¢s loiot 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 deentire ninerstana erest,gand eement as to thermatters between the City and Owner, their assigns a su successors 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. ies and This Agreement shall not be amended unless executednma belnexecu exby ecuted inartmultip e approved by the City Council. This Agree Y counterparts, each of which shall be considered an original, but all of which shall constitute one instrument. C11 Z)�� � FORT NORTH, EXECUTED this ay of 2008, by the City of Fort Worth, Texas. 20085 by Waterview Estates, L.P., EXECUTED this �� daraof Pars Investment, Inc., General Partner. CITY OF FORT WORTH: By: �� T�s ��r,�-►ort�� Assistant City Manager ATTEST: By: City Secretary By: Mehrdad Moayedi President APPROVED AS TO FORM AND LEGALITY: By: Charlene Sanders Assistant City Attorney oR� c� cl S �RTH, FORT VV STATE OF TET RRANT § 1 COUNTY OF personally appeared the undersigned authority, F this day p oration, BEFORE ME, a municipal core FI w5r Manager of the CITY OF FORT WORTH, instrument, nkGtjAssistant City sub e to be the person and officer whose na e s the said CITY OF FORT WORTb , known tom perform the same y and acknowledged to c that the same hat he was duly authorized 1 of to the City of Fort Worth TEXAS, a municipal corporation, t of the said City for the purposes and consideration ro riate Mayor and Council Communication of the City app p and that he executed the same as the ac therein expressed and in the capacity therein stated. Gl��/EN UNDER GLtn� l4tot ry Public in and for the State of Texas Not yar s Printed Name SORT WORTH HAND AND My SE AL OF OFFICE thisday of W I*\ 5 AC�c�HEZ NOTARY pUBUG STATE of �'EXAs My comma 1XII j � STATE OF TEXAS § COUNTY OF TARRANT § eared Mehrdad Moayedi of the undersigned authority, on this day personally appeared General Partner, BEFORE ME, Inc., Waterview Estates, L.P., a Texas Limited Partnership, Pars Investments, instrument, and the known to me to be the person whose name is subscribed he uo purposes and foregoing o ideration therein acknowledged to me that he executed stated and as he the acte for tand deed of Waterview Estates, L.P., a expressed, in the capacity there hip, Pars Investment, Inc., General Partner. Texas Limited Partnersthis day of y HAND AND SEAL OF OFFICE GIVEN UNDER Notary Public in and for the State of Texas No— Printed Name M , 2008. �,��■�qAR X G ORS f .9 O�� W J'n!Fu�j1 - �p,URA `NAYIAND MY C0 M'Sion Expires July 1 A. 2008 Exhibit A: NEZ Incentives Exhibit B: Property Description Exhibit C' Application: (NEZ) Incentives and Tax Abatement Exhibit D: Project descrip tion including kind, numbeproposed r and location of the improvements $ Exhibit E: Final Survey and Independent Appraisal FORT WORTH, Exhibit A CITY OF FORT WORTH D EMPOWERMENT ZONE (NEZ) TAX ABATEMENT POLICY AND BASIC NEIGHBORHOOD INCENTIVES r ct 378 of the Texas Local Government Code allows dete mines Iity thattthe c eation Chapter when a .,,municipality Neighborhood Empowerment Zone (NEZ) 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; ublic safety provided to (3) an increase in the quality of social services, education, or p Y residents of the zone; or rdable housing in the zone. (4) the rehabilitation of affo" City, by aand Basic Incentives, will dopting the following NEZ Tax Abatement Policy Empowerment Zones. TheY� promote affordable housing and economic development in Neighborhoodnat NEZ incentives will not be granted after the NEZ expires as defined additional therms and in�enty es I as the NEZ. For each NEZ, the City Council may approve ermitted by Chapter 378 of the Texas Local GoveerXmrati n ofnt ea NEZ shalor by city Ccarry llits fullterm P tax abatement awarded before the p However, any by the City Council. according to its tax abatement agreement approved As mandated by state law, the property tax abatement under this policy applies to the owners of property. Nothing in the policy shall be construed as an obligation by the City of Fora Wort real P to approve any tax abatement application. II. DEFINITIONS "Abatement" means the full or partial exemption from City of Fort Worth ad valorem taxes on arf the a ro priate county appraisal district) eligible properties for a period of up to 10 ye ax roll on amouup ptax abatement agreements np of to 100% of the increase in appraised value (as reflected on the certified t resultingfrom improvements begun after the execution of the Eligible properties must be located in the NEZ. ert excluding land, as determined by the Tarrant County "Base Value„ is the value of the property, Appraisal District, during the year rehabilitation occurs. "Building Standards Commission" is the commission created under Sec. 7-77, Article IV. Worth City Code. Minimum Building Standards Code of the Fort „ . improvements such as new facilities and "Capital Investment includes only real property istin improvements, or personal property structures, site improvements, facility expansion, and neXacilitg modernization. Capital Investment does NOT include land acquisition costs and/or any plies and inventory). orient, and/or sup (such as maphi�Gq�'�P�,, CITY TX 1 A.W(Q9�-f 5-2007 "City of Fort Worth Tax Abatement Policy Statement" means the policy adopted by City Council on February 29, 2000. to "Commercial/Industrial Development Project" is a development proj thic (o proposes the construct or rehabilitate commercial/industrial facilities on property at s requirements to rehabilitate zoned commercial, industrial or mixed use as defined by the City of Fort be)Worth Zoning Ordinance. "Community Facility Development Project" is a development projecthich proposes toconstruct n truct or rehabilitate community facilities on property that allows suchuedefined by y 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 ies orstorage, the bui d ing at each eas wiflothin level, except that portion of the basement used only for 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. se ity or "Minority Business Enterprise (MBE)e' enved certification d "Women asseither r arr certed )MBE on certified certifiedwoman owned business that has r 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 nst ute 20ro e�centses tor moreconstruct the rehabilitate mixed -use facilities in which residential uses co p total gross floor area, and office, eating and entertainment, and/or retail sales and service uses constitute 10 percent or more of the ed utotalser as described bed by the City of Fort and is on property aWorth t is rZon Zoning toss floor area he requirements to be) zoned mix Ordinance. oses to "Multi -family Development Project"is a uo development property that is (oh meets the requ�ements to nstruct or rehabilitate multi -family residential living g nits be) zoned multi -family or mixed use as defined by the City of Fort Worth Zoning Ordinance. "Residential Project'; "Commercial/industrial Project'; "Mixed -Use Development "Reinvestment Zone" is an area designated Act co fited in Chapte�rt 12 of therTexas with the Property Redevelopment and Ta Fax 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. A �FFICIAL BEC RFORT \V C TX 2 Adopted 545-2007 In. A. RESIDENTIAL YEARS PROPERTIES LOCATED IN A NEZ- FULL ABATEMENT FOR 5 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 atax-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. Properly 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 atax-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 atax-delinquent status when the abatement application is submitted; and d. Property is in conformance with the City of Fort Worth Zoning Ordinance. B. MULTI -FAMILY DEVELOPMENT PROJECTS LOCATED IN A NEZ 1. 100%Abatement for 5 nears. 3 Abatements for multi -family development projects for up to Hous a s are subject u jectentfto City Council approval. The applicant may apply with 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 ily development project in a NEZ must satisfy constructed or rehabilitated multi-fam 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 o ent go°nd Urban 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 { s Council define d may waive or Department of Housing and Urban Development. city reduce the 20% affordability requirement on a case -by -case basis; and (a) For a multi -family development project constructed ftei NEZ designation, thavehe project must provide at least five (5) residentialg minimum Capital Investment of $200,000; or after NEZ (b) For a rehabilitation project, the property must be rehabil'ta ropertyshaltl be at east designation. Eligible Rehabilitation costs on the Such Eligible ible Rehabilitation costs 30% of the Base Value of the property. 9 must come from the rehabilitation of at least five (5) residential living units or a min_ Capital Investment of $200,0000 ears this section shall appiv. Abatements for multi -family development projects With theoHous Housing Department for Coi UP ity Council approval. The applicant may apply such abatements 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 Hpait:�i I 1C1 IL � o ��s I in 1 10, Multi -family projects shall be eligible for 100% abatement of City ad valorem taxes for years one through five of the Tax Abatement Agreement upon the satisfaction of. the following: At least twenty percent (20%) of the total units constructed or rehabilitated shall = be affordable (as defined by the U. S. Department of Housing o si 80o d of Urban FIGiAr'" RSe"C)pevelopment) to persons with incomes at or below eighty p ( ) area � - ��C,�r median income based on family size and such units shall be set aside for Ci� 15 2007 4 Adopted 5- - a the an Incoe as defineby persons at or below 80% of the ®evello mentor City Counc array waive or Department of Housing and Urban p reduce the 20% affordability requirement on a case -by -case basis; and a. For amulti-family development project constructed after NEZ ldesignation, havethe a project must provide at, least five (5) residential living s minimum Capital Investment of $200,000; or ust be rehabilitated after NEZ b. For a rehabilitation project, the property least designation. Eligible Rehabilitation cosis on the Such Eligible Rehabilitati nproerty shall be t costs 30% of the Base Value of theproperty. residential living units or must come from the rehabilitation of at least five (5) a minimum Capital Investment of $200,000. Years 6 throu h 10 of the i ax HpaLe► � �C� ��.r. • Multi -family projects shall be eligibleof the 1Tax 0Abatement l Agreement u uponprthe taxes for years six through ten satisfaction of the following: itated a. At least twenty percent (20%) of the total units constructed or Department of Housirng'land Urban be affordable (as defined by the percent (80%) of area Development) to persons with incomes at or below eighty p median inco�� e based on family size and such units shall be set e as defineci by sideUfor persons at or below 80 /° of the Development. City Council may waive or Department of Housing and Urban p uirement on a case -by -case basis; and reduce the 20% affordability req the 1. For a multi -family developm least pfi�eeC5 constructed al IivingNEZ untsslOR thave a project must provide at le ( ) minimum Capital Investment of $200,000; or ust be rehabilitated after NEZ 2. For a rehabilitation project, the property 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 min_ i� Capital Investment of $2001,000. 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; 20 utilization of certified minwomen for construction truction contracts; usiness enterprises for an agreed upon percentage of the total 3. property inspection; 40 commit to hire an agreed upon percentage of Fort Worth residents 50 commit to hire an agreed upon percentage of Central City residents 6. landscaping; 76 tenant selection plans; and 8* management plans. OFF�����=COMMERCIAL, INDUSTRIAL AND PROJECTS LOCATED IN A NEZ- FORT CITY TH Adopted 545-2007 COMIViUNITY FACILITIES DEVELOPMENT 1. less this section shau appiv. 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 The applicant must apply for the tax abatement and be approved by City Council before construction or rehabilitation is started. In order to. be eligible for a property tax abatement, a newly constructed or rehabilitated commercial/industrial and community facilities development project in a NEZ must satisfy the following: a. A commercial, industrial or a community facilities development project constructed after NEZ designation must have a minimum Capital Investment of $75,000; or b. For a rehabilitation project, it ueshall be at east 30° o od after NEZ f the Base Value bof Rehabilitation costs on the property the property, or $75,000, whichever is greater. 2. years this section sha�� appiv. Abatements agreements for a Commercial, Industrial and Community Facies Development projects for up to 10 ars are and Commuect 10 nity y Development tlDepartment for applicant may apply with the Economic such abatement. The applicant must apply for the tax abatement and be approved by City Council before construction or rehabilitation is started. Years 1 throu h b of theHuawi [ Jul IL � • ��• • •-• •- Commercial, Industrial and Community Facilities Development projects shall e 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: ities a. A commercial, industrial or a must hauls a minlimum Capital Investmentof constructed after NEZ des ig $75,000; or b. For a rehabilitation project, it mustbe shall be at east 30°0 od after NEZ f the Base nVal Eligible RehabilitationRehabilitation costs on the property the property, or $75,000, whichever is greater. ACV () R'�C RD iFORT \NbRTH1 - Adopted 545-2007 - Years 6 through 10 of the Tax Abatement Agreement Commercial, Industrial and Community Facilities Development projects shall be ity ad valorem taxes for years six through ten of eligible for 1%-100% abatement of C the Tax Abatement Agreement upon the satisfaction of the following: a. A commercial, industrial or a community facilities development project constructed after NEZ designation must have a minimum Capital Investment of $75,000 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; 3r commit to hire an agreed upon percentage of Fort Worth residents; 4o commit co hire an agreed upon. percentage of Central City residents; and 5. landscaping. D. MIXED -USE DEVELOPMENT PROJECTS LOCATED IN A NEZ 1. 100% Abatement of City Ad Valorem taxes for 5 Years less this section shall app� Abatements for Mixed -Use Development Project City Council approval. The applicant may apply such abatement. The applicant must apply for the tax abatement before construction or rehabilitation is started. pro s for up to 5 years are subject to with the Housing Department for and be approved by City Council In order to be eligible for md us e development project 'n a NEZ mtust s tisfy thle constructed or rehabilitated ixe 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, omore of the total Gross Floor A e'a of the project; on . project cstitute 10 p and (1) A mixed -use development project constructed after NEZ designation must OFFICIAL have a min_ imum Capital Investment of $200,000; or CITY SECRE a6 4 'FORT WORTH, TX Adopted 5-15-2007 7 ed after 2) For a rehabilitation project; it must o errthshal I be at east� (EZ 30°/ of the Base Eligible Rehabilitation costs on the prop Y Value of the property, or $200,000, whichever is greater. Abatements agreements for a Mixed Use Development projects ror u� �V � y��, licant may apply with the Housing are subject to City Council approval. The app Department for such abatement. on or The applicant Must apply for the tax abater�aba ent ement mustbefore y bel approved bbyaCity is started and the application for the tax Council. 'L OMH Years 1 throu h 5 of the Tax Abatement H ree�►�C' Mixed Use Development projects shall b{hel�TaxeAbatem0e/nt Agreement upon the valorem taxes for the first five years of satisfaction of the following: more of the total Gross a. Residential uses in the project constitute 20 percent or Floor Area of the project; and ce uses in the b. Office, eating and entertainment, and/ore total Gross Floor A il sales and serye'a of the project; project constitute 10 percent or more of th and c. A new mixed -use development project co 00 have a minimum Capital Investment of $2, OOO;eor for rehabilitation tproject, ion st onp ible tation must be rehabilitated after 0 Z f the case Value of the property, or $200,000, property shall bsts on the e at least 30 /o of the B whichever is greater. Years 6 throu h 10 of the Tax Abatement H r�C� � �,L Mixed Use Development projects shall b ars six through ten o f the'Tax Abatem0ent Agreement upoln the valorem taxes for ye satisfaction of the following: ect constitute 20 percent or more of the total Gross a. Residential uses in the proj Floor Area of the project; and in e b Office, eating and entertainment, and/or retail s les Floor Area of the project s and service uses project constitute 10 percent or more of the total aft r NEZ c. A new mixed use development project constructed for ea rehabilitation designation it have a minimum Capital In of $200,00 , �►�''` ° be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the c-ITY ECRET% ,,41 ; $ 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 d. Any other terms as City Council of the City of Fort Worth deems appropriate, including, but not limited to: upon percentage of the 1. utilization of Fort Worth companies for an agreed total costs for construction contracts; for 2, utilization of certified minority and w total costs costs for onstruction contractbusiness s; an agreed upon percentage of the to 3, property inspection; ercentage of Fort Worth residents 4a commit to hire an agreed upon p 5. commit to hire an agreed upon percentage of Central City residents 6. landscaping; 7. tenant selection plans; and 8, management plans. ABATEMENT GUIDELINES ty cil will ermine 1 If a NEZ is located in a Tax Increment Financing 9 Distric in (Sect on III will beoffered on a case -by -case basis if the tax abatement incentiveso eligible Projects. Eligible Projects must meet all eligibility requirements specified t g in Section III. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order 2• I for a tax abatement under this Policy, the to be considered eligible" to app y Woodhaven Community Development Corporation and the Woodhaven Nei hborhood Association must have submitted a letter of support for the Project to g the City of Fort Worth r a tax abatement, the property owner/developer 3. In order to be eligible to apply fo must: a property taxes for any property owned by the a. Not be delinquent in paying g p p y p enter into a tax abate ent agrerl except ement with thetan city of Fort Worth for arspec specific Project if: abatement agre 1. the Project meets NEZ tax abatement onsible for the taxedelinquency for the Property; 2. the applicant is not resp and a off the taxes under the 3. the applicant enters into an agreement top y guidelines permitted under state law; and 4. the tax abatement shall provide that thelagreement shall take effect after the delinquent taxes are paid in ful City of Fort Worth liens filed against any property owned by the b. Not have any Y wee veloper. "Liens" include, but are not limited to, applicant property owner/de liens, demolition liens, board-up/open structure liens and paving liens. 4. Proje cts to be constructed on property to be purchased under a contract for deed are not eligible for tax abatements. -09 Adopted 5-15-2007 5. owner of a residential property (including multi -family) in the Once a NEZ property ions lies for an NEZ satisfies the criteria set forth in Sect a flax abatement agreement with the City abatement, a property owner may enterterminate A Fort Worth. The tax abatement agreementesth all inuvio at on lf the of the City ofFort property subject to the tax abatement agreem Standards Code and the owner is convicted of such north's Minimum Building violation. it forth in be A tax abatement granted under the criteria se eof as lm can slpecified in only the granted once for a property in a NEZ fora maximum term agreement. If a property on which tax is being abated is solshed new oily will submits sign the tax abatement agreement for the remaining erm once application. A property ownerldeveloper of a multifamily develop, project in the NEZ who (desires a 7 p p community ent iuindder and o'nsdlll BeC or D must: tax abatement ections 111.B, C or D, as applicable? and Sections a. Satisfy the criteria set forth in S III.E.1 E.2; and E3. and I J n nartment, as applicable; and b. File an application with the r,ousiny DeFs.�. -. er must enter into a tax c. The property ownabaofma reemrentmthe tax abatementent with the U FortFort Worth. In addition to the other terms gterminate if agreement shall provide that the agreemoent f the City of Fortlh Worth's Minimum owner receives one conviction of a violate property subject to the abatement Building Standards Code regarding the pro p Y agreement during the term of the tax abatement agreement;abated is sold tithe new owner may nd d. If a property in the NEZ on which tax is being property for the remaining terms enter into a tax abatement agreement on the prop Y ty Council as the 8. If the terms of the tax abatement agreement iai-rient°In the eventmet, the 'of cancellathon, the right to cancel or amend the abatement agre reca ture of abated taxes shall be limited to the year(s) in which the default occurred p or continued. review 9. The terms of the agreement shall include thecity in each earthduri ng tthe life of the and verify the applicants financial state agreement prior to granting a tax abatement in any given year, 2 () conduct an on site the inspection of the project in each year during the life of the abatement to verify p 3 terminate compliance with the terms of theotax bonta contain sexually noriented business ( 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 to insure compliance tthe City Council. ith the terms f the agreement. Any incidents of non-compliance w p -4 .On or:4before February 1st of every year during the life of the agreement, any • r�i�r' Al or entity receiving a tax abatement from the City of Fort Worth shall CITY SE .10 Adopted 5-15-2007 IV A. provide information and documentation which details the property owner's n compliance with the terms of the respective mrof theagreement�l certify Failure to deport owner is in compliance with each applicable tove this information and to provide the required certification abated in prior yearbleingsdule abo result in cancellation of agreement and any taxes and payable. the new owner may 11. if a property in the NEZ on which tax is being abated for thle remaining term. Any enter into a tax abatement agreement wh which is propertyhe of permitted in the tax abatement sale, assignment or lease of the property agreement results in cancellation of the iagree ed nment occur emment and dure of any taxes abated after the date on which an unspecified ass g APPLICATION FEE 1. An application fee of $25.00 for all basic incentives, excluding tax abatementse tax abatements governed under Section III.A is 2. The application fee for residential $100. unity 3 The application fee for muiti4amily, commercial industrial, Sections III B.mC. and facilities one mixed -use development projects governed underit with a half of one percent (0.5%) of the proposed ProcationCFee ashall notbecredited 20or minimum to any tnto arty exceed or a$ reason. Application refundedy p FEE WAIVERS ELIGIBLE RECIPIENTS/PROPERTIES case basis whether a Project that will 1. City Council shall determine on a casebstore is eligible to apply for a fee contain or contains a liquor store or package waiver. 2. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order I for a fee waiver under this Policy, the Woodhaven to be considered "eligible" to apply Community Development Corporation and the Worrtdor the Project to he City of Fort Association must have submitted a letter of supp 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 waive, s. owner/developer to be eligible to apply for fee waivers for a 4. In order for a property owner/developer: Project, the property f-? RECO' st submit an application to the City; �ii�r �A CST` F0'-�' ri�TH, Adopted 5-15-2007 11 in paying property taxes for any property owned by the b. must not bedelinquent applicant; the applicant owner/developer or app again any property owned by c. must not have any City liens filed ag property owner/developer, including but not limited to, weed liens, demolition. prop Y liens, board-up/open structure liens and paving liens; and Project is ro'ect that will contain or contains a liquor store, package store or a sexually d, of a P ) Council's determination that the oriented business for fee waiversa City eligible to apply L _ Aa ^r,-,crl fn be g, pEVELOPMENT FEES roved and certified by the City, the Once the Application for NEZ Incentives has been app es for services erformed b the Cit of Fort Worth c sr that expend at east ects in the NEZ following fees ro ects or rehabilitate p ) are waived for new construction ert on Eligible Rehabilitation costs: 30% of the Base Value of the property g 1. All building permit related fees (including Plans Review and platpfinal plat, short form 2. Plat application fee (including concept plan., replat) lication fee 3. Board of Adjustment app 4. Demolition fee 5. Structure moving fee CFA) application fee 6. Community Facilities Agreement 7. Zoning application fee application fee g. Street and utility easement vacation g. Ordinance Inspection Fees Application Fees 10. Consent/Encroachment Agreement App approval by Other development related fees not specified above will be considered for City Council on a case -by -case basis. C, IMPACT FEES ects in the NE7 .- 1. Single family and multi -family residential development prof lied. Automatic 100%waiver of water and wastewater impact fees will be applied* 2. Commercial, industrial, mixed -use, or community facility development projects in the NEZ. a. Automatic 100% waiver of water and wastewater impact fees up to $55,000 or equivalent to two 6-inch meters for each commercial, industrial, mixed -use o q project. community facility development proj act fee waiver exceeding $55,000 or requesting a b. If the project requests an imp approval is RE( ..waiver for larger and/or more than two 64nch meter, then City Council kL OFFA CITE SECRETS 0FkT. -W H 12 Adopted 5-15-2007 V. A. required. Applicant may request the additional through the Housing Department. RELEASE OF CITY LIENS amount of impact fee waiver ELIGIBLE RECIPIENTSlPROPERTIES all determine on a case -by -case basis whether a Project that will 1. City Council shall package store is eligible to apply for a fee contain or contains a liquor store or waiver. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order 2 1 for release of city liens under this Policy, the to be considered "eligible" to apply Woodhaven Community Development Corporation and the Woodhaven rt for Project to Neighborhood Wort ationowevefhave once the NEZ Planletter submitted for the Woodhaven the City of Fort Worth h 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. ert owner/developer to be eligible to apply for a release of city 4. In order for a prop Y C D., and E. for aw Project, the property liens contained in Section V.B., owner/developer: a, must submit an application to the City; owned by the b. must not be delinquent in paying property taxes for any property owner/developer; a Building Standards Commission's Order of b. must not have been subject was demolished within the last five (5) years; Demolition where the prop Y propertyowned c. must not have any City of Fort Worth liens filed against any other s ot limited to, by the applicant property own weed "Liens" includes, en structure liens and paving liens; and oil liens, demolition liens, board-up/op package store or a sexually do of a Project that contains or will contain a liquor store, p oriented business has received City Council's determination the Project is eligible to apply for release of City liens. n order for a Rehabilitation Project to qualify for a release of city liens, the 5 I p of at lease owner/developer must spend Eligible Rehabilitation costs on the Property 30% of the Base Value of the Property. 6. Li ens shall be released once the Project Improvements have been made to the property. 7. An liens filed after the initial certification of the property shall not be released. Y g, WEED LIENS The following are eligible to apply for release of weed liens: oar° ernes. ��`., w 'P1 1Single unit owners performing rehabilitation on their prop \NORM 1s 'Adopted 5.o.150002007 elopers constructing new homes oncommerc al, industrial, mixed -use, 2. Builders or dev 3. Owners performing rehabilitation on multi Y or community facility properties. 4. Developers constructing new multi -family, commercial, industrial, mixed -use or community facility development project C, DEMOLITION LIENS Builders or developers developing or rehabilitating a property for a Project are eligible to to apply for release of demo30,000. Releases of demolition liens in lition liens for up $ roval* excess of $30,000 are subject to City Council app p, NS BOARD-UPlOPEN STRUCTURE LIE The following are eligible to apply for release of board-up/open structure liens:properties 1. Single unit owners perfcrmiS g t��g new's single family homes on vacant lots. onru2. Builders or developers 3. habilitation on multi -family, commercial, industrial, mixe -use, Owners performing re or community facility properties. Developers constructing multi -family, commercial, industrial, mixed -use, or T community facility projects. E, PAVING LIENS The following are eligible to apply for release of paving liens: ir iess 1. Single unit owners performing rehabilitattion on theon' vacantrlots. 2. Builders or developers constructing ne 3. Owners performing rehabilitation on multi -family, commercial, industrial, mixed -use, or community facility properties. 4. Developers constructing multi -family, commercial, industrial, mixed -use, or community facility projects. VI. PROCEDURAL STEPS A, APPLICATION SUBMISSION 1. The applicant for NEZ incentives under Sections centivesslnln and pay the appeopr ate te and submit a City of Fort Worth "Application for NE application fee to the Housing Department, as applicable. an 2. The applicant for incentives under Sections III.C.2 and D.2� must also the plete ate submit a City of Fort Worth Application for Tax Abatement an p Y application fee to the Economic Development Office. The application fee, review, evaluation and approval will be governed by City of Fort Worth Tax Abatement Policy. Statement for Qualifying Development Projects. B_ CERTIFICATIONS FOR APPLICATIONS UNDER SECTIONS Ilia IV, AND V :)V:f ` lication for accuracy and CIV Elthe HoUsing Department will review the app !T 14 Adopted 5-15-2007 C. leteness. om Once the Housing Department determines that the application is c p Department will certify the property owner/developer's complete, the Housing applicable. Once an applicant's eligibility to receive tax abatements and/or obcasi YT as incentives based on the criteria se forth in Section III., IV., and V. of this prtment will inform appropriate departments eligibility is certified, the Housing De Y P with City departments and the administering the incentives. An orientation meeting applicant may be scheduled. The departments include: d multi- a. Housing Department: property tax abatement for residential properties an family development projects, release of tax ity abatement for commercial, b. Economic Development Office: property industrial, community facilities orfee wevelopment projects. c. Development Department: ss d. Water Department:departmentsW f (applicable. e. Other appropriate 2. Once Development Department, Water Department, Economic Development Office, and/or other appropriate department receive out a "Verificationplication of NEZ Incentivesthe for Department, each department/officeation"halnd'Ireturn it to the Housing Department for Certified NEZ Incentives App licrecord keeping and tracking. APPLICATION REVIEW AND EVALUATION FOR APPLICATIONS 1. Pro erty Tax Abatement for Residential Properties and Multi -family Development p Projects a. For a completed and certified application for no more than five years of tax ith p, the City Manager shall execute a tax abatement, wCouncil aproval abatement agreement with the applicant. b. For a completed and certified multi -family development project application for more than five years of tax abatement: completed and certified application (1) The Housing Department will evaluate a based on: (a) The project Is increase in the value of the tax base. (b) Costs to the City (such as continfrasracts tructure pedlt pation, etc.). (c) Percent of constructs (i) Fort Worth based firms, and (ii) Minority and Women Owned Busin applicant may negotiate. ss Enterprises BEs). (d) Other items which the City and the (2) Consideration by Council Committees Department may present Based upon the outcome of the evaluation, Housing the application to the City Councils Economic Dorto the Economic Should the Housing Department present the application Development Committee, the Committee will consider the application at an open meeting. The Committee may: Approve the application. Staff will then incorporthe City the application withtthe OFFICIAL R o a (a) Pp ECRET - A. tax abatement agreement e s recommendation to pp approve sent a CITY S � Committe ' rove the agreement; or FORT . WORTH a 15 Adopted 545-2007 (b) Request modifications to the application. Housing Department staff will ith the applicant and then, if the discuss the suggested modifications w requested modifications are made, resubmit the modified application to the Committee for consideration; or appeal the Committee's finding (c) Deny the application. The applicant may by requesting the City Council to: (a) disregard the t application into he committe's finding dtax and (b) instruct city staff to Incorporate ider abatement agreement for future consideration by the City Council. (3) Consideration by the City Council rove or deny any tax abatement The City Council retains sole authority to approve tax abatement agreement and is under no obligation to approve any ment. The City of application or tax abatement agFort orth is uner no n anyamount or value to any applicants obligation to provide tax abatement 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 whichun essiotherw'se ccuspec'fed in the ancy (CO) is issued for the qualifying development project tax abatement agreement). Unless ohherwise specified ifiea in the h aable agreement, taxes levied during the construction of the project 2. property Pro ert Tax Abatement for Commercial, Industrial, Community Facilities, and Mixed -Use Development Projects han e years of tax a. For a completed and certified applicthenCii r Manager no more shall v shall execute a tax abatement, with Council approval, Y abatement agreement with the applicant. b. Fo r a completed and certified application for more than five years of tax abatement: (1) nt Office will evaluate a completed and certified The Economic Developme application based on: (a) The project's increase in the value of the tax base. (b) Costs to the City (contractsructure committedlto ation, etc.). (c) PE,rcent of construction (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 of the evaluation, the Economic Development Based upon the outcome office may present the application to the City Council's Economic ent present Development CommitteeShould the onomic . oment Committee, the Committee will the application to the Economic Deve1 p consider the application at an open meeting. The Committee may: OFFICIAL RECORD CITY SECRETARY FORT NOP. 16 Adopted 5..15-2007 (a) Approve the app lication. 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 appeal the Committee's finding (c) Deny the application. The applicant may app by requesting the City Council to: (a) disregard the Committee's finding ion and (b) instruct city staffto incorporate the consideration by the City tCounc to a tax abatement agreement for future (3) Consideration by the City Council The City Council retains sole authority o approve rovenan n tax abatement agreement and is under no obligation to approve Y application or tax abatement agreement. The City of Fort Worth is uiidantno obligation to provide tax abatement in any amount or value to any app c. Effective Date for Approved Agreements All tax abatements approved by the City Council will become effective on January 1 of the year following the year in which a Certificate of Occupancy (CO) RS in the is issued for the qualifying development project specified in thel ag Bemse ent taxes le tax abatement agreement). Unless oable. levied during the construction of the project shall be due and pay 3. Development Fee Waivers a. For certified applications of development fee waivers that do not require Co's approval, the Development Department will review the certified applicants application and grant appropriate incentives. b. For certified applications of development f app licant's lica's application waivers ntrequire and make approval, City staff will review the certifiedp appropriate recommendations to the City Council. 4, Impact Fee Waiver a. For certified applications of impact fee waivers that do not require (cation ouncil approval, the Water Department will review the certified applicant'spp and grant appropriate incentives. l, the b. For certified applications of impact fee waivers that equir aCoun til app d amake Water Department will review the certified applicant appropriate recommendations to the City Council. 5. Release of City Liens For certified applications of _release of City liens, the Housing Department will release 01rViGjA - the appropriate liens. CIT ,YEGRL FUND POLICY 1:0 17 Adopted 5-15-2007 NEZ to In order for an owner/developer of a Project in the Refund iv Development and Impact fees or impact fees, the conditions set forth Fee Policy, attached as Attachment "A", must be satisfied. Alin OTHER 114CENTIVES 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 applications 7. Support for Low Income Housing Tax Credit (LIHTC) app i mixed -use, density 8. Land use incentives and zoning/building code exemptions, e.g., bonus, parking exemption g. 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. ►X, Public Notification I to receive any a. Subject to subsection (b), in order for an owner/developer to app y incentives provided for under the NEZ Tax AbatementooN/'a sons and oPolicy and aganizationsic Incu" lseto an owner/developer must meet with the g p discuss the Project: 1. the Council Member for the District the Project is located; and 2. the neighborhood associations or community based organizations registered with the city in the NEZ the Project is located. b. Subsection (a) shall be satisfied upon: I. the owner/developer meeting with the City Council Member for the District the Project is located and the neighborhood associations or community based organizations registered with the city in the NEZ the Project is located; or 2. meeting with the City Council Member for the District the Project is located and iding proof that the owner/developer attempted ty upon the owner/developer provbased meet with the neighborhood associations and the community organizations registered with the city in the NEZ the Project is located and the associations or organizations failed to arrange a meeting with the. � ;IA owner/de�re�oper within two weeks of initial contact. C! 4 Adopted 5-15-2007 18 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 Proiecfis 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 OFFOAL CITY SECRETARY ORT \N Adopted 5-15-2007 ATTACHMENT A REFUND OF DEVELOPMENT AND IMPACT FEES POLICY Purpose This refund policy is for the purpose of establishing the conditions under which the City may refund development and impact fees, normally waived through the Neighborhood Empowerment Zone (NEZ). Applicability Unless expressly excepted, this policy applies to all development and impact fees waived by the City through the NEZ. Under the NEZ Tax Abatement Policy and Basic Incentives, City Departments are authorized to waive impact and development fees for qualified projects located in a. designated NEZ. The impact fees include only water and sewer impact fees, up to $55,000 for commercial, industrial, mixed -use or community facilities projects. The ��_ ire .iffaA development fees that can be waived tnrougn «le NEEZ. include: 1. All building permit fees (including Plans Review and Inspections) 2. Plat application fee (including concept plan, preliminary plat, final plat, short form replat) 3. Board of Adjustment application fee 4. Demolition fee 5. Structure moving fee 6. Community Facilities Agreement (CFA) application fee 7. Zoning application fee 8. Street and utility easement vacation application fee. To take advantage of these waivers, applicants need to obtain a certification letter from the Housing Department. Conditions for Refunds The City will consider refunds only when circumstances beyond the developers control. prevent them from obtaining the qualification letter from the Housing Department. A property owner and/or developer may qualify for a refund if the proposed development project meets all criteria to receive a fee waiver under the NEZ Tax Abatement and Basic Incentives Policy and: a. The owner and/or developer was not made aware of the NEZ incentives at the time the fees were paid; or b. The owner and/or developer was mistakenly told that his/her property was not in a designated NEZ; or O1-FICCIV SECRETARY QRT \NORTk Ty Adopted 545-2007 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 obtain a refund the applicant needs to: submit a NEZ application to the Housing Department for determination of the eligibility for NEZ fee waivers, and ® submit a written request to the Department in which the fees were paid. Upon receiving a confirmation from the Housing Department that the project meets all NEZ fee waiver criteria, that Department shall process the request based on the qualifications discussed in this policy. Exemptions The provisions of this policy do not apply to: a. Fees that are not waived through the NEZ program; and b. Taxes and special assessments; and c. City liens such as mowing, board -up, trash, demolition and paving liens. An applicant shall not qualify for any refund if: a. The applicant was made aware of the NEZ incentives before he/she pays the fees; or b. The applicant does not meet the requirements for NEZ incentives at the time he/she paid the fees; or c. The applicant paid the fees before the refund policy was put in place; or d. The applicant paid the fees before the designation date of the NEZ. Disclaimer (�� Jr v n� o���. `onflict between the City's ordinances or regulations and this policy, � s shall control. In the event of an conflict between this C'f�linances tl�r�regulation y FORT ::. 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.