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HomeMy WebLinkAboutContract 36956CITY SECRt=TAmy CpNTRACT NO, 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. "I K01,16to 03-Z8-08 A08:06 IN idline and criteria overning ax ll, The NEZ Incentives contains appropriate gtheeC tysas contemplated by Chapter abatement agreements to be entered y 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 oneE) powerment Reinvestment Zone No. 16," City of Fort Worth, Texas n NEZ F, Owner owns certain real property located entirely hibit "B within attached hereto f and ohereby and that is more particularly described in _— made a part of this Agreement for all purposes (the "Premises"). ned in G, Owner or its assigns plan to construct their* esRequired be used for asta single-family SectionSection 1.1 of this Agreement, on the Pr residence that will be owner occupied. (the "Project"). g, On August 13, 2004, Owner submitted a perning the contemplated use of the application for tax abatement to lication for NEZ incentives and an the City concerning Premises (the "Application"), attached hereto as ExhiExhi=°C" and hereby made a part of this Agreement for all purposes. the red I, The City Council finds that the contemplated d the terms of this Agreements are Improvements, as defined in Section 1.1, an ouraging developmem 1 ance with f the Zone the NEZ accordancein consistent with encincentives, the purposes for its creation and are In co p Resolution and other applicable laws, ordinances, rules and regulations. J, The City Council finds that the terms of this Agreement, of the NEZ In entives.s and Required Improvements, satisfy the eligibility criteria ement� along with a K, Written notice that the City intends to enter into erne grxescribed by the Code copy of this Agreement, has been furnished in the p to the presiding officers of the governing bodies of each of the taxing units in which the Premises is located. NOWTHEREFORE, the City and Owner, for agree in Won of the terms and , conditions set forth herein, do hereby contract, covenant an as foil I, OWNER'S COVENANTS. I,i, Real Property Improvements. Owner shall construct, or cause to be constructed, on each lot within the Premises for which tax abatements are requested) cert imps rovements"")> of at least 1200 square family residence (collectively, the Required p feet of living space in size with 3 bedrooms and one and one-half baths, with 70% mortared brick and having an appraisedRequired�improvOe "y an ment d).as owner ninedshall independent appraiser (collectively, the "Required provide a survey of the completed home showingl after the saleRequired . The parties agrovements ree that home is sold and a copy of the independent appraisad shall the final survey and independent appraisal shall be s substantial vapart of this Aat ons Agreement approved be labeled Exhibit E. Minor variations, and more writing by both of the parties to this Agreement, in the Required not Improvements utte an Event description provided in the Application for Tax Abatement of Default, as defined in Section 4.1, provided that theconditions arelused fo the plurposeseand n this Section l a are met and the Required Improvements the manner described in Exhibit "D". on of of the Owner covenants to substantially complete and receipt t of the building permit Improvements within one year from the issuance a P tende unless delayed because of force majrs shall eure, in which c the& two yeForpurposesxthis s by the number of day s comprising the specific force J e. Agreement, force majeure shall mean an event beyond by weather, delays n retie pt ofany including, without limitation, delays caused authority, or acts of God, fires, required permits or approvals from any governmentalshortages as strikes, national disasters, wars, riots and material e is 1 soleabor restrictions discretion, which hdshall not be determined by the City of Fort Worth iely unreasonably withheld, but shall not include construction dthe of of ys caused due to pur financial matters, such as, without limitation, delay financing. 1.3. Use of Premises. Owner covenants that the Required improvements as the 11 primary residence oft e Premises shall be sold so that it is continuously used p Home Buyer in accordance with the description of a throughout Project theet Termh in the the Required In addition, Owner covenants that thro g I� in this he purposes set forth mprovements shall be operated and maintained he teneral purposes of encourag0ing Agreement and ledevelo ment of the Zone.a manner that is ent with g development or r p Subject to and in accordance with this Agreement, the City hereby grants to Owner a real ro tax abatement on the Premises, the Required Improvements, as specifically provided property y "Abatement" of real property taxes only includes City of Fort this Section 2 ("Abatement") . Worth -imposed taxes and not taxes from other taxing entities. 2.1. Amount of Abatement. The actual amount of the Abatement grantedand the Required Improvementslover based upon the increase in value of the Premises 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 approf his Agreement, ised aaeoOwner hallnot Improvements are less than as provided in Section 1.1 be eligible to receive any Abatement under this Agreement. 2.2. Increase in Value. The abatement shall apply only to taxes on t he increase in value of the and onithe due to construction of the Required Improvementsnd shall not apply to taxes land. 2,3, Term of Abatement. The term of the Abatement ("Term") shall begin on January 1 of the year fold to a Home llowing the calendar year in which a Required ng D ell) )tand,is ounless sooner Buyer to be used as its primary residence( g precedingely terminated tas herein provided, shall innin Date Upon hed on December 31 lsa e of a Home Buyer,, the fifth (5 ) anniversary of the Beginning in City shall certify that the Required Improvoowever, the Compliances have been Audient ting satisfaction of the terms of the agreement. H Term will begin on the date this agreement is executed and will end on the expiration fate of the Term. 2,4, Protests Over A Owner shall have the right tOoveme is thereon test any or all appra assessments of the Premises and/or impr isals or 2.5. Abatement Application Fee. The City acknowledges receipt from Owrier of the require not bebcredit d oppefurided fee of $25.00 per single family house. The application fee shall t0 any party for any reason. 3. 3.1. Inspection of Premises. y of the Term, at any Between the execution date of this Agreementro ements and efollowlast ing reasonable notice time during construction of the Required Imp to Owner, the City shall have and Owner shall provide Required Improvements ccess to the Premises ntorensne the City to inspect the Premises and evaluate the compliance with the terms and conditions of this egaluation. Owner shall cooperate fully with the City during any such inspection and 129 Certification. Owner shall certify annually to the City that it is in compliance with each applicable audit at the City's expense the term of this agreement. The City shall have the right no listed m Exhibit D Owner must Required Improvement with respects to the specificatioits provide documentation that Owner s using tim timeimprovements as duringCompliance Auditi griTerm residence (collectively, the Records) at any owner in order to determine compliance with this Agreement. llocation on in the Ct y following Records available to the City on the Premises or at another 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 the Auditing Term and if requested by City, 00wner iscompliancewith each of the documentation for the previous year that addresses terms and conditions of this Agreement for that calendar year. tion within the fined in SeOwner ct n 4.1 required by this Failure to provide all informa Section 3.3 shall constitute an Event of Default, as de 3.4. Determination of Compliance. On or before August I of each year during the Compliance Auditing Term, the City shall make a decision and rule on the actual 11a1 and lshallcnotify Ownege of r of Abatement available to Owner for the following year of the decision and ruling. The actual percentage of the Abat W �httheaterms and nted for a conditions of the Term is therefore based upon Owners compliance previous year of the Compliance Auditing Term. this Agreement during the prev 4, ES OF DEFAULT. VENT 4.1. Def_ i Owner shall be in default of this Agreement if (i) Unless otherwise specified herein, in Section (11) ad Down er fails to construct the Required Improvements as detheeProject, o is ad valorem valorem real property taxes with respect to the Premises o become taxes with respect to the tangi ble personal property located on the Premises, delin q uent and Owner does not timely and properly followthelegal procedures for protest and/or contest of any such ad valorem real property or tangible personal property taxes or (ui) OES NOT USE THE PREMISES HOME BUYER DHOME BUYER DOES RESIDENCE ONCE THE ABATE OF APPENDIX B OF THE CODE OF NOT COMPLY WITH CHA collectively, each an "Event of ORDINANCE OF THE CITY OF FORT WORTH Default'). 4,2, Notice to Cure. t has occu Subject to Section 5, if the City determines that an Event the nature lof the Event eof J the City shall provide a written notice to ownerndarhdayssfrom the date of receipt of this Default. Owner shall have ninety (90) reasonably to written notice to fully cure or have cured the Event of DEvent oflD Oault,rowner shall believes that Owner will require additional time to iure the after advising the City Council in an promptly notify the City in writing, in which case (') Owner shall have one hundred eighty Open meeting of Owner's efforts and intent to cure, ii if Owner he wr* 180 calendar days from the original date of receiphant of tone hundred eighty itten notice, r(180) days to reasonably be that Owner will require more t an open meet* F cure the Event of Default, after advising the City Council as may be offer d by the City efforts and intent to cure, such additional time, if y, Council in its sole discretion. If an Event of Default which is defined in Sectiothe Chasshallbhave then ght to Y the time frame specifically allowed under Section 4. wledges and agrees that an uncured terminate this Agreement immediate) Ci0 owner neconom9 development and redevelopment Event of Default will (i) harm the y forts on the Premises and in the vicinity of the P evolvement by the City; and (h i) of expensive additional administrative oversight and i ual ages there other wise harm the City, and Owner agrees that the amounts nble t ascertainmTherefore, from are speculative in nature and will be difficult or imp for any Event of Default, Owner shall not be eligible Ityas for the dated Abatement for the remaining Term and Owner shad pA reement�for l upon termination of this Agreementthe C' iqui each year damages, all taxes that were abated in accordance with t g d to the been pa when an Event of Default existed and which otherwise nerla lreeethat this lamount Ista in the absence of this Agreement. The City and Ow g reasonable approty will incur as a result of an ximation of actual damages that the n ended to provide the City w th uncured Event of Default and that this Section 4.3 is by compensation for actual damages and is not a penalty. This amount max aay e raisal by h e p the City through adjustments made to Owner's ad valorem property this amount shall be appraisal district that has jurisdiction over the Premida s sess Otherwise, effective date of g due, owing and paid to the City within sixty (60) Y ent that all or any ortion of this amount is not termination of this Agreement. In the s following the effective date of termination of this paid to the City within sixty (60) day Agreement, Owner shall also be liable for all penaltie interest b the Code at the time of g amount at the statutory rate for delinquent taxes, as determined the payment of such penalties and interest (currently, Section 33.01 of the Code). 4.4. Termination at Will. e of If the City and Owner mutually determine that the longereeapp opr ate orlopment or sfeasible, Premises or the anticipated Required Improvem he sCl y and Owner may terminate this or that a higher or better use is preferable, eve if the Term Agreement in a written format that is signed by effective date oflthe termination of this has commenced, the Term shall expire as of th Agreement; (ii) there shall be no recapture of any taxes prey ously abated; and neither party shall have any further rights or obligations hereu 4.5. Sexuau orir�►«.. ,.,,.�...-�-- -- a, Owner understands and agrees the City has oriented lbusiness* erminate this agreement if the Project contains or will contain a sexually b Owner understands and agrees that the CPT has tcontains oe right � will containla agreement as determined in City's sole discretion if the 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 r to developer approved by the Housing Department Dire ents astor� or otsmpr'marytresid mortgagee eor the P a homebuyer who will use the Required improvements to, this Abatement cannot be homeowner's mortgagee which City Council hereby agrees not be without the prior consent of the City Council,Inds that the proposed aconsent ssignee s assigned unreasonably withheld provided that (i) the City Council reement and (ii) the financially capable of meeting thterms assume all terms and citions of onditions t ons of Owner under proposed purchaser agrees in write g of its ri hts under this Agreement. Owner may not othelwithout the City Counciise assigp� lease or convey l's prior consent shall this Agreement. Any attempted assignmentanted hereunder the Abatement constitute grounds for termination f receipt ofthis writtennotice from the City o Owner. following ten (10) calendar days o p to a homebuyer who will use the Upon assignment to Owner's first mortgagee, oce or the homeowners mortgagee, Required Improvements as its primary residen Owner shall have no further obligations or the dutrittenconsent of City Couunder this agreeme ncil, Owner upon assignment to any otheroobligation with his agreement. shall have no further duty g F THE EVENT OF A SALE ux a�a1�1�1�1L1, i THE FAILURE OF OWNER TO SEND THE CITY AND OF THE TIFICATION OF THE SALE OF THE REQUIRED IMPROVEMENTS ASSIGNMENT OF THIS AGREEMENT WITH THE NEW OWNEHER REQUIRED DAYS OF THE TRANSFER OF OWNER IMPROVEMENTS SHALL RESULT IN THE A D AIC SSIGNMENT MOT BE THIS AGREEMENT. THE NOTICE AND EXEC SENT TO THE CITY BY CERTIFIED MAIL OR BY HAND DELIVERY. 6. NOBS• All written notices called for or required by this Agreement b in writinge the following, or such other party or address as e party designate 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 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 bdstax of the Ciincrement bonds. This Agreement if holders of outstanding bon s subject to rights o 7,2, Conflicts of Interest. Neither the Premises nor any of the Required Improvements coverednci any member of the Agreement are owned or leased by n or anyany ber of the memberof the governCou ing body of any taxing City Planning or Zoning Commis Y units in the Zone. 7.3. Conflicts Between Documents. or City In the event of any conflict between the Citych zord nancesoning nor regulationsr shall ordinances or regulations, and this Agreement, suhibit control. In the event of any conflict between the body of this Agreement and Ex 6'D'% the body of this Agreement shall control. 7949 Future Application. s and/or Required le A portion or all of the Premise tae es as a result of existing elawlbor for complete or partial exemption from ad valorem future legislation. This Agreement shall not be rove entsed as dence that such exemptions do not apply to the Premises and/or Required imp 795, Civil Authorization. ized by the City Council through approval of Mayor This Agreement was author and Council Communication No.C-22333 on November 21, 2007, which, among other xecute this Agreement on behalf of the City. things, authorized the City Manager to e 7.6. Estoppel Certificate. Any party hereto may request an estoppel certificate from another party hereto so se. The ificate is requested in connection wi long as the certth the Owner, sbusinessbona fide shall include, but not certificate, which if requested will be addressed toand effect necessarily be limited to, statements that this Agreement oof Default and without default (or if an Event of Default exists, the nature of the Event en curative action taken and/or necessary to effect a b tementin effect, and such other Agreement, the levels and remaining term of the A matters reasonably requested by the party or parties to receive the certificates. 7,7, Owner Standingr. and necessary party in any litigation questioning Owner shall be deemed a proper or challenging the validity of this Agreement or an 1 of heunderlying a dl Ownerdshall be resolutions or City Council actions authorizingAgreement, entitled to intervene in any such litigation. 7,8, Venue and Jurisdiction. f the State of This Agreement shall be construed in accordanc th the laws o of the City. Venue for any Texas and applicable ordinances, rules, regulations or policies action under this Agreement shall lie in the State District Court of Tarrant County, Texas. This Agreement is performable in Tarrant County, Texas. 799, Recordation. dable form shall be recorded in the A certified copy of this Agreement in recor Deed Records of Tarrant County, Texas. 7.10. Severabili or unforceable, if any provision of this Agreement is held to be in oVld ionsgal shall note n any way the validity, legality and enforceability of the remaining p is be affected or impaired. 7.11. [-iParlins 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. cuments This Agreement, including any exhibits attached hereto and any and a reement e r a incorporated herein by referen containsns and successors ninterest as to the matters tg understanding , between the City and Owner, 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 T g Agreement may be executed in multiple approved by the City Council. This Ag c ounty arts, each of which shall be considered an original, but all of which shall constitute one instrument. EXECUTED this 'LV dayof /t/ , 2008, by the City of Fort Worth, Texas. Watery day of `T� , 2008, by iew Estates, L.P., Y EXECUTED this (� Pars Investment, Inc., General Partner. CITY OF FORT WORTH ATTEST: APPROVED AS TO FORM AND LEGALITY: By: Charlene Sanders Assistant City Attorney Mehrdad Moayedi President STATE OF TEXAS § COUNTY OF TARRANT § lu I BEFORE ME, the undersigned authority, on this day personally appeared Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation, instrument,is subscribed to the foregoing known to me to be the person and officer whose the a t l t the same was th of the said CITY OF FORT WORTH, and acknowledged to me tha TEXAS, a municipal corporation, that he was duly authorized to perform the same by appropriate Mayor and Council Communication of the City Council thepurposes and consideration and that he executed the same as the act of the said C y therein expressed and in the capacity therein stated. UNDER Notary Public in and for the State of Texas Notary's Printed Name MY HAND AND 2008. AL OF OFFICE this o-� day of SE tlOTAI y PIJBLIO S CAi'C OF TEXAS s My Comm. Exp. �� STATE OF TEXAS Is COUNTY OF TARRANT § appeared Mehrdad Moayedi of BEFORE ME, the undersigned authority, on this day personally appe d PartI General Partner, mitenership, Pars Investments, n Waterview Estates, L.P., a Texas Lic., known to me to be the person whose name is subscribed ° the andgocong ideratione therein acknowledged to me that he executed the same for the purposes therein stated and as the act and aner of Waterview Estates, L.P., a expressed, in the capacity Investment, Inc. General Pa Texas Limited Partnershp, Parsnvei GIVEN UNDER Notary Public in and for the State of Texas Notary's Printed Name MY HAND AND 2008. SEAL OF OFFICE this LAuf.A VJi\`r�aJyp f' E?cpfres JLjly i 4. 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 no Final Survey and Independent Appraisal CITY OF FORT WORTH D EMPOWERMENT ZONE (NEZ) TAX ABATEMENT POLICY AND BASIC NEIGHBORHOOD INCENTIVES 1, GENERAL P Cha ter 378 of the Texas Local Government de allows clioal'ty determines Ithattthe creation p owerment Zone (NEZ) when a P Neighborhood Emp of the zone would promote: (1) the creation of affordable housing, including manufactured housing, in the zone; (2) an increase in economic development the zone; public safety provided to (3) an increase in the quality of social services, education, or residents of the zone; or (4) the rehabilitation of affordable housing in the zone." Cit b adopting the following NEZ Tax Abatement Pool ��Yood Empowerment Zonesl and Basic Incentives? wil The y, y promote affordable housing and economic development in Neigh NEZ incentives will not be granted after the NEZ expires oae additionaltterms nand incentives ' as the NEZ. For each NEZ, the City Council may pp CodeCityor by Council resolution. permitted by Chapter 378 of the awarded beforeas LocalGheernmen expiratin of NEZ shall carry its full term However, any tax abatement 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 Nothing in the policy shall be construed as an obligation by the City of Fort Worth real property. to approve any tax abatement application. 11. DEFINITIONS "Abatement" means the full or partial exemptis and n amount of up o 100% of the ncrease in eligible properties for a period of up to 10 year raisal district) appraised value (as reflected on then certified a oll out on f thappropriate the taxcabatemept agreementr resulting from improvements beg Eligible properties must be located in the NEZ. ert excluding land, as determined by the Tarrant County "Base Value„ is the value of the prop y, Appraisal District, during the year rehabilitation occurs. Building Stand ards Commission" is the commission created under Sec. 7-771 Article IV. Minimum Building Standards Code of the Fort Worth City Code. Investment" includes only real property improvements such as new facilities and If Capital Investment structures, site improvements, facility expansioncosts and/or an nexistin�g improvements, or persoions lnal property does NOT include land ucgmen °and/or supplies and inventory). (such as machinery, q p Adopted 5-15-2007 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 prof ct that is (or rmeetssthe construct or rehabilitate commercial/industrial facilities on property 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. rn treal "Eligible Rehabilitation" includes. only physical improvements o pancesyequ plmenit, Rehabilitation does NOT include personal property (such as furniture, app and/or supplies). 'Gross Floor Area" is measured by taking the outside dimensions of the building at each floor level, except that portion of the basement used only for utilities or storage, and any areas within the building used for off-street parking. "Minimum Building Standards Code" is Article IV of the Fort Worth City Code adopted pursuant to Texas Local Government Code, Chapters 54 and 214. "Minority Business Enterprise (MBE)" and "Women Business Enterprise (WBE)" is a minority or ived certification as either a certified MBE or certified woman owned business that has rece WBE by either the North Texas Regional Certification Agency (NTRCA) or the Texas Department of Transportation (TxDot), Highway Division. "Mixed -Use Development Project" is a development project which proposes percent for onstrmoreoctth r rehabilitate mixed -use facilities in which residential uses constitute 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 as described by the Cityof rtFort aWorth t is (or Zoning meets the requirements to be) zoned mixed -use 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. Development "Project" means a "Residential Project'; "Community Facy "Multi -family Development Project." Development Project'; "Commercial/Industrial Project'; "Mixed -Use Development "Reinvestment Zone" is an area designated as such by the City of Fort Worth in accordance d Tx Abatement with the Property Redevelopment anaAct codified in Chapter 312 of the Texas pursuant to the Texas Enterprise Zone Tax Code, or an area designated as an enterprise zone Act, codified in Chapter 2303 of the Texas Government Code. Adopted 5-15-2007 2 an imiCIPAL PROPERTY TAX ABATEMENTS 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 roof of the final NEZ dasfiiddavit of heirship,egnatione Norr a p pner robated provide will, and ownership warranty deed,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. Property is in conformance with the City of Fort Worth Zoning Ordinance. B. MULTI -FAMILY DEVELOPMENT PROJECTS LOCATED IN A NEZ 1. 100%Abatement for 5 years. less this secfiion shall apply. Adopted 5-15-2007 3 for up o 5 are suWJe Abatements for multi -family development projectst Housing sDepartmenttfoor City Council approval. The applicant may apply with the such abatements The applicant must apply for the tax abatement and be approved by City Council before construction or rehabilitation is started. In order to be eligible for a property tax abatement upon completion, a newly constructed or rehabilitated multi -family development project in a NEZ must satisfy the following: At least twenty percent (20%) of the total units constructed or rehabilitated shall be affordable (as defined by the U. S. Department of Housing and Urban Development) to persons with incomes at or below eighty percent (80%) of area median income based on family size and such units shall be set aside for persons at or below 80% of the median income it s defined efin Id by the may waive S. Department of Housing and Urban DevelopmentsY or reduce the 20% affordability requirement on a case -by -case basis; and (a) For a multi -family development project constructed after NEZ designation, the project must provide at least five (5) residential living units OR have a minimum Capital Investment of $200,000; or (b) For a rehabilitation project, the property must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property. Such Eligible Rehabilitation costs must come from the rehabilitation of at least five (5) residential living units or a minimum Capital Investment of $200,000. 1 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 Agreement Multi -family projects shall be eligible for 100% abatement of City ad valorem taxes for years one through five of the Tax Abatement Agreement upon the satisfaction of the following: At least twenty percent (20%) of the total units constructed of Housing 'litated and Urban be affordable (as defined by the U. S. Department Development) to persons with incomes at or below eighty percent (80%) of area median income based on family size and such units shall be set aside for Adopted 5-15-2007 4 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 stment of least five (5) r sidential living units OR have a minimum Capital Inve must be rehabilitated after NEZ b. For a rehabilitation project, the property roerty shall be at least Such designation. Eligible Rehabilitation costs Elp ibpe 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 minimum Capital Investment of $200,000. Years 6 throu h 10 of the i ax hud�C��, ��• • •-• - Multi -family projects shall be el' eibl of°the 1Tax OAbatementl Agreement upon the taxes for years six through satisfaction of the following:i nits a. At least twenty percent (20%) otheeU t S.uDepartment of rehabilitated Housing Urbanl be affordable (as defined by Development) to persons with incomes at or below eighty percent (80%) of area median income based on family size and such units shall be set aside for persons at or below 80% of the median income as defined by the U.S. Department of Housing and Urban Development. City Council may waive or reduce the 20% affordability requirement on a case -by -case basis; and 1. For amulti-family developmentproject (5)onstructed resident al IivingNEZ untss'OR thaveha project must provide at east minimum Capital Investment of $200,000; or ust be rehabilitated after NEZ 2. For a rehabilitation project, the property property shall a at least designation. Eligible Rehabilitation costs on the Such Eligible e Rehabilitation costs 30% of the Base Value of the property. g must come from the rehabilitation of at least five (5) residential living units or a minimum Capital Investment of $200,000*appropriate, b. Any other terms as City Council of the City of Fort Worth deems appro p 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 minority and �osts fomen r con b siness uction contracts; enterprises for an agreed upon percentage of the total 3. property inspection; 4. commit to hire an agreed upon percentage of Fort Worth residents 5w commit to hire an agreed upon percentage of Central City residents 6. landscaping; 7. tenant selection plans; and 84 management plans. C, COIViIViERC1AL, INDUSTRIAL AND COMIViUNITY FACILITIES DEVELOPMENT PROJECTS LOCATED IN A NEZ Adopted 5-15-2007 5 1. less this section shall apply. Abatements for Commercial, Industrial and Community Facilities Development Projects for up to 5 years are subject to City Council approval. The applicant may apply with the Housing Department for such abatement. The applicant must apply for the tax abatement and be approved by City Council before construction or rehabilitation is started. or In order to be eligible for a property tax abatement, a newly constructed rehabilitated commercial/industrial and community facilities development project in a NEZ must satisfy the following: 0 2. A rial or a community facilities development project commercial, indust constructed after NEZ designation must have a minimum Capital Investment of $75,000; or For a rehabilitation project, on the It prst be operty erty shall Meetated after NEZ at east 30% of the BaseesignationValuebof Rehabilitation costs p p the property, or $75,000, whichever is greater. ii' 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 Tax Abatement Hgreernei iL Commercial, Industrial and Community Facilities Development projects shall be eligible for 100% abatement of City ad valorem taxes for the his five years of the Tax Abatement Agreement upon the satisfaction of the following: ities Investment of a. A commercial, industrial nation mus have a fminlimum Capitap of constructed after NE esg $75,000; or b. For a rehabilitation project, the property ert st eshall blest at east 30° o od after NEZf the Base esignationVal uebof Rehabilitation costs p p Y the property, or $75,000, whichever is greater. Adopted 5-15-2007 . 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 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: 1s 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; 3v commit to hire an agreed upon percentage of Fort Worth residents; 4. commit to hire an agreed upon percentage of Central City residents; and 5. landscaping. D. MIXED -USE DEVELOPMENT PROJECTS LOCATED IN A NEZ 1. 1 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 property tax abatement, upon In order to be eligibl mixed use development project completion, in a NEZ must satisfy the: constructed or rehabilitated following: Residential uses in the project constitute 20 percent or more of the total Gross Floor Area of the project; and b. Office, eating and Adopted 5-15-2007 7 (2) For a rehabilitation project; it must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property, or $200,000, whichever is greater. 2. Vears this section stlalt app�V. to Abatements agreements for approvals Mixedse ve via, a, ant nmay applyfwithpthe 1Hous Housing are subject to City Council Department for such abatement. The applicant must apply for the tax abatement before construction or rehabilitation is started and the application for the tax abatement must be approved by City Council. Years 1 throu h 5 of the I ax P,gaterne� �� r ��� Mixed Use Development projectsears of the Tax Abatement 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 entertainment, more of the total Gross Floor Ard/or retail sales and ea 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 minirnurr► Capital Investment of $200,000; or for a rehabilitation project, it must be rehabilitated after 0% of the Base Valugible e of Rehabilitation e property, or $200,000, property shall be at least 30 whichever is greater. Years 6 throu h 10 of the i ax Hpalei � �C� ��,�. Mixed Use Development projectu h telnbof the/ Tax Abatem0e/nt Agreement upon 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 project; and b. Office, eating and entertainment, and/or retail sales and service uses in the project constitute 10 percent or more of the total Gross Floor Area of the project; c. Anew mixed -use development project eor forer NEZ a rehabilitation designation it have a minimum Capital Investment of $200,000; must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the Adopted 5-15-2007 8 E. property shall be at least 30% of the Base Value of the property, or $200,000, p Y whichever is greater; and d. Any other terms as City Council of the City of Fort Worth deems appropriate, including, but not limited to: reed upon percentage of the 1. utilization of Fort Worth companies for an agreed total costs for construction contracts; 26 utilization of certified minority and wom casts ford construction contracts; business enterprises for an agreed upon percentage of the total 3, property inspection; ercentage of Fort Worth residents 49 commit to hire an agreed upon p 5, commit to hire an agreed upon percentage of Central City residents 6. landscaping; 76 tenant selection plans; and 80 management plans. ABATEMENT GUIDELINES 1. If a NEZ is located in a Tax Increment Financing District, City Council will determine is if the tax abatementtmeet all eligibility retion I will be offered quireon a case -by -case basments specified to eligible Projects. Eligible Projects must in Section III. Project is located in the Woodhaven Neighborhood Empowerment Zone, in order 2. If a J I for a tax abatement under this Policy, the to be considered "eligible" to apply oration and o he for the Project Woodhaven supp f Woodhaven Community Development Corp Neighborhood Association must have submitted a letter o the City of Fort Worth 3. In order to be eligible to apply for a tax abatement, the property owner/developer must: property taxes for any property owned by the a. Not be delinquent in paying p p y enter into a tax owner/developer, except that an owner/developer may t with the city of Fort Worth foria; a specific Pr abatement agreoject if: emen 1. the Project meets NEZ taxabatement responsible for the tax delinquency for the Property; 2, the applicant is not and to pay off the taxes under the 3. the applicant enters into an agreement guidelines permitted under state law; and 4, the tax abatement shall provide that the agreement shall take effect after the delinquent taxes are paid in full b. Not have any City of Fort Worth liens filed against any property owned by the applicant property owner/developere "Liens" inclur l en s and p vingut are tl ens. to, wee liens, demolition liens, board-up/open str 4. Projects to be constructed on property to be purchased under a contract for deed are not eligible for tax abatements. Adopted 5-15-2007 9 5. Once a NEZ property owner of a residential property including multi -family) in the E.2. and aplies for an NEZ satisfies the criteria set forth in Se'nto a ttionslax abatement d ag eement with the City abatement, a property owner may enterly terminate of Fort Worth. The tax abatement agreement gag ee ment s11 inuviolation lof the City off Fort property subject to the tax abatement Worth's Minimum Building Standards Code and the owner is convicted of such violation. ll. can ed under the criteria set forth in maximum termof as Section (specified my be 6. A tax abatement grantthe granted once for a property in a NEZ for the city agreement. If a property on which tax is being abated is soIshed new owner will submits tan tax abatement agreement for the remaining erm once application. 7. A property owner/developer of a multifamily fVeroject in the NEZ who'des desires Ia community facilities and mixed use development p tax abatement under Sections III.B, C or D must. a. Satisfy the criteria set forth in Sections 111.8, C or D, as applicable, and Sections Ill.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 Fort Worth. In addition to the other agreement, automat automatically teaminateeif the. ment agreement shall provide that the agreement shall owner receives one conviction ofda'violation pofope�City bject to theof Fort abatement nimum Building Standards Code regarding agreement during the term which ch tax he tax abatement s being abated is sold tithe new owner may nd d. If a property in the NEZ enter into a tax abatement agreement on the property for the remaining term. ty Council 6. If the terms of the tax abatement agree agreement. ent In the eventt met, the cancellation, the as the right to cancel or amend the abatement recapture of abated taxes shall be limited to the year(s) in which the default occurred or continued. (1) review 9. The terms of the agreement shall includtementshe tyn each yea duri of Fort Worth's gg tthe I fe of the and verify the applicants financial spa agreement prior to granting a tax abatement in any given year, (2) conduct an on site inspection of the project in each year during the life of the abatement to verify 3 terminate the compliance with the term the bontaina sexually nagreement, oriented business (4 agreement if the Project containsor terminate the agreement, as determined in City's sole discretion, if the Project contains or will contain a liquor store or package store. l no 10. Upon completion of construction of the facilities, assure complianlce with theless hterms of the an annually evaluate each project receiving abatement -compliance will be reported to the City Council. agreement. Any incidents of non On or before February 1st of every year during the life of the agreement, any indiv idual or entity receiving a tax abatement from the City of Fort Worth shall Adopted 5-15-2007 10 provide information and documentation whic eemeentl and shallo certify that the compliance with the terms of the respective ag owner is in compliance with each applicable term of the agreement. Failure to report this information and to provide the required certification by the above deadline shall result in cancellation of agreement and any taxes abated in the prior year being due and payable. r may 11. If a property in the NEZ on which tax is being abated is sold, the new owne enter into a tax abatement agreement on the property for the remaining term. Any sale, assignment or lease of the property which is not permitted in the tax abatement agreement results in cancellation of the agreement and recapture of any taxes abated after the date on which an unspecified assignment occurred. F. APPLICATION FEE 1. An application fee of $25.00 for all basic incentives, excluding tax abatements. 2. The application fee for residential tax abatements governed under Section III.A is $loom 3. The application fee for multifamily, commercial, industrial, community facilities and mixed -use development projects governed under Sections III.B., C. and D., is one- half of one percent (0.5%) of the proposed Project's Capital Investment, with a $200 minimum not to exceed $2,0004 The Application Fee shall not be credited or refunded to any party for any reason. IV. FEE WAIVERS A. ELIGIBLE RECIPIENTS/PROPERTIES 1. City Council shall determine on a case -by -case basis whether a Project that will contain or contains a liquor store or package store is eligible to apply for a fee waiver. 2. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order hWdhaven to be considered eligible' to apply for a fee waiver under this Policy, te oo " Community Development Corporation and the Woodhaven Neighborhood Association must have submitted a letter of support for the Project to the City of Fort Worth —however, once the NEZ Plan is submitted for the Woodhaven NEZ, this will no longer be required. 3. Projects to be constructed on property to be purchased under a contract for deed are not eligible for 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; Adopted 5-15-2007 11 bo must not be delinquent in paying property taxes for any property owned by the owner/developer or applicant; c. must not have any City liens i►ua against any limited to, weed tienshedemapplicant li on property owner/developer, including liens, board-up/open structure liens and paving liens; and d. of a Project that will contain or contains a liquor store, package store or a sexually oriented business has received City Council's determination that the Project is eligible to apply for fee waivers. _ .. .. A ,.,.,;,,or of the, fPPc; shall not be deemed to be B. DEVELOPMENT FEES Once the Application for NEZ Incentives has been approved and certified by the City, the performed by the City of Fort Worth for Projects in the NEZ following fees for services are waived for new construction projects or rehabilitation projects that expend at least 30% of the Base Value of the property on Eligible Rehabilitation costs: 1. All building permit related fees (including Plans Review and Inspections) 2. ept plan, preliminary plat, final plat, short form Plat application fee (including conc replat) 3. Board of Adjustment application fee 4. Demolition fee 5. Structure moving fee 6. Community Facilities Agreement (CFA) application fee 7. Zoning application fee 8. Street and utility easement vacation application fee 9. Ordinance Inspection Fees 10. Consent/Encroachment Agreement Application Fees Other development related fees not specified above will be considered for approval by City Council on a case -by -case basis. C. IMPACT FEES 1. Single family and multi -family residential development projects in the NEZ. Automatic 100% waiver of water and wastewater impact fees will be applied. 2. Commercial, industrial, mixed -use, or community facility development projects in the NEZ. a. Automatic 100% waiver of water and wastewater impact fees up to $55,000 or to two 6-inch meters for each commercial, industrial, mixed -use or equivalent community facility development project. b. If the project requests an impact fee waiver exceeding $555000 or requesting a waiver for larger Al more than two 6-inch meter, then City Council approval is Adopted 5-15-2007 12 required. Applicant may request the additional amount of impact fee waiver through the Housing Department. V. RELEASE OF CITY LIENS A, ELIGIBLE RECIPIENTSIPROPERTIES 1, City Council shall determine on a case -by -case basis whether aPr ill contain or contains a liquor store or package store is eligibleapply for a fee waiver. the Woodhaven Neighborhood Empowerment Zone, in order 2. If a Project is located in to be considered "eligible" to apply for release of city liens under this Policy, the Woodhaven Community Development Corporation and the Woodhaven Neighborhood Association must have suitted a NEZ Plan srof support subm submitted foor the Pror the W o1 ect to ce thedhaven the City of Fort Worth —however, on 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 for a release of city 4. In order for a prop Y liens contained in Section V.B., C., D., and E. for a' Project, the property owner/developer: a. must submit an application to the City; taxes for any property owned by the b. must not be delinquent in paying property owner/developer; b. must not have been subject to s deuilding molished shedtandards within theCder of last five (5) years; Demolition where the property wa c. must not have any City of Fort Worth liens filed against any other property owned "Liens" i by the applicant property ownerldeveloper@ includes, but is not limited to, weed liens, demolition liens, board-up/open structure lieacka ns ne store ord paving 'a sexually d. of a Project that contains or will contain a liquor store, p 9 oriented business has received City Council's determination the Project is eligible to apply for release of City liens. city liens, the 5. In order for a Rehabilitation Project to qualify for ioProrelease fperiy of at lease owner/developer must spend Eligible Rehabilitation costs the 30% of the Base Value of the Property. 6. Liens shall be released once the Project Improvements have been made to the property. 7. Any liens filed after the initial certification of the property shall not be released. g. WEED LIENS The following are eligible to apply for release of weed liens: 1. Single unit owners performing rehabilitation on their properties. 13 Adopted 54 5-2007 C. D. E. VI U 2. Builders or developers constructing new homes on vacant lots. 3. Owners performing rehabilitation on multi -family, commercial, industrial, mixed -use, or community facility properties. 4. Developers constructing new multi -family, commercial, industrial, mixed -use or community facility development projects. DEMOLITION LIENS Builders or developers developing or rehabilitating a property for a Project are eligible to apply for release of demolition liens for up to $30,000. Releases of demolition liens in excess of $30,000 are subject to City Council approval. BOARD-UP/OPEN STRUCTURE LIENS The following are eligible to apply for release of board-up/open structure liens: . 1. Single unit owners performing rehabilitation on their properties. 2. Builders or developers constructing new single family homes on vacant lots. 3. Owners performing rehabilitation on multi -family, commercial, industrial, mixed -use, or community facility properties. 4. Developers constructing multi -family, commercial, industrial, mixed -use, or community facility projects. PAVING LIENS The following are eligible to apply for release of paving liens: 1. Single unit owners performing rehabilitation on their properties. 2. Builders or developers constructing new homes on vacant lots. 3. Owners performing rehabilitation on multi -family, commercial, industrial, mixed -use, or community facility properties. 4. Developers constructing multi -family, commercial, industrial, mixed -use, or community facility projects. PROCEDURAL STEPS APPLICATION SUBMISSION 1. Z incentives under Sections III. IV., and V. must comp The applicant for NElete and submit a City of Fort Worth Application for NEZ Incentives" and pay the appropriate application fee to the Housing Department, as applicable. 2. incentiveunder Sections III.C.2 and D.2 must also complete and The applicant for submit a City of Fort Worth Application for Tax Abatement" and pay the appropriate application fee to the Economic Development Office. The application fee, review, evaluation and approval will be governed by City of Fort Worth Tax Abatement Policy. Statement for Qualifying Development Projects. CERTIFICATIONS FOR APPLICATIONS UNDER SECTIONS I11. IV, AND V 1. The Housing Department will review the application for accuracy and Adopted 5-15-2007 14 completeness. Once the Housing Department determines that the application is complete, the Housing Department will certify the property owner/developer's eligibility to receive tax abatements and/or basic incentives based on the criteria set forth in Section III., IV., and V. of this policy, as applicable. Once an applicant's eligibility is certified, the Housing Department will inform appropriate departments administering the incentives. An orientation meeting with City departments and the applicant may be scheduled. The departments include: a. Housing Department: property tax abatement for residential properties and multi- family development projects, release of City liens. b. Economic Development Office: property tax abatement for commercial, industrial, community facilities or mixed -use development projects. c. Development Department: development fee waivers. d. Water Department: impact fee waivers. e. Other appropriate departments, if applicable. 2. Once Development Department, Water Department, Economic Development Office, and/or other appropriate department receive a certified application from the Housing Department, each department/office shall fill out a "Verification of NEZ Incentives for Certified NEZ Incentives Application" and return it to the Housing Department for record keeping and tracking. C. APPLICATION REVIEW AND EVALUATION FOR APPLICATIONS 1. Property Tax Abatement for Residential Properties and Multi -family Development Projects a. For a completed and certified application for no more than five years of tax abatement, with Council approval, the City Manager shall execute a tax abatement agreement with the applicant. b. For a completed and certified multi -family development project application for more than five years of tax abatement: (1) The Housing Department will evaluate a completed and certified application based on: (a) The project's increase in the value of the tax base. (b) Costs to the City (such as infrastructure participation, etc.). (c) Percent of construction contracts committed to: (i) Fort Worth based firms, and (ii) Minority and Women Owned Business Enterprises (M/WBEs). (d) Other items which the City and the applicant may negotiate. (2) Consideration by Council Committee. Based upon the outcome of the evaluation, Housing Department may present the application to the City Council's Economic Development Committee. Should the Housing Department present the application to the Economic Development Committee, the Committee will consider the application at an open meeting. The Committee may: (a) Approve the application. Staff will then incorporate the application into a tax abatement agreement which will be sent to the City Council with the Committee's recommendation to approve the agreement; or Adopted 5-15-2007 15 (b) Request modifications to the application. Housing Department staff will discuss the suggested modifications with the applicant and then, if the requested modifications are made, resubmit the modified application to the Committee for consideration; or (c) Deny the application. The applicant may appeal the Committee's finding by requesting the City Council to: (a) disregard the Committee's finding and (b) instruct city staff to incorporate the application into a tax abatement agreement for future consideration by the City Council. (3) Consideration by the City Council The City Council retains sole authority to approve or deny any tax abatement agreement and is under no obligation to approve any tax abatement application or tax abatement agreement. The City of Fort Worth is under no. obligation to provide tax abatement in any amount or value to any applicant. c. Effective Date for Approved Agreements All tax abatements approved by the City Council will become effective on January 1 of the year following the year in which a Certificate of Occupancy (CO) is issued for the qualifying development project (unless otherwise specified in the tax abatement agreement). Unless otherwise specified in the agreement, taxes levied during the construction of the project shall be due and payable. 2. ProperEy Tax Abatement for Commercial, Industrial, Community Facilities, and Mixed -Use Development Projects a. For a completed and certified application for no more than five years of tax abatement, with Council approval, the City Manager shall execute a tax abatement agreement with the applicant. b. For a completed and certified application for more than five years of tax abatement: (1) The Economic Development Office will evaluate a completed and certified application based on: (a) The project's increase in the value of the tax base. (b) Costs to the City (such as infrastructure participation, etc.). (c) Percent of construction contracts committed to: (i) Fort Worth based firms, and (ii) Minority and Women owned Business Enterprises (M/WBEs). (d) Other items which the City and the applicant may negotiate. (2) Consideration by Council Committee Based upon the outcome of the evaluation, the Economic Development Office may present the application to the City COU"V I %s Economic Development Committee. Should the Economic Development Office present the application to the Economic Development Committee, the Committee will consider the application at an open meeting. The Committee may: Adopted 5-15-2007 16 (a) Approve the application. Staff will then incorporate the application into a tax abatement agreement which will be sent to the City Council with the Committee's recommendation to approve the agreement; or (b) Request modifications to the application. Economic Development Office staff will discuss the suggested modifications with the applicant and then, if the requested modifications are made, resubmit the modified application to the Committee for consideration; or (c) Deny the application. The applicant may appeal the Committee's finding by requesting the City Council to: (a) disregard the Committee's finding and (b) instruct city staff to incorporate the application into a tax abatement agreement for future consideration by the City Council. (3) Consideration by the City Council The City Council retains sole authority to approve or deny any tax abatement agreement and is under no obligation to approve any tax abatement application or tax abatement agreement. The City of Fort Worth is under no obligation to provide tax abatement in any amount or value to any applicant. c. Effective Date for Approved Agreements All tax abatements approved by the City Council will become effective on January 1 of the year following the year in which a Certificate of Occupancy (CO) is issued for the qualifying development project (unless otherwise specified in the tax abatement agreement). Unless otherwise specified in the agreement, taxes levied during the construction of the project shall be due and payable. 3. Development Fee Waivers a. For certified applications of development fee waivers that do not require Council approval, the Development Department will review the certified applicant's application and grant appropriate incentives. b. For certified applications of development fee waivers that require Council approval, City staff will review the certified applicant's application and make appropriate recommendations to the City Council. 4. Impact Fee Waiver a. For certified applications of impact 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 impact fee waivers that require Council approval, the Water Department will review the certified applicant's application and make appropriate recommendations to the City Council. 5. Release of City Liens For certified applications of _release of City liens, the Housing Department will release - the appropriate liens. VII. REFUND POLICY Adopted 545-2007 17 In order for an owner/developer of a Project in a NEZ to receive a refund of development.. fees or impact fees, the conditions set forth in the Refund of Development and Impact . Fee Policy, attached as Attachment "A", must be satisfied. III. 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 applications 7. Support for Low Income Housing Tax Credit (LIHTC) 8. Land use incentives and zoning/building code exemptions, e.g., mixed -use, density bonus, parking exemption 9. Tax Increment Financing (TIF) 10. Public Improvement District (PID) 11. Tax-exempt bond financing 12. New Model Blocks 13. Loan guarantees 14. Equity investments 15. Other incentives that will effectuate the intent and purposes of NEZ. IX. Public Notification a. Subject to subsection (b), in order for an owner/developer to apply to receive any incentives provided for under the NEZ Tax Abatement Policy and Basic Incentives, an owner/developer must meet with the following persons and organizations to discuss the Project: 1. the Council Member for the District the Project is located; and 2. the neighborhood associations or community based organizations registered with the city in the NEZ the Project is located. b. Subsection (a) shall be satisfied upon: 1. the owner/developer meeting with the City Council Member for the District the Project is located and the neighborhood associations or community based organizations registered with the city in the NEZ the Project is located; or 2. meeting with the City Council Member for the District the Project is located and upon the owner/developer providing proof that the owner/developer attempted to meet with the neighborhood associations and the community based organizations registered with the city in the NEZ the Project is located and the associations or organizations failed to arrange a meeting with the. owner/developer within two weeks of initial contact. 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 Projects 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 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 development fees that can be waived through the NEZ include: 1. All building permit fees (including Plans Review and Inspections) 2. Plat application fee (including concept plan, preliminary plat, final plat, short form replat) 3. Board of Adjustment application fee 4. Demolition fee 5. Structure moving fee 6. Community Facilities Agreement (CFA) application fee 7. Zoning application fee 8. Street and utility easement vacation application fee. To take advantage of these waivers, applicants need to obtain a certification letter from the Housing Department. Conditions for Refunds The City will consider refunds only when circumstances beyond the developers control. prevent them from obtaining the qualification letter from the Housing Department. A property owner and/or developer may qualify for a refund if the proposed development project meets all criteria to receive a fee waiver under the NEZ Tax Abatement and Basic Incentives Policy and: a. The owner and/or developer was not made aware of the NEZ incentives at the time the fees were paid; or b. The owner and/or developer was mistakenly told that his/her property was not in a designated NEZ; or Adopted 5-15-2007 20 cty . The owner and/or developer has put funds in an escrow account with a Ci Department while awaiting a decision from the City Council about his/her project; or J. 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 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 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. Exhibit B Property Description 5749 Maui Drive; Lot 9; Block 5; 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.