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HomeMy WebLinkAboutContract 36965RACo CONTT N60,� . 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 nsseler, 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. � 3) P t°?L Loo y tl 03-283 08 A03052 IN dlo and criteria governing ax D, The NEZ Incentives contain appropriate gtheeCrtysas contemplated by Chapter abatement agreements to beentered into 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 Empowerment Reinvestment Zone No. 16," City of Fort Worth, Texas (the "Zone"). F. Owner owns certain real property located entirely within the Lake Arlington NEZ and that is more particularly described in Exhibit `B", attached hereto and hereby made a part of this Agreement for all purposes (the "Premises"). G. Owner or its assigns plan to construct the Required Improvements, as defined in Section 1.1 of this Agreement, on the Premises to be used for as a single-family residence that will be owner occupied. (the "Project"). H, On August 13, 2004, Owner submitted an application for NEZ incentives and an application for tax abatement to the City concerning the contemplated use of the Premises (the "Application"), attached hereto as Exhibit "C" and hereby made a part of this Agreement for all purposes. I. The City Council finds that the contemplated use of the Premises, the Required Improvements, as defined in Section 1.1, and the terms of this Agreement are consistent with encouraging deTe development in fiance withof the ethe NEZ accordance cent ves, the purposes for its creation and a p Resolution and other applicable laws, ordinances, rules and regulations. il finds that the terms of this Agreement, and the Premises and J. The City Counc 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 ibed by the Code copy of this Agreement, has been furnished in the manner prescr 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 agree as foil Won of the terms and conditions set forth herein, do hereby contract, covenant and g 1, OWNER'S COVENANTS. 1.1. Real Property Improvements. Owner shall construct, or cause to be constructed, on each lot within the Premises for which tax abatements are requested, certain improvements consisting leat of 1200 square family residence (collectively, the Required Improvements ), feet of living space in size with 3 bedrooms and one and one-half baths, with 70% ned an mortared brick and having an appraised value of $80,000.00, as dete Owne bshall independent appraiser (collectively, the "Required Improvements"). provide a survey of the completed home showing Required Improvements before the home is sold and a copy of the independent appraisal after the sale. The parties agree that the final survey and independent appraisal shall be a part of this Agreement and shall be labeled Exhibit E. Minor variations, and more substantial variations if approved in writing by both of the parties to this Agreement, in the Required Improvements from the description provided in the Application for Tax Abatement shall not constitute an Event of Default, as defined in Section 4.1, provided that the conditions in the first sentence of this Section l .l are met and the Required Improvements are used for the purposes and in the manner described in Exhibit "D". 1.2. Completion Date of Required improveu�C..��• Owner covenants to substantially complete construction of all of the Required Improvements within one year from the issuance and receipt of the building permit, unless delayed because of force majeure, in which case the two years shall be extended by the number of days comprising the specific nt force ajeuree Owner's �easoa tiles of this control, Agreement, force majeure shall mean an e including, without limitation, delays caused by adverse weather, delays in receipt of any required permits or approvals from any governmental authority, or acts of God, fires, riots and material or labor restrictions and shortages as strikes, national disasters, wars, determined by the City of Fort Worth in its sole discretion, which shall not be o purely unreasonably withheld, but shall not include ri ndela s on indthe obtaining of elays caused duetadequate financial matters, such as, without limitati Y financing. 1.3. Use of Premises. Owner covenants that the Required Improvements shall be constructed and the 9 idPused as the rimary resi remises shall be sold so that it is continuotinnof the usly of the Projecp set forth in theeExhibrt Home Buyer in accordance with the descrip In addition, Owner covenants that throughout the Term, the Required Iset forth in this mprovements shall be operated and maintained thethepurposespurposes of encouraging Agreement and in a manner that is consistent general development or redevelopment of the Zone. 2, AIiA l r;lvlr,ly t [�►l�iv �� • � �, Subject to and in accordance with this Agreement, the City hereby grants to Owner a real property tax abatement on the Premises, the Required Improvements, as specifically provided in. this Section 2 ("Abatement"). "Abatement" of real property taxes only includes City of Fort Worth -imposed taxes and not taxes from other taxing e 201. 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 iwas entered into: n which this Agreement One Hundred percent (100%) of the increase in value from the construction of the Required Improvements. If the square footage requirement and tl e oft appraised is va Agreement, hallnot Improvements are less than as provided m Section 1 be eligible to receive any Abatement under this Agreement. 2.2. Increase in Value. The abatement shall apply only torovements and shall not apply to taxes r onthe due to construction of the Required Imp land. 2,3, Term of Abatement. The term of the Abatement ("Term") shall begin on January 1 of the year following the calendar year in which a Required Improvement is sold to a Home Buyer to be used as its primary residence ("Beginning Date") and, unless sooner terminated as herein provided, shall end on December 31 immediately preceding the fifth (5`h) anniversary of the Beginning Date. Upon the sale to a Home Buyer, in City shall certify that the Required Improvements However, the Compliance pAudt Auditing satisfaction of the terms of the agreement. 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 raisals or Assessiiicl.�a• Owner shall have the right to protest thereon test any or all appraisals or assessments of the Premises and/or improvements 2.5. Abatement Application Fee. The City acknowledges receipt from O`'�'n not bebcredit d or refunded fee of $25.00 per single family house. The application fee shall to any party for any reason. 3. 3.1. Inspection of Premises. Between the execution date of this Agreement and the last day of the Term, at any time during construction of the Required Improvements and following reasonable notice to Owner, the City shall have and Owner shall provide access to the Premises in order for mprovements to ensure the City to inspect the Premises dconditionsluate the Required of this Agreements Owner hall cooperate compliance with the terms a fully with the City during any such inspection and/or evaluation. 3.2. Certification. Owner shall certify annually to the City that it is in compliance with each applicable term of this agreement. The City shall have the right to audit at the City's expense the Required Improvement with respects to the specifications listed in Exhibit D. Owner must provide documentation that Owner , s using the Required Improvements as its primary residence (collectively, the "Records) at any time during the Compliance Auditing Term in order to determine compliance with this Agreement. Owner shall make all applicable ity following Records available to the City on the Premisesat ano se cooperate fullyther location in the Cwith the C ty reasonable advance notice by the City and shall during any audit. 3.3. Provision of Information. On or before February 1 following the end of every year during the Compliance Auditing Term and if requested by the City, Owner'swner shall compliance with each oft e documentation for the previous year that addresses terms and conditions of this Agreement for that calendar year. ithin the control of Owner required by this Failure to provide all information w Section 3.3 shall constitute an Event of Default, as defined in Section 4.1. 3.4. Determination of Compliance. On or before August 1 of each yearhde actualg annualp percentage) of Abatement City shall make a decision and rule on t available to Owner for the following year of the Term and shall notify Owner of such decision and ruling. The actual percentage of the Abatement granted for a given year of the Term is therefore based upon Owner s compliance with the terms and conditions of this Agreement during the previous year of the Compliance Auditing Term. 4. EVENTS OF DEFAULT. 4.1. Defined. if Unless otherwise specified herein, Owner shall be in default of thictionr 1 rinenii) ad Owner fails to construct the Required Improvements he emisessor thedefineProjectd in e or its ad valorem valorem real property taxes with respect taxes with respect to the tangible personal property located on the Premises, become perly follow the legal procedures for protest delinquent and Owner does not timely and pro and/or contest of any such ad valorem real property or tangible personal property taxes or (iii) HOME BUYER DOES NOT USE THE BEGINSP (iv) BUYER DOES ISES AS PRIMARY RESIDENCE ONCE THE ABATEMENT NOT COMPLY WITH CHAPTER 7 ANwORTE D(collectively, B OTHEeachan "Event DEOF ORDINANCE OF THE CITY OF FOR,I of Default"). 4.2. Notice to Cure. Subject to Section 5, if the City determines that an Event of Default has occurred, the City shall provide a written notice to Owner hadtadescribes t�hednature of receipt f the of this vent of Default. Owner shall have ninety (90) calendarY ent of ,t, if Owner reasonably written notice to fully cure or have cured the vcure t eEvent of Default, Owner shall believes that Owner will require additional timeto promptly notify the City in writing, in which case (i) after advising the City Council in an open meeting of Owner's efforts and intent to cure, Owner shall have one hundred eighty (180) calendar days from the original date of receipt of the written notice, or (ii) if Owner reasonably believes that Owner will require more than one hundred eighty (180) days to cure the Event of Default, after advising the City foanc,las may be offered by tin an open meeting of Ohe City efforts and intent to cure, such additional t Y Council in its sole discretion. 4,3, Termination for Event of Default and Pa ment of Li uiaatea 1,ai[,a Ga. If an Event of Default which is definedin Section the Citnot been y shall fight to twith he time frame specifically allowed under Section 4.2tyshall have the terminate this Agreement immediately. Owneconom�c developmenwledges and grand that redevelopment Event of Default will (i) harm the City s e nd in the vicinity of the Premises; (ii) require unplanned and efforts on the Premises aby the City; expensive additional administrative oversight otherwise harm the City, and Owner agrees thatdhe amount nvolvemeno fdactual damages or impossible to ascertain. Therefore, from are speculative in nature and will beEvent tof Default, Owner shall not be eligible upon termination of this Agreement for anyy for the Abatement for the remainingTerm and dance with this City, Agreementfor as leachdyear damages, all taxes that were abated in accord when an Event of Default existed and which otherwise would have been paid to the City in the absence of this Agreement. The City and Owner agree that this amount is a reasonable approximation of actual damages that the City will incur as a result of an uncured Event of Default and that this Section 4.3 is intended to provide the City with compensation for actual damages and is not a penalty. This amount may be recovered by the City through adjustments made to Owner's ad valorem property tax appraisal by the appraisal district that has jurisdiction over the Premises. Otherwise, this amount shall be due, owing and paid to the City within sixty (60) days following the effective date of termination of this Agreement. In the event that all or any portion of this amount is not paid to the City within sixty (60) days following the effective date of termination of this Agreement, Owner shall also be liable for all penalties and interest on any outstanding amount at the statutory rate for delinquent taxes, as determined by the Code at the time of the payment of such penalties and interest (currently, Section 33.01 of the Code). 4.4. Termination at Will. If the City and Owner mutually determine that the development or use of the Premises or the anticipated Required Improvements are no longer appropriate or feasible, or that a higher or better use is preferable, the City and Owner may terminate this Agreement in a written format that is signed by both parties. In this event, (i) if the Term has commenced, the Term shall expire as of the effective date of the termination of this Areement; (ii) there shall be no recapture of any taxes previously abated; and (iii) g neither party shall have any further rights or obligations hereunder. 4.5. Sexually oriented Business &Liquor Mores or a. Owner understands and agrees the City has the right to terminate this agreement if the Project contains or will contain a sexually oriented business. b. Owner understands and agrees that the City has the right to terminate this agreement as determined in City's sole discretion if the Project contains or will contain a liquor store or package store. 5. EFFECT OF SALE OF PREMISES. Except for an assignment to Woodhaven Homes, L.P., or any other builder or developer approved by the Housing Department Director, or Owner's first mortgagee or to a homebuyer who will use the Required Improvements as its primary residence of the homeowner's mortgagee which City Council hereby agrees to, this Abatement cannot be assigned without the prior consent of the City Council, which consent shall not be unreasonably withheld provided that (i) the City Council finds that the proposed assignee is financially capable of meeting the terms and conditions of this Agreement and (ii) the proposed purchaser agrees in writing to assume all terms and conditions of Owner under this Agreement. Owner may not otherwise assign, lease or convey any of its rights under this Agreement. Any attempted assignment without the City Council's prior consent shall constitute grounds for termination of this Agreement and the Abatement granted hereunder following ten (10) calendar days of receipt of written notice from the City to Owner. Upon assignment to Owner's first mortgagee, or to a homebuyer who will use the Required Improvements as its primary residence or the homeowner's mortgagee, er this agreement. In addition, Owner shall have no further obligations the writtenr duties consent of City Council, Owner upon assignment to any other entity with shall have no further duty or obligation under this agreement. F A SALE OR THE FAILURE OF OWNER TO SEND THETSI ANDOEXECUTION OF THE SALE OF THE REQUIRED IMPROVEMEN ASSIGNMENT OF THIS AGREEMENT WNE1THE S IP EOFO THE REQUIRED HIN 30 DAYS OF THE TRANSFER OF O IMPROVEMENTS SHALL RESULT IN THE ECU HD ASSIGNMENT MUOSTUTOMATIC BE THIS AGREEMENT. THE NOTICE AND E SENT TO THE CITY BY CERTIFIED MAIL OR BY HAND DELIVERY. (,. NOTICES. All written notices called for or required by this Agreement shall be addressed to the following, or such other party or address as either party designates in writing, by certified mail, postage prepaid, or by hand delivery: City: City of Fort Worth Attn: City Manager 1000 Throckmorton St, Fort Worth, TX 76102 and o Owner: Waterview Estates, L.P. Pars lnvestmerit, Inc., General Partner 3901 Airport Freeway, Suite 200 Bedford, TX 76021 7, MISCELLANEOUS. 7.1, Bonds. The Required Improvements will not be financed by tax increment bonds. This Agreement is subject to rights of holders of outstanding bonds of the City. 7,2. Conflicts of Interest. Neither the Premises nor any of the Required improvements olan covered by this Agreement are owned or leased by any member of the City Y City Planning or Zoning Commission or any member of the governing body of any taxing units in the Zone. 793, Conflicts Between Documents. In the event of any conflict between the City's zoning ordinances, or other City ordinances or regulations, and this Agreementhesuch bod ordinances Agreem ntlandns shall Exhibit control. In the event of any conflict between t y °D", the body of this Agreement shall control. 7.4. Future Application. A portion or all of the Premises and/or Required impa result of exist ngvements may be elawlbor for complete or partial exemption from ad valorem taxes as evi Bence that such future legislation. This Agreement shall not be co improvements. as exemptions do not apply to the Premises and/or Required 795, City Council Authorization. This Agreement was authorized by the City Council through approval of Mayor and Council Communication No.C-22333 on November Agreement 2on behalf of,the City. other things, authorized the City Manager to execute t 7.6. Estoppel Certificate. Any party hereto may request an estoppel certificate from another party hereto so long as the certificate is requested in connection na fide Ow cude� sebut not certificate, which if requested will be addressed to the , rce and necessarily be limited to, statements that this Agreement he nature of the Event of effect of Defaultand without default (or if an Event of Default exists>f this curative action taken and/or necessary to effect ), , the ein remaining t such other em o Agreement, the levels and remaining term of the Abate matters reasonably requested by the party or parties to receive the certificates. 7,7, Owner Standinge er and necessary party in any litigation questioning Owner shall be deemed a prop or challenging the validity of this Agreement ri any of Agreement,ng andOwnershallbe resolutions or City Council actions authors g entitled to intervene in any such litigation. 7,8, Venue and Jurisdiction. the lawsthe State of This Agreement shall be construed in accordanceoliciestof the City. oVenue for any Texas and applicable ordinances, rules, regulations or p shall lie in the State District Court of Tarrant County, Texas@ action under this Agreement This Agreement is performable in Tarrant County, Texas. 7999 Recordation. this Agreement in recordable form shall be recorded in the A certified copy of Deed Records of Tarrant County, Texas. 7.10. Severabili . illeal or unenforceable, this Agreement is held nbn invalid,ons If any provision of tobe shall not n any way the validity, legality and enforceability of the remaining p be affected or impaired. 7.11. Headin¢s Not Controlling. Headings and titles used in this Agreement are for reference purposes only and shall not be deemed a part of this Agreement. 7,12, Entirety of Agreement. This Agreement, including any exhibrie entireed hereto and any documents understanding and agreement incorporated herein by reference, contains hmatters between the City and Owner, their assigns coral contained herein. Any or contempsuccessors written agreements hereby prior oraneous declared null and void to the extent in conflsc This Agreement shall not be amended unlesexecutedwitht ovi in rwriting by both part0 s on of this eesland d in approved by the City Council. This Agreement may e bexecuteall of which Ishae counterparts, each of which shall be consideredoriginal, constitute one instrument. 2008, by the City of Fort Worth, EXECUTED this Z� day of Texas. EXECUTED this _day of 2t!�� 2008, by Waterview Estates, L.P., Pars Investment, Inc., General Partner. CITY OF FORT WORT.-h AT"TEST: By: ty Manager APPROVED AS TO FORM AND LEGALITY: Assistant City Attorney Mehrdad Moayedi President STATE OF TEXAS § COUNTY OF TARRANT § F BEFORE ME, the undersigned authority, on this day personally appeared � Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation, known to me to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the said CITY OF FORT WORTH, TEXAS, a municipal corporation, that he was duly authorized to perform the same by appropriate Mayor and Council Communication of the City Council of the City of Fort Worth and that he executed the same as the act of the said City for the purposes and consideration therein expressed and in the capacity therein stated. 1ANDGIVEN UNDER MY HAND SEAL OF OFFICE this 21 day of A I , A. . 2008. /� � � cot�Yv�9tr MR.HIA S. SA�ICN�L Nota y Public in and for NOTARY PUBLIC the State of Texas STATE 0 TI ;iAS 0% Uy Comm. Exp. f 2-14-2009 Notary's Printed Name STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally s I appeared e redts� MenrInc.ci d. TvIoaye Partner, Waterview Estates, L.P., a Texas Limited Partnership, known to me to be the person whose name is subscribed purposes andthe g�o g ideratione therein acknowledged to me that he executed the same for thep rposes ity therein stated and as the d of Waterview Estates, L.P., a expressed, in the capac Texas Limited Partnership, Pars Investment, Inc., General Partner. EN UNDER Notary Public in and for the State of Texas Notary's Printed Name MY HAND 2009, AND SEAL OF OFFICE this l day of My Commission Expires f� July 14, 20D8 Exhibit A: NEZ Incentives Exhibit B: Property Description Exhibit C: Application: (NEZ) Incentives and Tax Abatement including kind, number and location of the proposed Exhibit D: Project description improvements. Exhibit E: Final Survey and Independent Appraisal Exhibit A CITY OF FORT WORTH NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) TAX ABATEMENT POLICY AND BASIC INCENTIVES I. GENERAL PURPOSE AND Chapter 378 of the Texas Local Government Code allows a municipality to create a Neighborhood Empowerment Zone (NEZ) when a "...municipality determines that the creation of the zone would promote: (1) the creation of affordable housing, including manufactured housing, in the zone; (2) an increase in economic development in the zone; (3) an increase in the quality of social services, education, or public safety provided to residents of the zone; or (4) the rehabilitation of affordable housing in the zone." The City, by adopting the following NEZ Tax Abatement Policy and Basic Incentives, will onomic development in Neighborhood Empowerment Zones. promote affordable housing and ec NEZ incentives will not be granted after the NEZ expires as defined in the resolution designating the NEZ. For each NEZ, the City Council may approve additional terms and incentives as permitted by Chapter 378 of the Texas Local Government Code or by City Council resolution. However, any tax abatement awarded before the expiration of a NEZ shall carry its full term according to its tax abatement agreement approved by the City Council. As mandated by state law, the property tax abatement under this policy applies to the owners of real property. Nothing in the policy shall be construed as an obligation by the City of Fort Worth to approve any tax abatement application. II. DEFINITIONS "Abatement" means the full or partial exemption from City of Fort Worth ad valorem taxes on eligible properties for a period of up to 10 years and an amount of up to 100% of the increase in appraised value (as reflected on the certified tax roll of the appropriate county appraisal district) resulting from improvements begun after the execution of the tax abatement agreement. Eligible properties must be located in the NEZ. "Base Value" is the value of the property, excluding land, as determined by the Tarrant County Appraisal District, during the year rehabilitation occurs. "Building Standards Commission" is the commission created under Sec. 7-77, Article IV. Minimum Building Standards Code of the Fort Worth City Code. "Capital Investment" includes only real property improvements such as new facilities and tsite improvementsfacility expansion, and facility modernization. Capital Investment sructures, , does NOT include land acquisition costs and/or any existing improvements, or personal property (such as machinery, equipment, and/or supplies and inventory). 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 project at is (or rmeetssto the 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. ich proposes to ct "Community Facility Development Project" is a dth toa owsmentsuch use project has defined by the Cityof or rehabilitate community facilities on property Fort Worth Zoning Ordinances physical improvements to real property. Eligible "Eligible Rehabilitation" includes .only phY such as furniture, appliances, equipment, Rehabilitation does NOT include personal property and/or supplies)m y taking the outside floor "Gross Floor Area,, is measured blordim utilities or storage,band Ianyaaeash within level, except that portion of the basement used only the building used for off-street parking. "Minimum Building Standards Code" is Article IV of he Fort Worth City Code adopted pursuant to Texas Local Government Code, Chapters 5 and nority or "Minority Business Enterprise (MBE)" and "Womenedification asseitherr arise cert��d )MBE or' certified owned business that has receive 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 20ro percent ses for more oftthe rehabilitate mixed -use facilities in which residential uses constitutep t, and/or retail salesand total gross floor area, and office, eating and entertainmenthat SS Nor meets constitute 10 percent or more of the totaed ul egross as described bed by the City of Fort Worth Zoning the requirements to be) zoned mix Ordinance. oses to "Multi -family Development Project" is a development ts the requ�ements to nstruct or rehabilitate multi -family residential living n on property that is (or mee be) zoned multi -family or mixed use as defined by the City of Fort Worth Zoning Ordinance. °` "Commercial/Industrial Development "Project" means a "Residential Project. Project'; "Community Facility Development Project'; "Mixed -Use Development Project'; or a "Multi -family Development Project." "Reinvestment Zone" is an area designated as suchby the cited on Fort Worth of accordance with the Property Redevelopment and Tax Abatement Act he Texas Tax Code, or an area designated as an enterprise zone pursuant to the Texas Enterprise Zone Act, codified in Chapter 2303 of the Texas Government Code. Adopted 5-15-2007 2 A. RESIDENTIAL PROPERTIES LOCATED IN A NEZ- FULL ABATEMENT FOR 5 YEARS 1. For residential property purchased before NEZ designation, a homeowner shall be eligible to apply for a tax abatement by meeting the following: upied and the primary residence o a. Property is owner-occf the homeowner prior to the final NEZ dafFldavip by a 'i of heirship,HomeoNner lprovide proof orr a p obated w ll,and shall show hproof of warranty deed, 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. ible Rehabilitation costs on the property shall be For rehabilitated property, Elig 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. MULTI -FAMILY DEVELOPMENT PROJECTS LOCATED IN A NEZ 1. 100%Abatement for 5 years. less this section shall apply. n Adopted 5-15-2007 3 subj Abatements for multi -family development projects for up to the Hous ars are artmenttfo� City Council approval. The applicant may apply w ithsuch abatement. The applicant must apply for the tax abatement and be approved by City Council before construction or rehabilitation is started. In order to be eligible for a property tax abatement upon completion, a newly constructed or rehabilitated multi -family development project in a NEZ must satisfy the following: At least twenty percent (20%) of the total units constructed or rehabilitated shall be affordable (as defined by the U. S. Department of Housing and Urban Development) to persons with incomes at or below eighty percent (80%) of area shall be set aside for median income based on family size and such units persons at or below 80% of the medianementor City Council defined may waive or Department of Housing and Urban Devlo p case basis; and reduce the 20% affordability requirement on a case -by - (a) For a multi -family development project constructed) afterNEZd ssign thavehe project must provide at least five (5) resident g Z minimum Capital Investment of $200,000; or (b) For a rehabilitation project, the property must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property. Such Eligible Rehabilitation costs must come from the rehabilitation of at least five (5) residential living units or a minimum Capital Investment of $200,000. 2. years this section span apply. Abatements for multi -family development proje fts W ith theoHous Housing Departmenttfor City Council approval. The applicant may apply such abatement. The appli cant must apply for the tax abatement and be approved by City Council before construction or rehabilitation is started. Years 1 throu n 5 or the I aX rua«� � ��� �� • • • ---• • - Multi -family projects shall be eligible for 100% abatement of City ad valorem axes 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 Housing 'atated Urban shall 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 it s Counc d may waive or Department of Housing and Urban Development*Y reduce the 20% affordability requirement on a case -by -case basis; and a. For a multi -family development projectconstructed r al erliviNEZ designation, esignits thaveha project must provide at, least five ( ) minimum Capital Investment of $200,000; or ust be rehabilitated after NEZ b. For a rehabilitation project, the property designation. Eligible Rehabilitation costs on the proerty shall be pe Rehabilitation costs least 30% of the Base Value of the property. Such Eligib must come from the rehabilitation of at least five (5) residential living units or a min_ Capital Investment of $200,000. Years 6 throu h 10 of the i ax hua�C� � ��� �� � ��• • •-• Multi -family projects shall be eligible of°the 1Tax OAbatement, Agreement upon the taxes for years six through satisfaction of the following: itated a. At least twenty percent (20%) of the total apes constructed t of Housing or hand Urban be affordable (as defined by the U. p of area Development) to persons with incomes at or below eighty percent (80%) 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 development project constructed after NEZ designation, the project must provideat least f five$20000; oridential living units OR have a minimum Capital Investmentof property must be rehabilitated after NEZ 2. For a rehabilitation project, designation. Eligible Rehabilitation costs on the Such Eligiblerty shall be at e Rehabilitation costs least 30% of the Base Value of the property. must come from the rehabilitation of at least five (5) residential living units or a minimum Capital Investment of $200,0006 ie t b. Any other terms as City Council of the City of Fort Worth deems appro pra, including, but not limited to: 1. utilization of Fort Worth companies for an agreed upon percentage of the total costs for construction contracts; 26 utilization of certified mwomen for construction b action contrausiness cts; sses for are agreed upon percentage oft a total 3. property inspection; 44 commit to hire an agreed upon percentage of Fort Worth residents 59 commit to hire an agreed upon percentage of Central City residents 6. landscaping; 7w tenant selection plans; and 8. management plans. C, COMIViERCIAL, INDUSTRIAL AND PROJECTS LOCATED IN A NEZ COMfViUNITY FACILITIES DEVELOPMENT 5 1. less this section snau ar�u�y- Abatements for Commercial, Industrial and Community u m approval Facilities The applicant may Projects for up to 5 years are subject to y apply with the Housing Department for such abatement. The applicant must apply I 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: ment ct a. A commercial, industrial or a COSt have a mimunity fa nimum Capital lities p Investmentof constructed after NEZ designation mu $75,000; or b. For a rehabilitation project, it must be shbeated after NEZ at east 30° o of the Base Valueole f Rehabilitation costs on the property shall the property, or $75,000, whichever is greater. years this section snail apr��y. Abatements agreements for o commercial, subject industr'to City Council uapproval. The Development projects for up to 10 year applicant may apply with the Economic and Community Development Department for such abatement. I for the tax abatement and be approved by City Council The applicant must apply before construction or rehabilitation is started. Years 1 throu h 5 of the Tax Abatement H i eC1 l iu, ,L Commercial, Industrial and Community aIa em taxes foro he firstpfi�Je years of the eligible for 100% abatement of City ad v Tax Abatement Agreement upon the satisfaction of the following: ment project a. A commercial, industrial or a co t have a munity inlities imum Capital p Investment of constructed after NEZ designation mu $75,000; or b. le For a rehabilitation project, it must be rehabilitated bet at east 30° o of the Base Value of Rehabilitation costs on the property shall the property, or $75,000, whichever is greater. Years 6 through 10 of the Tax Abatement AgreementI shall be Commercial, Industrial and Community FacilitiesDevelopment projectsix ugh ten of eligible for 1%-100% abatement of City ad valorem taxes for yea the Tax Abatement Agreement upon the satisfaction of the following: a. A commercial, industrial or a community facilities development project constructed after NEZ 0 and must designation meet he requirements of Isubsection Capital Investment of $75,00(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 $75,0009 whichever is greater and meet the requirements of subsection (c) below. c. Any other terms as City Council of the City of Fort Worth deems appropriate, including, but not limited to: 1. utilization of Fort Worth companies for an agreed upon percentage of the total costs for construction contracts; 2. utilization of certified minority and women owned business enterprises for an agreed upon percentage of the total costs for construction contracts; 3. commit to hire an agreed upon percentage of Fort Worth residents; 44 commit to hire an agreed upon percentage of Central City residents; and 5. landscaping. D. MIXED -USE DEVELOPMENT PROJECTS LOCATED IN A NEZ 1. less this section snail appiv. Abatements for Mixed -Use Development Projei tsvf th the Hous ngsDepartmenttfo� City Council approval. The applicant may apply such abatement* The applicant must apply for the tax abatement and be approved by City Council before construction or rehabilitation is started. ion, a newly In order to be eligible for axed - property ose developmenrt project nna NEZ must satisfy he constructed or rehabilitated mi following: a. Residential uses in the project constitute 20 percent or more of the total Gross Floor Area of the project; and project, b. office, eating and entertainment, eand/or of the total Gross Floor A Area of the . project constitute 10 perc and (1) A mixed -use development project constructed after NEZ designation must have a min_ Capital Investment of $200,000; or Adopted 5-15-2007 7 signa ione (2) For a rehabilitation project, it must be rehabilitated after N3 ° e the Base Eligible Rehabilitation costs on the property shall be at Value of the property, or $200,000, whichever is greater. n Years this section snail app� 0 years Abatements agreements for a Mixed UTh Development layojects applyfor withpto the 1Hous ng are subject to City Council approval,pp Department for such abatement. The applicant must apply for the tax abatement before construction orehabilitation is started and the application for the tax abatement must be approved Council. Years 1 throu h 5 of the Tax Abatement H � GCS � Mixed Use Development projects shallobthelfTaxeAbatem0en°t Agreement upon the valorem taxes for the first five years 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 entertainmento e of the and/or retail sales and service uses in the total Gross Floor Area of the project; project constitute 10 percent or m and t c. A new mixed -use developmenproject constructed after of $200,000;or fora rehabilitation project, it have a min_ mu Capital Investme must be rehabilitated after No Z designation. ase Value of ible Rehabilitation property, o� $200,000, sts on the property shall be at least 30 /o of whichever is greater. Years 6 throu h 10 of the Tax Apatemern h ��� Mixed Use Development projects shall blTax Abatem0e/nt Agreement upoln the valorem taxes for years six through ten of the satisfaction of the following: a. Residential uses in the project constitute 20 percent or more of the total Gross Floor Area of the project; and b. Office, eating and entertainment, and/or retail Gross Floor Area of the project sales and service uses in e project constitute 10 percent or more of the tot c. A new mixed -use development project co 0 constructedafter forea r EZ desto on tionpromust have a minimum Capital Investment of $20 000, must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the Adopted 5-15-2007 8 E. shall be least 30% of the Base Value of the property, or $200,000, property whichever is greater; and d. Any other terms as City Council of the City of Fort Worth deems appropriate, including, but not limited to: 10 utilization of Fort Worth companies for an agreed upon percentage of the total costs for construction contracts; 2. utilization of certified minorityof the total costs fordbusiness constructi construction for contracts; an agreed upon percentagee 3. property inspection; 4. commit to hire an agreed upon percentage of Fort Worth residents 5, commit to hire an agreed upon percentage of Central City residents 6. landscaping; 7a tenant selection plans; and 39 management plans. ABATEMENT GUIDELINES 1. If a NEZ is located in a Tax Increment Financing Dftr(ty Council determine on a case -by -case basis if the tax abatement incentives in Section will be offered to eligible Projects. Eligible Projects must meet all eligibility requirements specified in Section III. nt ne, in order 2. If a Project is located in the Woodhavef Neagtaxrabatemehood nt undee th so policy, t e to be considered eligible to applythe Woodhaven Woodhaven Community Development poration and e submittedra letter of support for the Project to Neighborhood Association must hav the City of Fort Worth r a tax abatement, the property owner/developer 3. In order to be eligible to apply fo must: a. Not be delinquent in paying property taxes for any property owned by the owner/developer, except that an owner/developer may enter into a tax abatement agreement with the city of Fort Worth for a specific Project if: 1. the Project meets N tax abatement criteria; and for the tax 2. the applicant is not responsible delinquency for the Property; and 3. the applicant enters into an agreement to pay off the taxes under the 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 property owned by the b. Not have any City of Fort Worth liens filed against not I mited to, weed applicant property owner/developer. "Liens" include, but are liens, demolition liens, board-up/open structure liens and paving liens. 4. Projects to be constructed on property to be purchased under a contract for deed are not eligible for tax abatements. Adopted 5-15-2007 0 including multi -family) in the 5. Once a NEZ property owner of a residential property ( lies for an NEZ satisfies the criteria set forth in erinto a tax abatement agreement with the City abatement, a property owner may entthe of Fort Worth. The tax abatement agreement ge eeement sshall in violation lof the City off Fort property subject to the tax abatement g Worth's Minimum Building Standards Code and the owner is convicted of such violation. ll. can only be 6. A tax abatement granted under the criteria maximum termeof as specifiedset forth in Sction Iin the granted once for a property in a NEZ for agreement. If a property on which tax is being abated is sold, the City will assign the tax abatement agreement for the remaining term once the new owner submits an applications owner/developer of a multifamily development, nthe NEZ who (desires la 7. A property community under Sections es and 'dlll BeC or D must development proje tax abatement a. Satisfy the criteria set forth in Sections III.B, C or D, as applicable, and Sections III.E.1 E.2; and E3. and applicable; and b. File an application with the Housing Department, as ith the City of c. The property owner must enter into a tax aof agreementtement , abet ment Fort Worth. In addition to the other to agreement shall provide that the agreement violationofthle City of Fortly terminate if Worth's Minimum owner receives one conviction of a vi property subject to the abatement Building Standards Code regarding the prop y 1 agreement during the term wh cment; and h t xhe tax is being abatedbatement es sold, the new owner may d. If a property in the NEZ o 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 mentoIn he event met, the 'of cancellation, the right to cancel or amend the abatement g recapture of abated taxes shall be limited to the year(s) in which the default occurred or continued. 9. The terms of the agreement shall include mentstin each yeof Fort ar durinright review g the life of the and verify the applicants financial state givenany year, (2) conduct an on site agreement prior to granting a tax abatement ring the life of the abatement to verify inspection of the project in each year 3 terminate the compliance with the terms ntainsf teorawill bontainna sexually noriented business (4 agreement if the Project co etermo�nea kin City,s a sole discretion, if the Project terminate the agreement, as d contains or will contain a liquor store p e store g 10. Upon completion of construction of the facilities, the City shall no less than annually compliance f the evaluate each project receiving abatement to I will be reported to the City Councils agreement. Any incidents of non-compliance February 1st of every year during the life of the agreement, any On or before tax abatement from the City of For Worth shall individual or entity receiving a Adopted 5-15-2007 10 ' perty provide information anddocumentationective which eement and shall certify eowners rtify that the of the es compliance with the terms P owner is in compliance with each applicable term of the agreement. Failure to report this information and to provide the required certification hall s abated intheprior yearhe above beingdline due result in cancellation of agreement and any taxe and payable. may 11. If a property in the NEZ on which tax is being abated ed far the remaininghe new terms Any enter into a tax abatement agreement on the property sale, assignment or lease of the property aic permiand ttec apturein the t of ab y taxes aatement agreement results in cancellation of theagreement 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 $100. 3. The application fee for multi -family, commercial, industrial, community la ci iti is oned mixed -use development projects of the governed under roposed Pro ect's Cap'talons 111.1301 C. ln Investment, with a $200 half of one percent (0.5 /) p Application Fee shall not be credited or minimum not to exceed $2,000. The refunded to any party for any reason. IV. FEE WAIVERS A. ELIGIBLE RECIPIEIVTSIPROPERTIES whether a 2 3 City Council shall determine on a caseacka a stoaelss el Bible to apply Project as feel contain or contains a liquor store or p g waiver. ne, in er If a Project is located in the Woodhaven fee'waiver under rhood Empowermehis PocyntheoWoodhaven to be considered eligible to apply for a Community Development Corporation and the Woodhave for the Project eighbt the City of Fort Association must have submitted a letter of support Worth —however, once the NEZ Plan is submitted for the Woodhaven NEZ, this will no longer be required. 4. Projects to be constructed on property to be purchased under a contract for deed are not eligible for development fee waivers. 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 b must not be delinquent in paying property taxes for any property owned by the owner/developer or applicant; owned b the applicant c. nCity liens filed against any property Y property havowne liens, demolition must not have any per, including but not limited to, weed liens, board-up/open structure liens and paving liens; and ackage store or a sexually d. of a Project that will contain or contains a liquor store, p oriented business has received City Council's determination that the Project is eligible to apply for fee waivers. g. DEVELOPMENT FEES Once the Application for NEZ Incentives has been aproved and City, the of Fort Worth for certified Projects thn he NEZ following fees for services performed by the C v are waived for new construction projects or aReitatio projects on costs: st that expend at least Eligible 30% of the Base Value of the property on 1. All building permit related fees (including Plans Review and Inspects plat, short form 2. Plat application fee (including concept plan, preliminary plat, replat) 3. Board of Adjustment application fee 4. Demolition fee 5. Structure moving fee application fee 6. Community Facilities Agreement (CFA) 7. Zoning application fee 8. Street and utility easement vacation application fee 9. Ordinance Inspection Fees ►ication Fees 10. Consent/Encroachment Agreement App i 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 ewastewater commerc commt fees ercial, industrial, pmmixed 000 or uoe or equivalent to two 6-inch meters for community facility development project. b. If the project requests an impact feW waiver inch meter; then city Council approval is waiver for larger and/or more than t 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 RECIPIENTS/PROPERTIES 1. City Council shall determine on a case -by -case basis whet e{oa Pr ly for a fee�Il contain or contains a liquor store or package store is eligiblepp waiver. 2. If a Project is located in the Woodhaven Neighborhood oo ens under m snt Zo Poly, n order to be considered "eligible" to apply for releasetY Woodhaven Community Development Corporation and the Woodhaven Neighborhood Association must have e {� itted a NEZ Plais rof submtted foport o the Woodhaven the Project to the City of Fort Worth —however, one 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. 4. In order for a property owner/developer to be eligible to apply for a release of city liens contained in Section V.B., C., D., and E. for a- Project, the property owner/developer: a. must submit an application to the City; owned b the b. must not be delinquent in paying property taxes for any property Y owner/developer; b. must not have been subject wasBuirol demolished Standards thecommission's last five (5) ye Order of Demolition where the property c. must not have any City of Fort Worth liens filed against any other property owned by the applicant property owner/developer. "Liens" includes, but is not limited to, weed liens, demolition liens, board-up/open structure liens and pore oraving ie sexually d. of a Project that contains or will contain a liquor store, package oriented business has received City Council's determination the Project is eligible to apply for release of City liens. city liens, the 5. In order for a Rehabilitation Project Rehabilitalfy tion �osts onease the Property petty of at lease owner/developer must spend Eligible 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. Be WEED LIENS The following are eligible to apply for release of weed liens: 1. Single unit owners performing rehabilitation on their properties. Adopted 5-15-2007 13 2. Builders or developers constructing new homes on vacant lofts. 3. Owners performing rehabilitation on multi -family, commercial, industrial; mixed -use, or community facility properties. -family, commercial, industrial, mixed -use or 4. Developers constructing new multi community facility development projects. C. DEMOLITION LIENS Builders or developers developing or rehabilitating a property for a Project are eligible to apply for release of demolition liens for up to $30,000. Releases of demolition liens in excess of $30,000 are subject to City Council approval. D. 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 ily homes to nd cant l,omixed-use, 3. Owners performing rehabilitation on multi y, or community facility propertiese mily, commercial, industrial, mixed -use, or 4. Developers constructing multi-fa community facility projects. E. 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. VI. PROCEDURAL STEPS A. APPLICATION SUBMISSION The applicant for NEZ incentives under Sections III. IV., and V. musthe appeopr ate submit a City of Fort Worth Application for NEZ Incentives" and pay application fee to the Housing Department, as applicable. and The applicant for incentives under Sections Dnt' andmust pay the ppralso opr ate submit a City of Fort Worth Application for Tax Ab teme Development Office. The application fee, review, application fee to the Economic evaluation and approval will be governed by City of Fort Worth Tax Abatement Policy. Statement for Qualifying Development Projects. 1 2. CERTIFICATIONS FOR APPLICATIONS UNDER SECTIONS III. IV, AND V 1. The Housing Department will review the application for accuracy and Adopted 5-15-2007 14 C. 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 multi - a. Housing Department: property tax abatement for residential properties an 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 departmentloffice 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. 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 (MNVBEs). (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 Councils 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 nto fading and (b) instruct city staff to incorporate the application abatement agreement for future consideration by the City Council. (3) Consideration by the City Council abaLei The City Council retains sole authority to approve or deny anytax abatement agreement and is under no obligation to approve any 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 I of the year following the year in which a Certificate of Occupancy (CO) is issued for the qualifying developmentotherwise tspecified in these agreement, in taxes tthe ax abatement agreement). Unless able. levied during the construction of the project shall be due and pay 2. ent for Commercial, Industrial, Community Facilities, and Property Tax Abatem Mixed-Use Development Projects e years of tax a. For a completed and certified application C'ty Managerthan shall vexecute a tax abatement, with Council approval, 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 st uction contractsinfrastructure commitedparticipation, etc.). (c) Percent of con (i) Fort Worth based firms, and (ii) Minority and Women owned Business Enterprises (MNVBEs). (d) Other items which the City and the applicant may negotiate. (2) Consideration by Council Committee Based upon the outcome of the evaluation, the Economic Development Office may present the application to the City Council's Economic Development Committee. Should the Economic Development Office present the application to the Economic Development Committee, the Committee will consider the application at an open meeting. The Committee may: Adopted 5-15-2007 16 VI1. (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 incentiveso 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. REFUND POLICY Adopted 5-15-2007 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. VII1. OTHER INCENTIVES A. Plan reviews of proposed development projects in the NtL wui oe ex�e���Cu uy 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 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 isy ncentives provided for under the NEZ the folTax batement lowing pePsolicy and Basic ns and organizations an owner/developer must meet with onlseto 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: h t 1. the owner/developer meeting withe 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 bect is located and 2. meeting with the City Council Member that tor the Disthe or�cpthe e elope attempted to roi upon the owner/developer providing proof 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 nce the a NEZ which the City Council has not approved a NEZ Strategic Plan. O 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, fihis policy applies to all development and impact fees waived by the City through the NEZ. ents are Under the NEZ Tax Abatement Policy and Basic Incentives, City Departm authorized to waive impact and development fees for quaproj lified ects 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 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. Refund Charge 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 regulafiions 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 5621 Grenada Drive; Lot 6; Block 1; 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.