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HomeMy WebLinkAboutContract 36964CONTR CT NO 9 V TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED 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 zones 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. 03-28-08 A08�35 IN D. The NEZ Incentives contains appropriate guidelines and criteria governing tax abatement agreements to be entered into by the City as contemplated by Chapter 312 of the Texas Tax Code, as amended (the "Code"). E. On February 3, 2004, the Fort Worth City Council adopted Ordinance No. 15854 (the "Ordinance") establishing "Neighborhood Empowerment Reinvestment Zone No. 16," City of Fort Worth, Texas (the "Zone"). F. Owner owns certain real property located entirely within the Lake Arlington NEZ ribed in Exhibit "B", attached hereto and hereby and that is more particularly desc made a part of this Agreement for all purposes (the "Premises"). G. Owner or its assigns plan to construct the Required Improvements, as defined in Section 1.1 of this Agreement, on the Premises to be used for as a single-family residence that will be owner occupied. (the "Project"). H. On August 13, 2004, Owner submitted an application for NEZ incentives and an application for tax abatement to the City concerning the contemplated use of the Premises (the "Application"), attached hereto as Exhibit "C" and hereby made a part of this Agreement for all purposes. I. The City Council finds that the contemplated use of the Premises, the Required Improvements, as defined in Section 1.1, and the terms of this Agreement are consistent with encouraging development of the Zone in accordance with the purposes for its creation and are in compliance with the NEZ Incentives, the Resolution and other applicable laws, ordinances, rules and regulations. J. The City Council finds that the terms of this Agreement, and the Premises and Required Improvements, satisfy the eligibility criteria of the NEZ Incentives. K. Written notice that the City intends to enter into this Agreement, along with a copy of this Agreement, has been furnished in the manner prescribed by the Code to the presiding officers of the governing bodies of each of the taxing units in which the Premises is located. NOW, THEREFORE, the City and Owner, for and in consideration of the terms and conditions set forth herein, do hereby contract, covenant and agree as follows: 1. OWNER'S COVENANTS. 1.1. Real Property Improvements. Owner shall construct, or cause to be constructed, on each lot within the Premises for which tax abatements are requested, certain improvements consisting of a single- family residence (collectively, the "Required Improvements"), of at least 1200 square feet of living space in size with 3 bedrooms and one and one-half baths, with 70% mortared brick and having an appraised value of $80,000.001 as determined by an independent appraiser (collectively, the "Req Juri e RImprovements"), ed Imp oOwner Improvements before the provide a survey of the completed home sho g q home is sold and a copy of the independent hall be appraisal s art of thfter the is Agreement) andle. The parties shall hallhbe the final survey and independent appraisals p labeled Exhibit E. Minor variations, and m �r in the Required Improvemente substantial variations if s from the writing by both of the parties to this Agreement,itute an description provided in the Application for Abatement the conditionsnot n the first sentenceeof of Default, as defined in Section 4.1, provided that this Section 1.1 are met and the Required Improvements are used for the purposes and in the manner described in Exhibit D . Owner covenants to substantially complete construction of all of the Required Ipermi mprovements within one year from the issuance and receipt of hich case the two yearseshall be extended unless delayed because of force majeure, in wof this by the number of days comprising the specific force a eure. s �easoableuoses control, Agreement, force majeure shall mean an evebeyondny including, without limitation, delays caused be nmental authority,adverse weather, )elays or acts of God fiin receipt of res, required permits or approvals from any gov shortages as strikes, national disasters, wars, riots and n its material oleor adiscretionbor tl whichons dshall of be determined by the City of Fort Worth t shall not include construction indelays caused the due to purely unreasonably withheld, buof adequate financial matters, such as, without limitation, delays financing. 1.3. Use of Premises. Owner covenants that the Required Improvements shall be constructed and the Pimary resi remises shall be sold so that of the it is continuously of the Proused as hectrset forth in theidenceExhibit Home Buyer in accordance with the descriptionthe Required In addition, Owner covenants that throughout the Term, Ihe purposes mprovements shall be operated and maintaset forth in this i ed ith the for teneral purposes of encourageing Agreement and in a manner that is consistent w g development or redevelopment of the Zone. 2. Subject to and in accordance with this Agreement, the City hereby grants to Owner a real property tax abatement on the Premises, the Required Improvements, as specifically provided in. this Section 2 ("Abatement"). "Abatement" of real property taxes only includes City of Fort Worth -imposed taxes and not taxes from other taxing entities. 2At Amount of Abatement. The actual amount of the Abatement granted under this Agreement shall be based upon the increase in value of the Premises and the Required Improvements over their values on January 1, 2007, the year in which this Agreement was entered into: One Hundred percent (100%) of the increase in value from the construction of the Required Improvements. If the square footage requirement and the appraised value of the Required Improvements are less than as provided in Section 1.1 of this Agreement, Owner shall not be eligible to receive any Abatement under this Agreement. 2.2. Increase in Value. The abatement shall apply only to taxes on the increase in value of the Premises due to construction of the Required Improvements and shall not apply to taxes on the land. 2,3. Term of Abatement. The term of the Abatement ("Term") shall begin on January 1 of the year following the calendar year in which a Required Improvement is sold to a Home Bits primary residence ("Beginning Date") and, unless sooner uyer to be used as terminated as herein provided, shall end on December 31 immediately preceding the fifth (5th) anniversary of the Beginning Date. Upon the sale to a Home Buyer, City shall certify that the Required Improvements have been completed in satisfaction of the terms of the agreement. However, the Compliance Auditing Term will begin on the date this agreement is executed and will end on the expiration fate of the Term. 2.4. Protests Over Appraisals or assessmeuw. Owner shall have the right to protest and contest any or all appraisals or assessments of the Premises and/or improvements thereon. 2.5. Abatement Application Fee. The City acknowledges receipt from Owner of the required Abatement application be of $25.00 per single family house. The application fee shall not be credited or refunded to any party for any reason. t� 3.1. Inspection of Premises. Between the execution date of this Agreement and the last day of the Term, at any he Required Improvements time during construction of tmt reaso able accesfollowing s tothe Premises nnotice n order for to Owner, the City shall have and Owner shallprovide the City to inspect the Premises and evaluate the Required Improvements to ensure and conditions and/or egaluation. Owner shall cooperate compliance with the terms fully with the City during any such inspection 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 ecerigt taudit at the City's expense the fications listed in Exhibit D. Owner must Required Improvement with respects to the sp provide documentation that Owner is using the Required Improvements as its primary Term residence (collectively, the "Records") at any i duri Owner shallng the Cm i male a pliance llting applicable in order to determine compliance with thisAgreement. Records available to the City on the Premise hall other cation in the City following aotherw se lc000perate fully with the and s City reasonable advance notice by the City during any audit. 3.3. Provision of Information. On or before February 1 following the end of every year during the Compliance Auditing Term and if requested the City, es Ownall provide information and compl compliance with each oft e documentation for the previous yearr t that address Owner terms and conditions of this Agreement for that calendar year. Failure to provide all information within the control of Owner required by this Section 3.3 shall constitute an Event of Default, as defined in Section 4.1. 3.4. Determination of Compliance. ting Term, the On or before August 1 of each year during actual annualCompliance percentages of Abatement City shall make a decision and rule on the ing year of the Abatementsgrantedhll t ify owner of such available to Owner for the followfor as given year of decision and ruling. The actual percentage of t 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 f this Unless otherwise specified herein, Owner shall be in t as definedn Section 1 11e (i) ad Owner fails to construct the Required Improvements with respect to the Premises or the on thet, or its advalorem valorem real property taxes Premise , become taxes with respect to the tangible personal p p y located delinquent and Owner does not timely and properly follow personal property taxesedures for or st or and/or contest of any such ad valorem real property r MISES AS PRIMARY (iii) HOME BUYER DOES NOT USE GINSP iivv )HOME BUYER DOES RESIDENCE ONCE THE ABATEMENT BE NOT COMPLY WITH CHAPTER 7 AND ORTHAPPEN(collectively, each IX B OF Ean "Event nO° ORDINANCE OF THE CITY OF FORT W Default"). 4,2. Notice to Cure. Subject to Section 5, if the City determines descr bes the nature an Event of Default the Eventof the City shall provide a written notice to Owner that Default. Owner shall have ninety (90) calendEvent ofdays rom the Default. date If receipt of this reasonably written notice to fully cure or have cured the believes that Owner will require additional time to iure the after advisnng tt ofheeCitytCouncil n an promptly notify the City in writing, in which case ( ) eighty open meeting of Owner's efforts and intent to cure,0 fe Batten not ee or ( ) if Owner (180) calendar days from the original date of receipt reasonably believes that Owner will require more Coun �l n aan open meetinne hundred eighty g of Owner's cure the Event of Default, after advising the City efforts and intent to cure, such additional time, if any, as may be offered by the City Council in its sole discretion. 4.3. If an Event of Default which is defined in Sectioghe.ClL has h 11 havecther ghhto the time frame specifically allowed under Section 4. , Y terminate this Agreement immediately. Owner acknowledges and arees that an and redevelopmentuncured Event of Default will (i) harm the City s economic efforts on the Premises and in the vicinity of the Premises; vlveme t by the Cirequire ty, and (iii) expensive additional administrative oversight and otherwise harm the City, and Owner agrees thatIt oreim impual damages there ossible t ats of scertain. Therefore, from are speculative in nature and will be difficult p upon termination of this Agreement for any Eveand oof Default5 wner shall pay theer shall ty,not asb qu dated for the Abatement for the remaining Term and damages, all taxes that were abated in accordance with this Agreement for each year when an Event of Default existed and which otherwise would have been paid to the City in the absence of this Agreement. The City and Owner agree that this amount is a reasonable approximation of actual damages that the City will incur as a result of an uncured Event of Default and that this Section 4.3 is intended to provide the City with compensation for actual damages and is not a penalty. This amount may be recovered by the City through adjustments made to Owner's ad valorem property tax appraisal by the appraisal district that has jurisdiction over the Premises. Otherwise, this amount shall be due, owing and paid to the City within sixty (60) days following the effective date of termination of this Agreement. In the event that all or any portion of this amount is not paid to the City within sixty (60) days following the effective date of termination of this Agreement, Owner shall also be liable for all penalties and interest on any outstanding amount at the statutory rate for delinquent taxes, as determined by the Code at the time of the payment of such penalties and interest (currently, Section 33.01 of the Code). 4.4. Termination at Will. If the City and Owner mutually determine that the development or use of the Premises or the anticipated Required Improvements are no longer appropriate or feasible, or that a higher or better use is preferable, the City and Owner may to in ate this Agreement in a written format that is signed by both parties. In this event, i if the Term has commenced, the Term shall expire as of the effective date of the termination of this Agreement; (ii) there shall be no recapture of any taxes previously abated; and (iii) neither party shall have any further rights or obligations hereunder. 4.5. Sexually oriented Business &Liquor Sto a, Owner understands and agrees the City has the right to terminate this agreement if the Project contains or will contain a sexually oriented business. b. Owner understands and agrees that the City has the right to terminate this agreement as determined in City's sole discretion if the Project contains or will contain a liquor store or package store. 5, EFFECT OF SALE OF PREMISES. Except for an assignment to Woodhaven Homes, L.P., or any other builder or developer approved by the Housing Department Director, or Owner's first mortgagee or to a homebuyer who will use the Required Improvements as its primary residence or the homeowner's mortgagee which City Council hereby agrees to, this Abatement cannot be assigned without the prior consent of the City Council, which consent shall not be unreasonably withheld provided that (i) the City Council finds that the proposed assignee is financially capable of meeting the terms and conditions of this Agreement and (ii) the in writing to assume all terms and conditions of Owner under proposed purchaser agrees 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 ed constitute grounds for termination of this Agreemen notch from the City t and the Abatement grant Ownerreunder following ten (10) calendar days of receipto Upon assignment to Owner's first mortgagee, or to a homebuyer who will use the Required Improvements as its primary residence or the homeowner's mortgagee, Owner shall have no further obligations or duties under this agreement. In addition, upon assignment to any other entity with nder this the written tof City Council, Owner shall have no further duty or obligationagreement. THE FAILURE OF OWNER TO SEND THE CITY NOTIFICATION OF THE SALE OF THE REQUIRED IMPROVEMENTS THE NEW OWNER WITHIN 30 ASSIGNMENT OF THIS AGREEMENT DAYS OF THE TRANSFER OF OWNERSHIP OF THE REQUIRED IMPROVEMENTS SHALL RESULT IN MUON OF ST BE THIS AGREEMENT. THE NOTICE AND EXECUTED ASSIGNMENT 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 a either party designates in writing, by certified mail, postage prepaid, or by hand Y 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 �, MISCELLANEOUS. 7,1, Bonds. ll not be financed by taxin Cement bonds. Thi The Required Improvements wits f outstanding bonds of y Agreement is subject to rights of holders o 7,2. Conflicts of Interest. y this Neither the Premises nor any of the Required f the City any membets covered r the Agreement are owned or leased by any memberY mmission or any member of the governing body of any taxing City Planning or Zoning Co units in the Zone. 7,3, Conflicts Between Documents. City In the event of any conflict between the zordinances, or regulationsother ha 1 ordinances or regulations, and this Agreement, such ordinances control. In the event of any conflict between the body of this Agreement and Exhibit "D", the body of this Agreement shall control. 7.4. Future Application. le and/or Required as a result of existing lawents may be or A portion or all of the Premises or for complete or partial exemption from ad valorem to dence that such future legislation. This Agreement shall not be construed as evi rov meets exemptions do not apply to the Premises and/or Required Im p 7,5, CRY Council Authorization. This Agreement was authorized by the Council 2l,through 007, which, other her al of Mayor and Council Communication No.0 22333 0 things, authorized the City Manager to execute this Agreement on behalf of the City. 7,6. Estoppel Certificate. may request an estoppel certificate from another party hereto so Any party hereto ificate is requested in connect long as the certion d to the Ownler, s halless incplude� but not certificate, which if requested will be addressed necessarily be limited to, statements that this �'he nature of the Eventgreement is in full oof Default effect and without default (or if an Event of Default exists, of this curative action taken and/or necessary to effect a curhe Abatementein effect,aininand su h other Agreement, the levels and remaining term of t matters reasonably requested by the party or parties to receive the certificates. 7,7, Owner Standin . Owner shall be deemed a proper and necessary party in any litigation questioning or challenging the validity of this Agreement or any of the underlying laws, ordinances, resolutions or City Council actions authorizing this Agreement, and Owner shall be entitled to intervene in any such litigation. 7.8. Venue and Jurisdiction. This Agreement shall be construed in accordance with the laws of the State of Texas and applicable ordinances, rules, regulations or State icies of the City. Venue for any theate District Court of Tarrant County, Texas. action under this Agreement shall lie in th This Agreement is performable in Tarrant County, Texas. 7.9. Recordation. A certified copy of this Agreement in recordable form shall be recorded in the Deed Records of Tarrant County, Texas. 7.10. Severabili . If any provision of this Agreement is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired. 7.11. Head in¢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 exhibits attached hereto and any documents incorporated herein by reference, contains the entire understanding and agreement between the City and Owner, their assigns and successors in interest, as to the matters contained herein. Any prior or contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict with any provision of this Agreement. This Agreement shall not be amended unless executed in writing nex y bothted inarties a e approved by the City Council. This AgreementY counterparts, each of which shall be considered an original, but all of which shall constitute one instrument. EXECUTED this V� day of , 2008, by the City of Fort Worth, Texas, 20085 by Waterview Estates, L.P., EXECUTED this day of Pars Investment, Inc., General Partner. CITY OF FORT By: ATTEST: TH: City Manager By: y Mehrdad Moayedi President APPROVED AS TO FORM AND LEGALITY: By: Charlene Sanders Assistant City Attorney STATE OF TEXAS § COUNTY OF TARRANT § a BEFORE ME, the undersigned authority, on this day personally appeared Aatffig- Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation, known to me to be the person and officer whosthe actame ls subscribed to the foregoing of the said CITY OF FORTnWORTH, and acknowledged to me that the same was TEXAS, a municipal corporation, that he was duly authorized to perform the same by appropriate Mayor and Council Communication of leCtyf °thell of the City of Fort Worth purposes and consde at on and that he executed the same as the act of the saidy therein expressed and in the capacity therein stated. AND SEAL OF OFFICE this day of GTEN UNDER MY HAND . 2008. 3 NOTARY PUBLIC o ry Public in and for �, a STATE OF TEXAS N �4 - the State of Texas<'� of 1� My com, i`tx��.12 14 2009 Notary's Printed Name STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally Investments,appeared pr Inc..Gene al Partner, Waterview Estates, L.P., a Texas Limited Partnership, known to me to be the person whose name is s fosc hed u o the purposes foregoing regand considerationi roseinstrument therein acknowledged to me that he executed the same p ity therein stated and as the act and Partner. of Waterview Estates, L.P., a expressed, in the capac Texas Limited Partnership, Pars Inyestment, Inc., General IVEN UNDER MY HAND AND D„ , 2008. Notary public in and for the State of Texas Notary's Printed Name of SEAL OF OFFICE this day �"p"`,� LAURA WA(LAND r My Commission Expires July 14, 2008 Exhibit A: NEZ Incentives Exhibit Be Property Description Exhibit Co 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 NEIGHB INCENTIVES Cha ter 378 of the Texas Local Government Code allows m mimes lily tocreate eate a p when a ... murn p y Neighborhood Empowerment Zone (NEZ) of the zone would promote: (1) the creation of affordable housing, including manufactured housing, in the zone;. (2) an increase in economic development in the zone; public safety provided to (3) an increase in the quality of social services, education, or p y p residents of the zone; or (4) the rehabilitation of affordable housing in the zone.p The City, by adopting the following NEZ Tax Abatement hborhoolicy an Empowerment Zonesl promote affordable housing and economic development in Nei glution NEZ incentives will not be granted after the NEZ expires efin aded ditional therms resoand ndesig a ias the NEZ. For each NEZ, the City Council mayapprove permitted by Chapter 378 of the Texas Local Gheeexnirati eent xpiration NEZ shall carry or by City llits full uterm However, any tax abatement awarded before t b pthe City Council. according to its tax abatement agreement approvedY As mandated by state law, the property ert 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 Wort to approve any tax abatement application. II. DEFINITIONS "Abatement" means the full or partial exe ears and an amount f uup o�100% of the ncrease en eligible properties for a period of up to 10 y ro riate county appraisal district) appraisedtax roll of the appropriate value (as reflected on the certified p he execution of the tax abatement agreement. resulting from improvements begun after t Eligible properties must be located in the NEZ. "Base Value„ property, excluding land, as determined by the Tarrant County is the value of the 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 and facility modernization. Capital Investment structures, site improvements, facility expansion, ertal Inpropertyt does NOT include land acquisition costs and/or any existing improvements, or p (such as machinery, equipment, and/or supplies 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"striallsfacilit faciopment lities property,ect that is (ormeets to the construct or rehabilitate commercial/indu requirements to be) zoned commercial, industrial or mixed use as defined by the City of Fort Worth Zoning Ordinance. ich proposes "Community Facility Development Project" is a development such use as defined byhtthe City of or rehabilitate community facilities o construct on property Fort Worth Zoning Ordinance. "Eligible Rehabilitation" includes . only physical improvements to real property. Eligible Rehabilitation does NOT include personal property (such as furniture, appliances, equipment, and/or supplies). "Gross Floor Area,, is measured by taking the outside dimenons tiesorofthe storage, bui d ing at each floor level, except that portion of the basement used only for ithin the building used for off-street parking. "Minimum Building Standards Code" is Article IV of and he Fort Worth City Code adopted pursuant to Texas Local Government Code, Chapter s 54"Minority Business Enterprise (MBE)" and "Women Bon se esEhertrprise a certified ) is a MBE on certified owned business that has receivnority or ed certificate Certification WBE by either the North Texas Regional fication Agency (NTRCA) or the Texas Department of Transportation (TxDot), Highway Division. "Mixed -Use Development Project" is a development project constitute hich 20 proposes for onstrmoreoftth r rehabilitate mixed -use facilities in which residential uses const percent total gross floor area, and office, eating otal and rentertainment, floor arrea and/ sr ont property that is (or meets constitute 10 percent or more of the ail sales and service uses gossZoning the requirements to be) zoned mixed -use as described by the City of Fort Worth Zoni Ordinance. oses to "Multi -family Development Project" is a development s on hmeeprops the requirements to nstruct or rehabilitate multi -family residential living property that is (o be) zoned multi -family or mixed use as defined by the City of Fort Worth Zoning Ordinance. "Project" means a "Residential Project'; "Commercial/Industrial Development Project'; "Community Facility Development Project'; "Mixed -Use Development Project'; or a "Multi -family Development Project." "Reinvestment Zone" is an area designated as suchby the city of Fort Worthhapter i of therdance with the Property Redevelopment and Tax Abatement Act codified Texas Tax Code, or an area designated as an enterprise Gove nment Codeuant to the Texas Enterprise Zone Act, codified in Chapter 2303 of the Texas nl. A. L� RESIDENTIAL YEARS PROPERTIES LOCATED IN A NEZ- FULL ABATEMENT FOR 5 1. For residential property purchased before NEZ designation, a homeowner shall be eligible to apply for a tax abatement by meeting the following: a. Property is owner -occupied and the primary residence of the homeowner prior to the final NEZ designation. Homeowner shall provide proof of ownership by a warranty deed, affidavit of heirship, or a probated will, and shall show proof of primary residence by homestead exemption; and b. Property is rehabilitated after NEZ designation and City Council approval of the tax abatement. after NEZ c. Homeowner must perform Eligible Rehabilitation on the property designation equal to or in excess of 30% of the Base Value of the property; and d. Property is not in a tax -delinquent status when the abatement application is submitted. 2. For residential property purchased after NEZ designation, a homeowner shall be eligible to apply for a tax abatement by meeting the following: a. Property is constructed or rehabilitated after NEZ designation and City Council approval of the tax abatement; residence of the homeowner. b. Property is owner -occupied and is the primary of Homeowner shall provide proof noof owner d shall show ship bproof of y a r primary anty edres den residence by heirship, or a probated will, a homestead exemption;shall be c. For rehabilitated property, Eligible Rehabilitation costs on the propertyThe seller or equal to or in excess of 30% of the Base Value of the property. owner shall provide the o idefnquentlon to statusupport when the abateme abatementlitation costs; is d. Property is not m submitted; and e. Property is in conformance with the City of Fort Worth Zoning Ordinance. 3. For investor owned single familyproperty, 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. MULTI -FAMILY DEVELOPMENT PROJECTS LOCATED IN A NEZ 1 '; 00% Abatement for 5 years. Vj less this section span apply. Adopted 5-15-2007 r up o 5 are Abatements for multi -family development projectsavfith thet Hous ngsDepartmenttfoor City Council approval. The applicant may apply such abatements The applicant must apply for the tax abatement and be approved by City Council . before construction or rehabilitation is started. 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 Housing or 'land Urban shall be affordable (as defined by the U. S. Department opercent an of area Development) to persons with incomes at or below eighty p median income based on ° family size median s ncome'tasshall be set aside defined by the UfSr persons at or below 80 /o of 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 developme pfi�1e ctpresident al after E livingunits designation, OR haveha project must provide at least(5 ) minimum Capital Investment of $200,000; or ust be rehabilitated after NEZ sss (b) For a rehabilitation project, the property roperty shall be at least Such designation. Eligible Rehabilitation costs Eli ible Rehabilitation costs 30% of the Base Value of the property. presidential living units or must come from the rehabilitation of at least five (5) a minimum Capital Investment of $200,000. ears this section snap appw. Abatements for multi -family development projects With theoHous Housing Department for City Council approval. The applicant may apply such abatement. The applicant must apply I for the tax abatement and be approved by City Council before construction or rehabilitation is started. VCity ad orem taxes %IF Years 1 through 5 of the i ax Huaici � ��l IL ��• •-• - Multi -family projects shall of the Tax Abatem°e°nt Ag eementf upon the saltisfaction of for years one through five the following: At least twenty percent (200/() of the Jots units Departmentconstructed Housing rehabilitated and Urban shallbe affordable (as defined by theof 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 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 n after NEZ designation,havea h project must provide at, least five (5) residentialg units minimum Capital Investment of $200,000; or ust be rehabilitated after NEZ b. For a rehabilitation project, the property erty shall a at least designation. Eligible Rehabilitation costs on the Such Eligible Rehabilitation costs 30% of the Base Value of the property. 9 tion of at least five (5) residential living units or must come from the rehabilita a minimum Capital Investment of $200,000. Years 6 throuah 10 of the Tax Abatement Agreement Multi -family projects shall be eligible oftheotr a 1TaxUAbatemenabatetl Ag eement of'ent d pororthe taxes for years six through ten satisfaction of the following: a. f th At least twenty percent (20%) oeU tal uSDepartme constructet off Housing hand Urbanl be affordable (as defined by the Development) to persons with incomes at or below eighty percent (80%) of area median income based on family size median such income units tasshall be set aside defined by the UfSr persons at or below 80 /° of thean 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 afterNEZ unEtss'OR gnathaveha project must provide at lea (5 ) residential minimum Capital Investment of $200,000; or ust be rehabilitated after NEZ 2. For a rehabilitation project, the property shall be at least erty Such designation. Eligible Rehabilitation costs Elp ibpe Rehabilitation costs 30% of the Base Value of the property. g must come from the rehabilitation of atst five (5) residential living units or a min_ i� Capital Investment of $200,000. ro riate, b. Any other terms as City Council of the cityof Fort Worth deems app p including, but not limited to: 1s utilization of Fort Worth companies for an agreed upon percentage of the total costs for construction contracts; 26 utilization of certified minority �osts fomen 1r cons uction contracts; nebusiness enterprises for an agreed upon percentage of the total 3v property inspection; 40 commit to hire an agreed upon percentage of Fort Worth residents 56 commit to hire an agreed upon percentage of Central City residents 6. landscaping; 70 tenant selection plans; and 8. management plans. C, COMMERCIAL, INDUSTRIAL AND PROJECTS LOCATED IN A NEZ COMMUNITY FACILITIES DEVELOPMENT 5 R less this section snau appiv. Abatements for Commercial, Industrial and cil approval IIThe applicant may Projects for up to 5 years are subs Y Coun apply with the Housing Department for such abatement. The applicant must apply for the tax abatement and be approved by City Council before construction or rehabilitation is started. In order to be eligible for a property tax abatement, a newly constructed or rehabilitated commercial/industrial and community facilities development project in a NEZ must satisfy the following: develo ment proje ct a. A commercial, industrial or a community facilities ton must have a minimum Capital Investment of constructed after NEZ designa $75,000; 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. 2. 1 years this section sha�� appiy. Abatements agreements fora Commercial, lae subject'al to City CouCounciluapproval. The Development projects for up to 1 years a applicant may apply with the Economic and Community Development Department for 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 h 5 of the I ax Hpatemei I L r, I S;G� Commercial, Industrial and Community Facilities Development projects shall be eligible for 100% abatement of City ad valorem taxes for the first five years of the Tax Abatement Agreement upon the satisfaction of the following: a. A commercial, industrial or a community facilities development project constructed after NEZ designation must have a minCapital Investment of $75,000; or b. For a rehabilitation project, it must eshall be at east 30% of the Base Value of Rehabilitation costs on the prop y the property, or $75,000, whichever is greater. Adopted 5-15-2007 . 6 Years 6 through 10 of the Tax Abatement A re Commercial, Industrial and Community Facilities Development projects shall be eligible for 1%-100% abatement oCity ad valorem taxes for years of the following:ix through ten of the Tax Abatement Agreementupon a. A commercial, industrial or a community facilities development project constructed after NEZ designation must have a minimum Capital Investment of $75,000 and must meet the requirements of subsection (c) below; or b. For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property, or $75,000, whichever is greater and meet the requirements of subsection (c) below. c. Any other terms as City Council of the City of Fort Worth deems appropriate, including, but not limited to: 1. utilization of Fort Worth companies for an agreed upon percentage of the total costs for construction contracts; 2. utilization of certified minority and women owned business enterprises for an agreed upon percentage of the total costs for construction contracts; 3. commit to hire an agreed upon percentage of Fort Worth residents; 40 commit to hire an agreed upon percentage of Central City residents; and 5. landscaping. p. MIXED -USE DEVELOPMENT PROJECTS LOCATED IN A NEZ 1. if an a licant a ues ror a pax Qua« � ��� - - less this section shall apply. Abatements for Mixed -Use Development Projects for up the Housing Departmentfor are City Council approval. The applicant may app y v such abatement. The applicant must apply for the tax abatement and be approved by City Council before construction or rehabilitation is started. In order to be eligible for a property tax abatement, upon completion, a newly constructed or rehabilitated mixed -use development project in a NEZ must satisfy the following: a. in the pro Residential uses ject constitute 20 percent or more of the total Gross Floor Area of the project; and b. Office, eating and entertainmentof the total Gross Floor Area of the project;. project constitute 10 p and (1) A mixed -use development project constructed after NEZ designation must have a minimum Capital Investment of $200,000; or Adopted 5-15-2007 7 designa (2) For a rehabilitation project, it must be rehabilitated after NEZ of the Base iono Eligible Rehabilitation costs on the property shall e at Value of the property, or $200,000, whichever is greater. year�s this section snap a��w. or to Abatements agreements for a Mixed applevelicant nmayojects applyf withup 1Housang rs are subject to City Council approval. 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 throw h 5 of the Tax Abatement h � Cc�„ Mixed Use Development projects shallobthel�TaxeAbatem0enot 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 entertainment, and/or retail sales and service uses in the of the total Gross Floor Area of the project; project constitute 10 percent or m and NEZ must c. Anew mixed -use development project of $200,OOO;constructedafter forra rehabil to gon project, it have a minimum_► Capital Investment must be rehabilitated after No Z designation. ase Value of ible Rehabilitation e proprty, o� $200,000, sts on the property shall be at least 30 /o of whichever is greater. Years 6 throw h 10 of the Tax Abatement Hai C=� � �� Mixed Use Development projects shall lAbatem0e/nt Agreement upoln the valorem taxes for years six through ten of theTax 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 l sales and service uses in e project constitute 10 percent or more of the tot ion c. Anew mixed -use development project co 0 eor forer NEZ a rehabilitation pproject, 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. the Base Value of the property, or $200,000, property shall be at least 30% of whichever is greater; and d. 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; 20 utilization of certified minority and women owned business enterprises for an agreed upon percentage of the total costs for construction contracts; 30 property inspection; ercenta a of Fort Worth residents 46 commit to hire an agreed upon p 9 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. will deermine If a NEZ is located in a Tax Increment I ng eDntives in (Sect onnllll will bet toffered on a case -by -case basis if the tax abatement to eligible Projects. Eligible Projects must meet all eligibility requirements specified in Section III. ne 2. If a Project is located in the Woodhaven f N or a tax rabatement under this, Policyordhe er to be considered eligible to apply Woodhaven Community Development e submittedrporation and the Woodhaven a letter of support for the Project to Neighborhood Association must h the City of Fort Worth 3. In order to be eligible to apply for a tax abatement, the property owner/developer must: a. Not be delinquent in paying property taxes for any property owned by the owner/developer, except that an owner/developer may enter into a tax abatement agreement with the city of Fort Worth for a specific Project if: 1. the Project meets NEZ tax abatement criteria; and sible for the tax delinquency for the Property; 20 the applicant is not respon and off the taxes under the 3. the applicant enters into an agreement to pay guidelines permitted under state law; and 4. the tax abatement shall provide that the agreement shall take effect after the delinquent taxes are paid in full property owned by the b. Not have any City of Fort Worth liens filed against any prop y applicant property owner/developer. "Liens" include, but are not limited to, weed liens, demolition liens, board-up/open structure liens and paving liens. 4. Projects to be constructed on properly to be purchased under a contract for deed are t not eligible for tax abatemens. Adopted 5-15-2007 5. Once a NEZ property owner of a residential property (including multi -family) in the t forth Sections NEZ satisfies the criteria seter a tltax abatement agreement with the City abatement, a property owner may en the of Fort Worth. The tax abatement ngagreement ns11 in violation automatically f of the City ofFort property subject to the tax abateme Worth's Minimum Building Standards Code and the owner is convicted of such violation. 11, can only 6. A tax abatement granted under the ha criteria maximorth in um term oas Ispecif specified in the be granted once for a property in a NEZ for agreement. If a properly on which taiiaibnn9abated matonce thesold, new ownerwill submits the an tax abatement agreement for the remaining application. 7. A property owner/developer of a multifamily development, commercial, industrial, community facilities and mixed -use development o D must project in the NEZ who desires a tax abatement under Sections 111.B, C a. Satisfy the criteria set forth in Sections III.B, C or D, as applicable, and Sections III.E.1 E.2; and E3. and applicable; and b. File an application with the Housing Department, as c. The property owner must enter into a tax abatement agreement with the City of Fort Worth. In addition to theeoagreem nt shallgautomatically tterms of areement, the erminateabatement if the. agreement shall provide that th of Fort owner receives one conviction of a violation of the Cisub ect to orth'the abatement Building Standards Code regarding the property 1 agreement during the term of the tax abatement agreement; and d. If a property in the NEZ on which tax is being abated is sold, the new owner may enter into a tax abatement agreement on the property for the remaining term. ty Council 8. If the terms of the tax abatement agreementagreements lnr the eventet, the cancellathon, 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. 9. The terms of the agreement shall include each yeaof Fort rthduri right tthe life of review the and verify the applicants financial 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 compliance with the terms of the tax abatement agreement, (3) terminate the agreement if the Project contains or willcontain innCity's sole discretiontetf the nProject terminate the agreement, as determine contains or will contain a liquor store or package store. 10. Upon completion of construction of the facilities, the City halle with the h n annually of the evaluate each project receiving abatement to in p agreement. Any incidents of non-compliance will be reported to the City Council. On or before February 1st of every year during the life of the agreement, any individual or entity receiving a tax abatement from the City of Fort Worth shall Adopted 5-15-2007 10 F IV. perty owner's provide information and of the documentation agreement eemch eent and shalltails the o ertify that the 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 s abated irnthe above dedline the prior yeaabeingsdule result in cancellation of agreement and any and payable. owne 11. If a property in the NEZ on which tax is being abated is sold, for the rthma' new terror may Any enter into a tax abatement agreement on h ch is property n eof permitted in the tax abatement sale, assignment or lease of the property in cancellation of the agreement and s assignment occurredure of any taxes agreement results abated after the date on which an unspecified 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 $1009 multi -family, commercial, industrial, communittylffa i itiess on rnd 3. The application fee for mixed -use development proj the governed erned Project's Cap'talder Seconsllnvestment, with a $200 half of one percent (0.5%) of proposed Application Fee shall not be credited or minimum not to exceed $2,000. The App refunded to any party for any reason. FEE WAIVERS ELIGIBLE RECIPIEIVTSIPROPERTIES 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 to be considered "eligible" to apply for a fee waiver under this Policy, the Woodhaven Community Development Corporation and the Woodhaven for e Neighborhood Project 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. 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 b. must not be delinquent in paying property taxes for any property owned by the owner/developer or applicant; ro ert owned by the applicant c. must not have any City liens filed against any p p y weed liens, demolition property owner/developer, including but not limited to, liens, board-up/open structure liens and paving liens; and cka e store or a sexually d. of a Project that will contain or contains a liquor store, pa g ity Council's determination that the Project is oriented business has received C eligible to apply for fee waivers. g, DEVELOPMENT FEES Once the Application for NEZ Incentives has been of Fort Worth for proved and Projeified bt t n the City, NEZ following fees for services performed by the City are waived for new construction projects or rehabilitationReat on costs: st that expend at feast 30% of the Base Value of the property on Eligible 1. All building permit related 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 application fee 6. Community Facilities Agreement (CFA) a pp 7. Zoning application fee application fee 8. Street and utility easement vacation g. Ordinance Inspection Fees Fees 10. Consent/Encroachment Agreement Application related fees not specified above will be considered for approval by Other development City Council on a case -by -case basis. C. IMPACT FEES 1. Single family and multi -family residential deielopment 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. or a. Automatic 100% waiverater anwastewater impact t of weachcommerc al,i industrial, mixxed uu0se or equivalent to two 6-inch meters for community facility development project. ing a b. If the project requests an impact fee 6-inch meter, then City Council approaiver exceeding $55,000 or val is waiver for larger and/or more than 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. t will City Council shall determine on a case -by -case basis whether a Project tha contain or contains a liquor store or package store is eligible to apply for a fee waiver. 2. t Zonein order If a Project is located in the Woodhaven Neighborhood Empowermen, to be considered "eligible" to apply for release of city liens under this Policy, the Woodhaven Community Development Corporation and the Woodhaven Neighborhood Association must have submitted a letter of support for the Project to the City of Fort Worth —however, once the NEZ Plan is submitted for the Woodhaven NEZ, this will no longer be required. 3. ojon property to be purchased under a contract for deed are Prects to be constructed 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 ad Project, the property owner/developer: a. must submit an application to the City; b. must not be delinquent in paying property taxes for any property owned by the owner/developer; b. must not have been subject to a Building Standards Commission's Order of Demolition where the property was demolished within the last five (5) years; 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 paving liens; and d. of a Project that contains or will contain a liquor store, package store or a sexually oriented business has received City Council's determination the Project is eligible to apply for release of City liens. 5. In order for a Rehabilitation Project to qualify for a release of city liens, the owner/developer must spend Eligible Rehabilitation costs on the Property of at lease 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. B, WEED LIENS The following are eligible to apply for release of weed liens: 1. Single unit owners performing rehabilitation on the properties. Adopted 5-15-2007 13 vacant lots* 2. Builders or developers constructing new homes oncommerc al, industrial; mixed -use, 3. Owners performing rehabilitation on multi Y or community facility prop 4. Developers constructing new multi mily, commercial, industrial, mixe -use or community facility development Projects. C. DEMOLITION LIENS Builders or developers developing or rehabilitating a property for a Project are eligible to a ply for release of demolition liens for up to $30,,0a00. Releases of demolition liens in pp10 excess of $30,000 are subject to City Council app p, BOARD-UPIOPEN STRUCTURE LIENS apply for release of board-up/open structure liens: The following are eligible tot, on their 1. Single unit owners pes constructing newtr s ngle family homes on vacant lots. 2. Builders or developer 3. Owners performing rehabilitation on multi -family, commercial, industrial, mixed -use, or community facility properties. 4. ercial, industrial, mixed -use, or Developers constructing multi -family, comm 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 aropeantrl es ts. 2. Builders or developers constructing n 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. via PDURAL STEPS ROCE A, APPLICATION SUBMISSION 1. The applicant for NEZ incentives under Sections and pay the ppV. must eopr ate te and submit a City of Fort Worth "Application for NZ application fee to the Housing Department, as applicable& cant for incentives under Sections III.C.2 and D.2� must as the a ppeopr ate te and 2. The apple "Application for Tax Abatement and pay p submit a City of Fort Worth application fee to the Economic Development Office. The application fee, review, evaluation and approval will be governed by City of Fort Worth Tax Abatement Policy. Statement for Qualifying Development Projects. B, CERTIFICATIONS FOR APPLICATIONS UNDER SECTIONS Ill. 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 Department will certify the property owner/developer's complete, the Housing p eligibility to receive tax abatements and/or basic incentives based on the criteria s 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 itdevelopment fee waiveesuse �sment projects. c. Development Department: d. Water Department: impact fee waiver e. Other appropriate departments, if applicable. 2. Once Development Department, Water Department, Economic cation from the Housing and/or other appropriate department receive a certifiedapplication pp Department, each department/office shanldfil�eturn iout a Vtorlthet'Housing Department for on of NEZ Incentives for Certified NEZ Incentives Application" record keeping and tracking. c. APPLICATION REVIEW AND EVALUATION FOR APPLICATIONS 1. Property Tax Abatement for Residential Properties and Multi -family Development Projects e years of tax a. For a completed and certified ropllcthenfor no more C'i y Managerthan shall vexe ute a tax abatement, with Council approval, the abatement agreement with the applicants b. For a completed and certified mutamity 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 nest ruction contracts(such as rcommittedltopation, etc.). (c) Percent of c (i) Fort Worth based firms, and (ii) Minority and Women Owned Business Enterprises otiate. (MNVBEs). (d) Other items which the City and the applicantY ne 9 (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 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 th All tax abatements approved by e 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 otheise ct shall be Ified in the due and payable.ment, taxes levied during the construction of the proje 2. Property Tax Abatement for (ommercial, Industrial, Community Facilities, and a. For a completed and certified rtiedl'cthenCty Manager shall vexecute of tax abatement, with Councilapproval, 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 Council's Economic Development Committee. Should the Economic Development Office present the application to the Ecat an o en meet ngnThe C mmittee mayevelomet committee, the Committee will consider the application p Adopted 5-15-2007 VII (a) Approve the application. Staff will then incorporate the application into a tax abatement agreement which willbe sent othe Cityoouncil with the Committee's recommendation to approve the agreement; (b) Request modifications to the application. Economic Development Office staff will discuss the suggested modifications with the applicant and then, if the requested modifications are made, resubmit the modified application to the Committee for consideration; or appeal the Committee's finding (c) Deny the application. The applicant may 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 ordany n y Lax a C2 tom agreement and is under no obligation to approveY tax abatement application or tax abatement agreement. The City of Fort Worth is underno obligation to provide tax abatement in any amount or value to any applicant. c. Effective Date for Approved Agreements All tax abatements approved by the City Council will become effective on January 1 of the year following the year in which a Certificate of Occupancy (CO) is issued for the qualifying development project (unless otherwise specified in the tax abatement agreement). Unless otherwise shall belfied in due andhpayable agreement, taxes levied during the construction of the project 3. Development Fee Waivers uncil a. For certified applications of deve°ent fee will waiversareviewthat theocertifiedrequire appli�ant's approval, the DevelopmentDepartment 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 incentivesw fee waivers that do not require Council review the certified applicant's application b. For certified applications of impact fee waivers that require C � cationpand amake Water Department will review the certified applicant's app 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 � 7 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. VIII. OTHER INCENTIVES A. Plan reviews of proposed development projects in the NEZ will be expedited by the Development Department. B. The City Council may add the following incentives to a NEZ in the Resolution adopting the NEZ: 1. Municipal sales tax refund 2. Homebuyers assistance 3. Gap financing 4. Land assembly 5. Conveyance of tax foreclosure properties 6. Infrastructure improvements 7. Support for Low Income Housing Tax Credit (LIHTC) applications 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 ity in the NEZ the Project is located; or organizations registered with the c 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 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. ents are Under the NEZ Tax Abatement Policy and Basic Incentives, City Departm authorized to waive impact and development fees for uag lified 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 quacation 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 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 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. Adopted S-IS-2007 Exhibit B Property Description 5605 Grenada Drive; Lot 10; 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.