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HomeMy WebLinkAboutContract 36968CITY SECRETARY CONTRACT NO. TAX ABA"1'L+'Ivlr:iv 1 AIYt(L�iv1L',lr � r Vl\ 1 l�vi ..a. � xnryruunuunnn vMPOWERMF.NT ZO 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 true and correct and constitute the and Owner hereby agree that the following statements are 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 &15726). 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�08 IN 0 *ter and cri la governing tax ll. The NEZ Incentives contains entered intoappropriate b gtheeCitysas contemplated by Chapter abatement agreements to be 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 Exhi_ bit`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 in accorance with the consistent with encouraging developmoennt fiance withof the ethe NEZ Incentives, the purposes for its creation and a p 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 n furnished in the manner prescribed by the Code copy of this Agreement, has bee 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 follon of the terms and conditions set forth herein, do hereby contract, covenant and gree as ow 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 $80,000,00, as determined by an independent appraiser (collectively, the "Required Improvements"). Owner shall provide a survey of the completed home showing Required Improvements before the home is sold and a copy of the independent appraisal after the sale. The parties agree that the final survey and independent appraisal shall be a part of this Agreement and shall be labeled Exhibit E. Minor variations, and more substantial variations if approved in writing by both of the parties to this Agreement, in the Required Improvements from the description provided in the Application for Tax Abatement shall not constitute an Event of Default, as defined in Section 4.1, provided that the conditions in the first sentence of this Section 1.1 are met and the Required Improvements are used for the purposes and in the manner described in Exhibit "D". 1.2. Completion Date of Owner covenants to substantially complete construction of all of the Required Improvements within one year from the issuance and receipt of the building permit, unless delayed because of force majeure, in which case the two years shall be extended speci of this by the number of days comprising the an event force aOwner's �eason reasonable control, Agreement, force majeure shall mean 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, iots and material or labor restrictions and shortages as strikes, national disasters, wars, r determined by the City of Fort Worth iwhich shall not be n its sole discretion, unreasonably withheld, but shall not include construction delays caused due to purely financial matters, such as, without limitation, delays in the obtaining of adequate financing. 1.3. Use of Premises. Owner covenants that the Required Improvements shall be constructed and the Premises shall be sold so that it is continuously used as the primary residence of the Home Buyer in accordance with the description of the Project set forth in the Exhibit 'D". In addition, Owner covenants that throughout the Termthe Required , for the purposes set forth in Improvements shall be operated and maintain waith the general purposes of encouraginlg Agreement and in a manner that is con development or redevelopment of the Zone. 2. ABATEMENT AMOUNTS TERMS AND CONDITIONS. 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. 2.1. Amount of Abatement. The actual amount of the Abatement granted under this Agreement shall be based upon the increase in value of the Premises and the Required Improvements over their values on January 1, 2007, the year in which this Agreement was entered into: One Hundred percent (100%) of the increase in value from the construction of the Required Improvements. If the square footage requirement and the appraised value of the Required Improvements are less than as provided in Section 1.1 of this Agreement, Owner shall not be eligible to receive any Abatement under this Agreement. 2.2. Increase in Value. The abatement shall apply only totaxes on the increase in value of the Premises the due to construction of the Required Improvements and shall not apply to taxes on land. 2,3, Term of Abatement. The term of the Abatement ("Term") shall begin on January 1 of the year following the calendar year in which a Required Improvement is sold to a Home Buyer to be used as its primary residence ("Beginning Date") and, unless sooner terminated as herein provided, shall end on December 31 immediately preceding the fifth (5`h) anniversary of the Beginning Date. Upon the sale to a Home Buyer, City shall certify that the Required Improvements have been completed in satisfaction of the terms of the agreement. However, the Compliance Auditing Term will begin on the date this agreement is executed and will end on the expiration fate of the Term. 2.4. Protests Uver Appraisaini u• h,JVJJ AAA �..r.,. Owner shall have the right to protest and contest any or all appraisals or assessments of the Premises and/or improvements thereon. 2.5. Abatement Application Fee. The City acknowledges receipt from Owner of the required Abatement application fee of $25.00 per single family house. The application fee shall not be credited or refunded to any party for any reason. 3. REC:)RD ;1 CERTIFICATION AND EVALUATIO 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 ermsPremiss deconditionsl of this Agreement.uate the Required I Owner shall coope ate compliance with the t fully with the City during any such inspection and/or evaluation. 3.2. Certification. Owner shall certify annually to the City that it is in compliance with each applicable term of this agreement. The City shall have the right to audit at the City's expense the Required improvement with respects to the specifications listed in Exhibit D. Owner must provide documentation that Owner is using the Required improvements as its primary residence (collectively, the "Records") at any time during the Compliance Auditing Term in order to determine compliance with this Agreement. Owner shall make all applicable Records available to the City on the Prem shall ottherwise cooperate fully with the Citanother location in the cy reasonable advance notice by the City and during any audit. 3.3. Provision of Information. On or before February 1 following the end of every year during the Compliance Ashall provide information an uditing Term and if requested by th a dressesOOwnwnerer's compliance with each oft e documentation for the previous year that terms and conditions of this Agreement for that calendar year. Failure to provide all information within the control of Owner required by this Section 3.3 shall constitute an Event of Default, as defined in Section 4.1. 3.4. Determination of Compliance. On or before August 1 of each year during the Compliance Auditing Term, the City shall make a decision and rule on the actual annual percentage of Abatement available to Owner for the following year of the Term and shall notify Owner of such decision and ruling. The actual percentage of the Abatement granted for a given year of the Term is therefore based upon Owner's compliance with the terms and conditions of this Agreement during the previous year of the Compliance Auditing Term. 4. EVENTS OF DEFAULT. 4.1. Defined. Unless otherwise specified herein, Owner shall be in default of this Agreement Owner fails to construct the Required Improvements as defined in Section 1.1.; (ii) ad valorem real property taxes with respect to the Premises or the Project, or its ad valorem taxes with respect to the tangible personal property located on the Premises, become delinquent and Owner does not timely and properly follow the legal procedures for protest and/or contest of any such ad valorem real property or tangible personal property taxes or (iii) HOME BUYER DOES NOT USE THE PREMISES AS PRIMARY RESIDENCE ONCE THE ABATEMEBEGINS, (iv) HOME BUYER NOT COMPLY WITH CHAPTER ANND APPENDIX B OF THE CODEOES OF ORDINANCE OF THE CITY OF FORT WORTH (collectively, each an "Event of Default"). 4.2. Notice to Cure. Subject to Section 5, if the City determines that an Event of Default has occurred, the City shall provide a written notice to Owner that describes the nature of the Event of Default. Owner shall have ninety (90) calendar days from the date of receipt of this written notice to fully cure or have cured the Event of Default. If Owner reasonably believes that Owner will require additional time to cure the Event of Default, Owner shall promptly notify the City in writing, in which case (i) after advising the City Council in an open meeting of Owner's efforts and intent to cure, Owner shall have one hundred eighty (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 advisingeCtfany,as may be offered by he Council in an open meeting of tCity efforts and intent to cure, such additional time, Council in its sole discretion. 11 4.3. Termination for If an Event of Default which under Section 4.2 the Citysshallbhavecthedr ght to the time frame specifically allowed terminate this Agreement immediately. Owner acknowledges and agrees that an uncured Event of Default will (i) harm the City's economic development and redevelopment efforts on the Premises and in the vicinity of the Premises; (ii) require unplanned and expensive additional administrative oversight and involvement by the City, and (ill otherwise harm the City, and Owner agrees that the amounts of actual damages there from are speculative in nature and will be difficult or impossible to ascertain. Therefore, ination of this Agreement for any Event of Default, Owner shall not be eligible upon termay the for the Abatement for the remaining Term accordance Onwith this er shallAgreement�for liquidated hdyear damages, all taxes that were abated 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 e no longer appropriate or feasible, Premises or the anticipated Required Improvements ar or that a higher or better use is preferable, the City and Owner may terminate this Areement in a written format that is signed by both parties. In thi gs event, (1) if the Term has commenced, the Term shall expire as of the effective date of the termination of this Agreement; (ii) there shall be no recapture of any taxes previously abated; and (iii) neither party shall have any further rights or obligations hereunder. 4.5. Sexually oriented Business &Liquor Stores or Package Sto aOwner understands and agrees the City has the right to . terminate this ually oriented ex agreement if the ProOwner t contains understands andlagrreesln a thatsthe City has the right to terminate this b. Owne areement as determined in City's sole discretion if the Project contains or will contain a g 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 Abatement cannot be s mortgagee which City Council hereby agrees to, thi 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. 6. 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 wi ethe written nder this agreement, of City Council, Owner shall have no further duty or obligation IN OFAS C17 THE FAILURE OF OWNER TO SEND THE CITY NOTIFICATION OF THE SALE OF THE ASSIGNMENT OF THIS AGREEMENT REQUIRED IMPROVEMENTS THE NEW OWNER WITHIN 30 DAYS OF THE TRANSFER OF OWNERSHIP OF THE REQUIRED IMPROVEMENTS SHALL RESULT IN THE EXECUTED ASSIGNMENT MUST BE THIS AGREEMENT. THE NOTICE AND 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 Housing Department Attn: Jerome Walker 1000 Throckmorton Fort Worth, TX 76102 Owner: Waterview Estates, L.P. Pars Investment, Inc., General Partner 3901 Airport Freeway, Suite 200 Bedford, TX 76021 7, MISCELLANEOUS. 7.1. Bonds. The Required Improvements will not be financed by tax increment bonds. This Agreement is subject to rights of holders of outstanding bonds of the City. 7.2. Conflicts of Interest. Neither the Premises nor any of the Required Improvements covered by this Agreement are owned or leased by any member of the City Council, any member of the City Planning or Zoning Commission or any member of the governing body of any taxing units in the Zone. 7.3. Conflicts Between Documents. In the event of any conflict between the City's zoning ordinances, or other City ordinances or regulations, and this Agreement, such ordinances or regulations shall control. In the event of any conflict between the body of this Agreement and Exhibit " D", the body of this Agreement shall control. 7.4. Future Application. Art poion or all of the Premises addvaloremtaxes a s a result of existingelawlbor for complete or partial exemption from future legislation. This Agreement shall n t beconstrued strued as evidence that such and/ exemptions do not apply to the Premises Required 7.5. City Council Authorization. This Agreement was authorized by the City Council through approval of Mayor and Council Communication No.C-22333 on November 2L 2007, which, among other things, authorized the City Manager to execute this Agreement on behalf of the City. 7.6. Estoppel Certificate. Any party hereto may request an estoppel certificate from another party hereto so long as the certificate is requested in connection with a bona fide business purpose. The certificate, which if requested will be addressed to the Owner, shall include, but not necessarily be limited to, statements that this Agreement is in full force and effect of Default and without default (or if an Event of Default exists, the nature of the Event curative action taken and/or necessary of the Abatemect a ,enti n effect,remaining term of this and such other Agreement, the levels and remaining term matters reasonably requested by the party or parties to receive the certificates. 7.7. Owner Standing. Owner shall be deemed a proper and necessary party in any litigation questioning or challenging the validity of thisactions Agreement authorizingany of the this Agreementying and Ownershallesbe resolutions or City Council 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 an Texas and applicable ordinances, rules, n the State District p licies of the City. Venue for y Court of Tarrant County, Texas. action under this Agreement shall lie This Agreement is performable in Tarrant County, Texas. 7.9. Recordation. A certified copy of this Agreement in recordable form shall be recorded in the Deed Records of Tarrant County, Texas. 7.10. Severability. ille al or unenforceable, If any provision of this Agreementremaining provisions hall not in any way the validity, legality and enforceability of the remaining be affected or impaired. 7.11. Headings Not Controlling. Headings and titles used in this Agreement are for reference purposes only and shall not be deemed a part of this Agreement. 7.12. Entirety of Agreement. This Agreement, including any exhibits attached hereto and any documents incorporated herein by reference, contains the entire understanding and agreement signs and successors in i between the City and Owner, their asnterest, as to the matters contained herein. Any prior or contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict with any provision of this Agreement. This Agreement shall not be amended unless executed in writing by both parties and approved by the City Council. This Agreement may be executed in multiple counterparts, each of which shall be considered an original, but all of which shall constitute one instrument. EXECUTED this 2`/ day of 2008, by the City of Fort Worth, Texas. , 2008, by Waterview Estates, EXECUTED this day of L.P., Pars Investment, Inc., General Partner. CITY OF FORT WORTH: By. s .w P�-►�Ac�� ' `en Assistant City Manager A"i'1'EST: By: APPROVED ^.:� TO FORM AND LEGALITY: Charlene Sanders Assistant City Attorney Mehrdad Moayedi President 'v5qIII7I� L� J E 4 l5q� p)(�q� .. 7V STATE OF TEXAS § COUNTY OF TARRANT § 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. UNDER MY HAND AND SEAL OF OFFICE this day of , 2008. N tary Public in and for the State of Texas Notary's Printed Name N OTAW PUBLIC STA T E OF TEXANS My Comm. Exp.12-14-2009 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Mehrdad Moayed1 of Limited Partnership, Pars Investments, Inc., General Partner, Waterview Estates, L.P., a Texas L known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed, in the capacity therein stated and as the act and deed of Waterview Estates, L.P., a Texas Limited Partnership, Pars Investment, Inc., General Partner. GIVEN UNDER MY HAND AND Notary Public in and for the State of Texas Notary's Printed Name of SE AL OF OFFICE this day �`AFY �<\C LAURA WAYLAND \ My Commission Expires 9 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 he Final Survey and Independent Appraisal 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 zones or (4) the rehabilitation of affordable housing in the zone." llowing NEZ Tax Abatement Policy and Basic Incentives, will The City, by adopting the fo promote affordable housing and economic development in Neighborhood Empowerment Zones. NEZ incentives will not be granted after the NEZ expires as defined in the resolution designating. additional terms and incentives as the NEZ. For each NEZ, the City Council may approve Code or by City Council resolution. permitted by Chapter 378 of the Texas Local Government n of a NEZ shall carry its full term However, any tax abatement awarded before the expiratio 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 amounpopriate t of up to 100% of the increase in appraised value (as reflected on the begun certified a roll of the on ao p the taxcabatementounty aagreelmen district)isal resulting from improvements beg 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 " iits, facility expansion, and facility modernization. Capital Investment structures, stemprovemen 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 which proposes to construct or rehabilitate commercial/industrial facilities on property that is (or meets the requirements to be) zoned commercial, industrial or mixed use as defined by the City of Fort Worth Zoning Ordinance. truct "Community Facility Development Project" is a development project which proposes to cons or rehabilitate community facilities on property that allows such use as defined by the City of Fort Worth Zoning Ordinance. "Eligible Rehabilitation" includes only physical improvements to real propr yequ equip, Rehabilitation does NOT include personal property (such as furniture, appliances, and/or supplies). "Gross Floor Area" is measured by taking the outside dimensions of the building at each floor level, except that portion of the basement used only for utilities or storage, and any areas within the building used for off-street parking. "Minimum Building Standards Code" is Article IV of the Fort Worth City Code adopted pursuant to Texas Local Government Code, Chapters 54 and 214. "Minority Business €nterprise (MBE)" and "Women Business Enterprise (WBE)" is a minority or received certification as either a certified MBE or certified woman owned business that has WBE by either the North Texas Regional Certification Agency (NTRCA) or the Texas Department of Transportation (TxDot), Highway Division. "Mixed -Use Development Project" is a development project which proposes to construct or rehabilitate mixed -use facilities in which residential uses constitute 20 percent or more of the total gross floor area, and office, eating and entertainment, and/or retail sales and service uses constitute 10 percent or more of the total gross floor area and is on property that is (or meets the requirements to be) zoned mixed -use as described by the City of Fort Worth Zoning Ordinance. "Multi -family Development Project" is a development project which proposes to construct or the requirements to rehabilitate multi -family residential living units on property that is (or meets be) zoned multi -family or mixed use as defined by the City of Fort Worth Zoning Ordinance. "Project" means a "Residential Project'"Community Facility Development " Project'; "Commercial/Industrial Development Project'; "Mixed -Use Development Project'; or a "Reinvestment Zone" is an area designated as such by the City of Fort Worth in accordance. with the Property Redevelopment and Tax Abatement Act codified in Chapter 312 of the Texas Tax Code, or an area designated as an enterprise zone pursuant to the Texas Enterprise Zone Act, codified in Chapter 2303 of the Texas Government Code. Adopted S-IS-2007 2 III. MUNICIPAL PROPERTY TAX ABATEMENTS A. RESIDENTIAL PROPERTIES LOCATED IN A NEZ- FULL ABATEMENT FOR 5 YEARS 1. For residential property purchased before NEZ designation, a homeowner shall be eligible to apply for a tax abatement by meeting the following. a. Property is owner -occupied and the primary residence of the homeowner prior to the final NEZ designation. Homeowner shall provide proof of ownership by a warranty deed, affidavit of heirship, or a probated will, and shall show proof of primary residence by homestead exemption; and b. Property is rehabilitated after NEZ designation and City Council approval of the tax abatement. c. Homeowner must perform Eligible Rehabilitation on the property after NEZ designation equal to or in excess of 30% of the Base Value of the property; and d. Property is not in a tax -delinquent status when the abatement application is submitted. 2. For residential property purchased after NEZ designation, a homeowner shall be eligible to apply for a tax abatement by meeting the following: a. Property is constructed or rehabilitated after NEZ designation and City Council approval of the tax abatement; b. Property is owner -occupied and is the primary residence of the homeowner. Homeowner shall provide proof of ownership by a warranty deed, affidavit of heirship, or a probated will, and shall show proof of primary residence by homestead exemption; c. For rehabilitated property, Eligible Rehabilitation costs on the property shall be equal to or in excess of 30% of the Base Value of the property. The seller or owner shall provide the City information to support rehabilitation costs; d. Property is not in a tax -delinquent status when the abatement application is submitted; and e. Property is in conformance with the City of Fort Worth Zoning Ordinance. 3. For investor owned single family property, an investor shall be eligible to apply for a tax abatement by meeting the following: a. Property is constructed or rehabilitated after NEZ designation and City Council approval of the tax abatement; b. ble Rehabilitation costs on the property shall be For rehabilitated property, Eligi equal to or in excess of 30% of the Base Value of the property; c. Property is not in a tax -delinquent status when the abatement application is submitted; and d. the City of Fort Worth Zoning Ordinance. Property is in conformance with B. MULTI -FAMILY DEVELOPMENT PROJECTS LOCATED IN A NEZ 1. 100%Abatement for 5 years. If an applicant applies for a less this section shall apply. Adopted 5-15-2007 3 o 5 Abatements for multi -family development projects for the t Hous a s are subject trtment fto City Council approval. The applicant may apply with such abatements The applicant must apply for the tax abatement and be approved by City Council before construction or rehabilitation is started. In order to be eligible for a property tax abatement upon completion, a newly constructed or rehabilitated multi -family development project in a NEZ must satisfy the following: At least twenty percent (20%) of the total units constructed or rehabilitated shall be affordable (as defined by the U. S. Department of Housing and Urban Development) to persons with incomes at or below eighty percent (80%) of area median income based on family size and such units shall be set aside for persons at or below 80% of the median income if s define ld by the may waive S. Department of Housing and Urban Development y or reduce the 20% affordability requirement on a case -by -case basis; and (a) For a multi -family development project constructed after NEZ designation, the project must provide at least five (5) residential living units OR have a minimum Capital Investment of $200,000; or (b) For a rehabilitation project, the property must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property. Such Eligible Rehabilitation costs must come from the rehabilitation of at least five (5) residential living units or a minimum Capital Investment of $200,0000 years this section snail appw. Abatements for multi -family development projects for up to 10 years are subject to City Council approval. The applicant may apply with the Housing Department for such abatement. The applicant must apply for the tax abatement and be approved by City Council before construction or rehabilitation is started. Years 1 tnrou n o or a it:� I CIA • • • --• • . _ . Multi -family projects shall be eligible for 100% abatement of City ad valorem taxes for years one through five of the Tax Abatement Agreement upon the satisfaction of the following: At least twenty percent (200,16) of the total units atmo Housing and Urban constructed rehabilitated 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 as defined by the U.S. Department of Housing and Urban Development. City Council may waive or reduce the 20% affordability requirement on a case -by -case basis; and a. For a multi -family development project constructed after NEZ designation, the project must provide at, least five (5) residential living units OR have a minimum Capital Investment of $200,000; or ust be rehabilitated after NEZ b. For a rehabilitation project, the property designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property. Such Eligible Rehabilitation costs must come from the rehabilitation of at least five (5) residential living units or a minimum Capital Investment of $200,000. Year; 6 through 10 of the Tax Abatement Agreement Multi -family projects shall be eligible for a 1 %-100% abatement of City ad valorem taxes for years six through ten of the Tax Abatement Agreement upon the satisfaction of the following: a. At least twenty percent (20%) of the total units constructed osst uc ed or rehabilitated e aHousing hand Urban be affordable (as defined by the U. S. Department Development) to persons with incomes at or below eighty percent (80%) of area median income based on family size and such units shall be set aside for 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 provide at least five (5) residential living units OR have a minimum Capital Investment of $200,000; or 2. For a rehabilitation project, the property must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property. Such Eligible Rehabilitation costs must come from the rehabilitation of at feast five (5) residential living units or a minimum Capital Investment of $200,000 b. Any other terms as City Council of the City of Fort Worth deems appropriate, including, but not limited to: 1. utilization of Fort Worth companies for an agreed upon percentage of the total costs for construction contracts; 2w utilization of certified minority and women owned business enterprises for an agreed upon percentage of the total costs for construction contracts; 3w property inspection; 4. commit to hire an agreed upon percentage of Fort Worth residents 50 commit to hire an agreed upon percentage of Central City residents 6. landscaping; 70 tenant selection plans; and 8w management plans. C. COMMERCIAL, INDUSTRIAL AND COMMUNITY FACILITIES DEVELOPMENT PROJECTS LOCATED IN A NEZ 5 Adopted 5-t5-2007 . 1. less this section shall apply. Abatements for Commercial, Industrial and Community Facilities Development Projects for up to 5 years are subjectto City Council approval, The applicant may apply with the Housing Department for The applicant must apply for the tax abatement and be approved by City Council before construction or rehabilitation is started. In order to be eligible for a property tax abatement, a newly constructed or rehabilitated commercial/industrial and community facilities development project in a NEZ must satisfy the following: a. A commercial, industrial or a community facilities development project constructed after NEZ designation must have a minimum Capital Investment of $75,000; or b. For a rehabilitation project, t�te it must ube eshall be at east 30% od after NEZ f the Base nVal ue of Rehabilitation costs on property the property, or $75,000, whichever is greater. 2. years this section shall appiv. Abatements agreements for a Commercial, Industrial and Community Facilities Development projects for up Economic to 10 ars are and Commuect to nity y Development lDepartment for applicant may apply with such abatement. The applicant must apply for the tax abatement and be approved by City Council before construction or rehabilitation is started. Years 1 throu n 5 or the I ax hudJcJ 1 1U1 IL - ��• • •-• - 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 minimum Capital Investment of $75,000; or b. For a rehabilitation project, ft muteshall be at eastafter 30% of the Base Value bof Rehabilitation costs on property the property, or $75,000, whichever is greater. Years 6 through 10 of the Tax Abatement Agreement Commercial, Industrial and Community Facilities Development projects shall be eligible for 1%-100% abatement of City ad valorem taxes for years six through ten of the Tax Abatement Agreement upon the satisfaction of the following: a. A commercial, industrial or a community facilities development project constructed after NEZ designation must have a minimum Capital Investment of $75,000 and must meet the requirements of subsection (c) below ; or b. For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property, or $75,000, whichever is greater and meet the requirements of subsection (c) below. c. Any other terms as City Council of the City of Fort Worth deems appropriate, including, but not limited to: 1. 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 commit to hire an agreed upon percentage of Fort Worth residents; 4. commit to hire an agreed upon percentage of Central City residents; and 5. landscaping. D. MIXED -USE DEVELOPMENT PROJECTS LOCATED IN A NEZ 1. 1 If an applicant appnes ror a less this section shall apply. Abatements for Mixed -Use Development Project City Council approval. The applicant may apply such abatement. The applicant must apply for the tax abatement before construction or rehabilitation is started. for a n s for up to 5 years are subject to with the Housing Department for and be approved by City Council In order to be eligibi{aced mixed use development projects a NEZ midst satisfy the constructed or rehab 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, prro e sales service of the total Gross Floor Area of the project;. project constitut 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 d a designa (2) For a rehabilitation project, it must be rehabiitattee at er NEZ of the Base Eligible Rehabilitation costs on the property shall Value of the property, or $200,000, whichever is greater. 2. 1 %- years this section snail app�v. to Abatements agreements for a Mixed Use Devpeplopment projecti for ovriithpthe 1Hous Housing are subject to City Council approval. The applicant may apply 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 y Council. Years 1 throu h b of the lax Hgaieme� �� � ��� Mixed Use Development projectsyearsca Iofthe llTax eAbatement Agreement upon the valorem taxes for the first five y satisfaction of the following: a. Residential uses in the project constitute 20 percent or more of the total Gross Floor Area of the project; and b. Office, eating and entertainment, r rend/or retail sales and of the total Gross Floor Area of the project; ce uses in the project constitute 10 percent and NEZ c. Anew mixed -use development project of $200,000;eor forafter a rehabilitation designation have a min_ Capital Investment must be rehabilitated after o00 of the Base ValZ designation, ue of ible Rehabilitation e proprty, 0�$200,000, sts on the property shall be at least 3 whichever is greater. Mixed Use Development projects shtelnbof thelTax Abatem0e/nt Agr ement upolnythe valorem taxes for years six through satisfaction of the following: a. Residential uses in the project constitute 20 percent or more of the total Gross Floor Area of the project; an b. Office, eating and entertainment, and/or retail sales and service uses in the project constitute 10 percent or more of the total Gross Floor Area of the project; c. Anew mixed -use development project constructed forer NEZ a rehabilitation designation must it have a minimum Capital Investment of $ must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the Adopted 5-15-2007 8 E. property shall be at least 30% of the Base Value of the property, or $200,000, pro p whichever is greater; and d. Any other terms as City Council of the City of Fort Worth deems appropriate, including, but not limited to: of the 1. utilization of Fort Worth companies for an agreed upon percentage total costs for construction contracts; 2. utilization of certified minority th total costs foromen d business construction contracts; for an agreed upon percentage of 3w property inspection; 4, commit to hire an agreed upon percentage of Fort Worth residents 58 commit to hire an agreed upon percentage of Central City residents 6. landscaping; 79 tenant selection plans; and 8. management plans. ABATEMENT GUIDELINES 1. If a NEZ is located in a Tax Increment Fini n% Dltives in city Sect SectionCouncil willwill beoffereddetermine on a case -by -case basis if the tax abatement to eligible Projects. Eligible Projects must meet all eligibility requirements specified in Section III. 2. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order 1 for a tax abatement under this Policy, the to be considered "eligible" to apply nd the Woodhaven Woodhaven Community Developmentporation a e submittedCora fetter 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 a may enter n own abatement agreement with the city of Fort Worth foer/developr aspec specific Project if� a tax 1. the Project meets NEZ tax abatement criteria; and 2. the applicant is not responsible for the tax delinquency for the Property; 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 theIlagreement shall take effect after the delinquent taxes are paid in ainst y erty owned by the b. Not have any City of ° Worth liens filed include, but are pot limited to, weed applicant property owner/developer. 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 �. owner of.a residential property (including multi -family) in the Once a NEZ property NEZ satisfies the criteria set forth in Sections III.A, E.1. and E.2. and applies for an abatement, a property owner may enter into a tax abatement agreement with the City of Fort Worth. The tax abatement agreement is in v o ation lly terminate of the City off the Fort property subject to the tax abatemen such g North's Minimum Building Standards Code and the owner is convicted of violation. A tax abatement granted under thecriteria a maximum term reofspecified SectionIlia (smy the be granted once for a property in a NEZ for agreement. If a property on which tax ia,beinge b�ateodis ce thed,the city new owner submits tan tax abatement agreement for the rem g application. 7. A property owner/developer of a multvelo Ily evproject in the NEZ who 'desires aa community facilities and mixed -use de p tax abatement under Sections III.B, C or D must: a. satisfy the criteria set forth in Sections III.B, C or D, as applicable, and Sections III.E.1 E.2; and E3. and applicable; and b. File an application with the Housing Department, as c. The property owner must enter into other rtte abatement agreementmthe tax aent with batement 'ment Fort Worth. In addition to the othinate if agreement shall provide that the agreement g iolationtof thle City of Fortly term Worth's Minimum owner receives one conviction of subject to the abatement Building Standards Code regarding the property J agreement during the term of the tax abatement agreement; and d. If a property in the NEZ owhich agreement on the property's sold, the new for the remaining term* may enter into a tax abatement 8. If the terms of the tax abatement aga agreement ,In the event City ancellathon, the right to cancel or amend the abatementg 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 statementstyn each yeaof Fort rthduri right tthe life of review the and verify the applicant's financial iven year, (2) conduct an on site agreement prior to granting a tax abatement in any g inspection of the project in each year during the life of the abatementeto verify the 3 compliance with the terms containsthe ortax will abatement a sexually agreement, oriented business (4 agreement if the Prole terminate the agreement, as determined in City 's sole discretion) if the Project contains or will contain a liquor store or package store. l no less an annually 10. Upon completion of construction of thefacilities, to assure complianlce with thehterms of the evaluate each project receiving abate agreement. Any incidents of non-compliance will be reported to the City Council. any shall On or before February 1st of every year during the life of the agreement, individual or entity receiving a tax abatement from the City of Fort Worth Adopted 5-15-2007 10 and documentation which details the property owner's provide information compliance with the terms of the revterm of theective nagaeementl Fai ulre to that owner is in compliance with each applicable this information and to provide the required certification by the above deadline shall result in cancellation of agreement and any taxes abated in the prior year being due and payable. may 11. If a property in the NEZ on which tax is being abated is sold, for the rthma n w owneterror Any enter into a tax abatement agreement on the property in the sale, assignment or lease of the property lch is not p and ttrec capture of ab y taxes aatement agreement results in cancellation oft agreement abated after the date on which an unspecified assignment occurred. p, 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 facilities and Sectionser 111.1301 mixed-use development projects g ernPro ect s Capitallne st ent5 with h a $200 half of one percent (0.5%) of the proposed Fee shall not be credited or minimum not to exceed $21000. The Application refunded to any party for any reason. IV. n FEE WAIVERS ELIGIBLE RECIPIENTS/PROPERTIES City Council shall determine on a case -by -case basis whegther a Proj i ctfor a fete contain or contains a liquor store or package store is eli ible to app y waiver. If a Project is located in the Woodhaven Neighborhood Empowerment ZoW , in order to be considered eligible to apply for a fee waiver under this policy, the av Community Development Corporation aletter of supportf oaven the Project the City of Fort Association must have submitted Worth —however, once the NEZ Plan is submitted for the Woodhaven NEZ, this will no longer be required. 1 2 3 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 by the applicant c. must not have any City liens filed against any property weed liens, demolition. property owner/developer, including but not limited and liens, board-up/open structure liens and paving liens; anackage store or a sexually d. of a Project that will contain or contains a liquor store, p oriented business has received City Council Is determination that the Project is eligible to apply for fee waivers. g, DEVELOPMENT FEES Once the Application for NEZ Incentives has been approved Worth forProjects bhn he oFortNEZ following fees for services performed by the City cts are waived for new construction projects or rehabilitation aReitatio Rehabilitation costs:at expend at least 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) 7. Zoning application fee cation fee 8. Street and utility easement vacation application g. Ordinance Inspection Fees Fees 10. Consent/Encroachment Agreement Application development related fees not specified above will be considered for approval by Other p 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 a fde chtcommerc al,ci dusty ap, tmixxed-,0use or equivalent to two 6-inch meters fo community facility development project. waiver exceeding $55,000 or requesting a b. If the project requests an impact fee inch meter, then City Council approval is waiver for larger and/or more than Adopted 5-15-2007 12 quest the additional amount of impact fee waiver required. Applicant may re through the Housing Department. V, RELEASE OF CITY LIENS ELIGIBLE RECIPIENTS/PROPERTIES 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. ne, in If a Project is located in the Woodhaven snPolc order y, the to be considered eligible to apply for releae of city liens under this Woodhaven Community oD mus phave submitted Corporation and a letterthe Woodhavof support fen oethe Project to Neighborhood Associati te the NEZ Plan is submitted for the Woodhaven he City of Fort Worth —however, onc NEZ, this will no longer be required. Projects to be constructed on property to be purchased under a contract for deed are not eligible for any release of City Liens. 1 2. 3. n owner/developer to be eligible to apply for a release of city In order for a property D., and E. for at Project, the property liens contained in Section V.B., C•, owner/developer: a, must submit an application to the City; property owned by the b. must not be delinquent in paying property taxes for any prop y owner/developer; b. must not have been subject to a Builol shedding twith ntheClast five (5) ye O der of Demolition where the property was dem c. must not have any City of Fort Worth liens rfiled gainst any s,other proot ty t d owned by the applicant property owner/develop weed liens, demolition liens, board-up/open structure lienspackage sore orliens; and lly do of a Project that contains or will contain a liquor store, p g 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 thabilitation o qualify �osts on the Pror a release f perty of at lease owner/developer must spend Eligible Re 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. 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 C. D. E. VI. A. f� 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. ulti-family, commercial, industrial, mixed -use or Developers constructing new m community facility development projects. DEMOLITION LIENS Builders or developers developing or rehabilitating a property for a Project are eligible to apply for release of demolition liens for up to $30,000. Releases of demolition liens in excess of $30,000 are subject to City Council approval. BOARD-UPIOPEN STRUCTURE LENS 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 tsingle'Ifa family homc commercial, industrial , vacant lots. use, 3. Owners performing rehabilitation on mu Y or community facility properties. 4. Developers constructing multi -family, commercial, industrial, mixed -use, or community facility projects. PAVING LIENS The following are eligible to apply for release of paving liens: 1. Single unit owners performing rehabilitation on their properties. 2. Builders or developers constructing new homes on vacant lots. 3. Owners performing rehabilitation on mufti -family, commercial, industrial, mixed -use; or community facility properties. 4. Developers constructing multi -family, commercial, industrial, mixed -use, or community facility projects. PROCEDURAL STEPS APPLICATION SUBMISSION 1. The applicant for NEZ incentives under Sections III. IV., and V. must complete and submit a City of Fort Worth Application for NEZ Incentives" and pay the appropriate application fee to the Housing Department, as applicable. 2. The applicant for incentives under Sections III.C.2 and D.2 must also complete and submit a City of Fort Worth Application for Tax Abatement" and pay the appropriate application fee to the Economic Development Office. The application fee, review, evaluation and approval will be governed by City of Fort Worth Tax Abatement Policy Statement for Qualifying Development Projects. CERTIFICATIONS FOR APPLICATIONS UNDER SECTIONS 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 eligibile criteria set ity to receive tax abatements and/orobasic s app/ cableincentives as Once ed on an applicant's forth in Section III., IV., and V. of thispolicy, riate departments eligibility is certified, the Housing Department will inform appro p rientation meeting with City departments and the administering the incentives. An o applicant may be scheduled. The departments include: of Cityliens.residential properties and multi- a. Housing Department: property tax abfamily development projects, release b. Economic Development office: epertxedyuse development pro ects.tax abatement for rcial, industrial, community facilits or m 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 cation from the Ho s ng and/or other appropriate department receive a certified pp Department, each departmentloffice shallfillfil� turn iout a t Department for on of NEZ Incentives for Certified NEZ Incentives Application a 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 multamity development project application for more than five years of tax abatement:application (1) The Housing Department will evaluate a completed and certified based on: (a) The project's increase in the value of the tax base. (b) Costs to the Co{ (such as construction contractsinfrastructure c committed participation, etc.). (c) Percent of con (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. resent Based upon the outcome of the evaluation, Housing Department may p the application to the City Councils Economic Development Committee. Should the Housing Department ptteetwill ecopsider applicationto applicatithe on at a'n Development Committee, the Comm open meeting. The Committee may: (a) Approve the application. Staff will then incorporate e he appy Colica it n into a tax abatement agreement which will be sent Committee's recommendation to approve the agreement; or Adopted 5-15-2007 15 2. (b) Request modifications to the application. HousingD applicant then,aif thle discuss the suggested modifications with the requested modifications are made, resubmit the modified application to the Committee for considerations or eal the Committee's finding (c) Deny the application. The applicant may app by requesting the City Council to: (a) disregard the ICcat'on into finding x and (b) instruct city staff to incorporate the app abatement agreement for future consideration by the City Council. (3) Consideration by the City Council rove or den any tax abatement The City Council retains sole authority to app Y is under no obligation to approve any tax abatement agreement and application or tax abatement agreement. The City of Fort Worth is under no amount or value to any applicant. obligation to provide tax abatement in any c. Effective Date for Approved Agreements All tax abatements approved by the City Council will become effective on ancy (C January 1 of the year following the Yin project (unless�otherNr sficate of e spec fed in the is issued for the qualifying developmentp J tax abatement agreement). Unless otherwise specified in the agreement, taxes levied during the construction of the project shall be due and pay Property Tax Abatement for Commercial, Industrial, Community Facilities, and Mixed -Use Development Projects a. For a completed and certified application for no more than five years of tax abatement, with Council approval, the City Manager shall execute a tax abatement agreement with the applicant. b. For a completed and certified application for more than five years of tax abatement: (1) The Economic Development Office will evaluate a completed and certified application based on. (a) The project's increase in the value of the tax base. (b) Costs to the City (such as infrastructure participation, etc.). (c) Percent of construction contracts committed to: (i) Fort Worth based firms, and (ii) Minority and Women owned Business Enterprises (M/WBEs). (d) Other items which the City and the applicant may negotiate. (2) Consideration by Council Committee Based upon the outcome of tlutolothe hCityc CounlDse Economnc Office may present the application Development Committee. Should the Economic Development COo ice pr ese I the application to the Economic Development Committee, consider the application at an open meeting. The Committee may: Adopted 5-15-2007 16 (a) Approve the application. Staff will then incorporate the application into a tax abatement agreement which will be sent to the City Council with the Committee's recommendation to approve the agreement; or (b) Request modifications to the application. Economic Development Office staff will discuss the suggested modifications with the applicant and then, if the requested modifications are made, resubmit the modified application to the Committee for consideration; or 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 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 approvalI the Water Department will and grant appropriate incentives* fee waivers that do not require Council review the certified applicant's application b. For certified applications of impact fee waivers that require Council approval, the Water Department will review the certified applicant's application and make appropriate recommendations to the City Council. 5. Release of City Liens For certified applications of release of City liens, the Housing Department will release the appropriate liens. VII. REFUND POLICY Adopted 5-15-2007 � 7 In order for an owneddeveloper 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 W', 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 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 incentives provided for under the NEZ Tax Abatement Policy and Basic Incentives, an owner/developer must meet with the following persons and organizations to discuss the Project: 1. the Council Member for the District the Project is located; and 2. the neighborhood associations or community based organizations registered with the city in the NEZ the Project is located. b. Subsection (a) shall be satisfied upon: 1. the owner/developer meeting with the City Council Member for the District the Project is located and the neighborhood associations or community based organizations registered with the city in the NEZ the Project is located; or 2. meeting with the City Council Member Distrwner/develope attempted to t the Project is located and upon the owner/developer providing proof that t o meet with the neighborhood associations and the community based organizations registered with the city in the NEZ the Project is located and the associations or organizations failed to arrange a meeting with the. owner/developer within two weeks of initial contact. Adopted 5-15-2007 18: c. The Public Notification Process listed in (a) and (b) above shall only apply to NEZs in which the City Council has not approved a NEZ Strategic Plan. Once the a NEZ Strategic Plan has been approved for the particular NEZ, no public notification shall be required for NEZ Incentives so long as the Project meets the criteria outlined in the relevant NEZ Strategic Plan. X. Ineligible Projects The following Projects or Businesses shall not be eligible for any incentives under the City' of Fort Worth's Neighborhood Empowerment Zone (NEZ) Tax Abatement Policy and Basic Incentives. 1. Sexually Oriented Businesses 2. Non-residential mobile structures Adopted 5-15-2007 REFUND OF DEVELOPMENT AND IMPACT FEES POLICY Purpose This refund policy is for the purpose of establishing the conditions under which the City may refund development and impact fees, normally waived through the Neighborhood Empowerment Zone (NEZ). Applicability Unless expressly excepted, this policy applies to all development and impact fees waived by the City through the NEZ. Under the NEZ Tax Abatement Policy and Basic Incentives, City Departments are authorized to waive impact and development fees for qualified projects located in a. designated NEZ. The impact fees include only water and sewer impact fees, up to $55,000 for commercial, industrial, mixed -use or community facilities projects. The development fees that can be waived through the NEZ include: 1. All building permit fees (including Plans Review and Inspections) 2. Plat application fee (including concept plan, preliminary plat, final plat, short form replat) 3. Board of Adjustment application fee 40 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. pI event them from obtaining the qualification letter from the Housing Department. A property owner and/or developer may qualify for a refund if the proposed development project meets all criteria to receive a fee waiver under the NEZ Tax Abatement and Basic Incentives Policy and: a. The owner and/or developer was not made aware of the NEZ incentives at the time the fees were paid; or b. The owner and/or developer was mistakenly told that his/her property was not in a designated NEZ; or Adopted 5-15-2007 20 c. The owner and/or developer has put funds in an escrow account with a City Department while awaiting a decision from the City Council about his/her project; or d. City Council authorizes a City Department to issue a refund to the owner/developer. A refund charge will be assessed to help defray administration cost associated with the processing of refund check. The charge shall be 20% of the amount of the refund. This charge will be automatically deducted from the total refund amount. Statute of Limitations Any request, action or proceeding concerning the refund of fees normally waived through the NEZ must be filed within ninety days following the date that the fees were paid. An applicant who does not submit a refund request within 90 days of the transaction shall not qualify for a refund. To obtain a refund the applicant needs to: • submit a NEZ application to the Housing Department for determination of the eligibility for NEZ fee waivers, and • submit a written request to the Department in which the fees were paid. Upon receiving a confirmation from the Housing Department that the project meets all NEZ fee waiver criteria, that Department shall process the request based on the qualifications discussed in this policy. Exemptions The provisions of this policy do not apply to: a. Fees that are not waived through the NEZ program; and b. Taxes and special assessments; and c. City liens such as mowing, board -up, trash, demolition and paving liens. An applicant shall not qualify for any refund if: a. The applicant was made aware of the NEZ incentives before he/she pays the fees; or b. The applicant does not meet the requirements for NEZ incentives at the time he/she paid the fees; or c. The applicant paid the fees before the refund policy was put in place; or d. The applicant paid the fees before the designation date of the NEZ. Disclaimer 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. Ezhibit B Property Description 5516 Grenada Drive; Lot 32; Block 3; 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.