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HomeMy WebLinkAboutContract 36967T CON RACT No Y k o ;EMENT FOR PROPERTY LOCATED IN A OOD 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; iieconomic evelopment the zone; 2. An ncrease n din 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 that creates a NEZ, may enter into agreements abating municipal property taxes on property in the zone. Local Government Code provides that a municipality 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 G-15726). The May 15, 2007 NEZ Incentives are attached hereto as Exhibit "A" hereby made a part of the Agreement for all purposes. and criteria overning ax D, The NEZ Incentives contains be entered into by theeC tysas contemplated by Chapter abatement agreements to 312 of the Texas Tax Code, as amended (the "Code"). E. On February 3, 2004, the Fort Worth City Council adopted Ordinance No. 15854 (the "Ordinance") establishing "Neighborhood Empowerment Reinvestment Zone No. 16," City of Fort Worth, Texas (the "Zone"). F. Owner owns certain real property located entirely within the Lake Arlington NEZ and that is more particularly described in Exhibit "B", attached hereto and hereby made a part of this Agreement for all purposes (the "Premises"). G. Owner or its assigns plan to construct the Required Improvements, as defined in Section 1.1 of this Agreement, on the Premises to be used for as a single-family residence that will be owner occupied. (the "Project"). H. On August 13, 2004, Owner submitted an application for NEZ incentives and an application for tax abatement to the City concerning the contemplated use of the Premises (the "Application"), attached hereto as Exhibit "C" and hereby made a part of this Agreement for all purposes. I. The City Council finds that the contemplated use of the Premises, the Required Improvements, as defined in Section 1.1, and the terms of this Agreement are consistent with encouraging development of the Zone in accordance with the NEZ purposes for its creation ande laws ordinanceser leshanderegulations.ntives, the Resolution and other applicab e in compancwit d, 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,tsn has been furnished in the manner prescribed by the Code to the presiding officers of the governing bodies of each of the taxing unii which the Premises is located. NOW, THEREFORE, the City and Owner, in follwsn of the terms and covenant and a conditions set forth herein, do hereby contract, agree as o: 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% as dermined y an mortared brick and having an appraised value re $Imp00000, ents")te owne rshall "Required independent appraiser (collectively, the R q1 provide a survey of the completed home shonI after the salewing Required .rovements before the The parties grree that home is sold and a copy of the independent appraisal the final survey and independent appraisal shall o be a part of this subst ntial vaat ons Agreement f appr ved be labeled Exhibit E. Minor variations, and m writing by both of the parties to this Agreement, Abat Abatement shall not constitutte an Event description provided in the Application for Tax 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. t;om iecion ila�c �� x... ---- Owner covenants to substantially complete construction of all of the Required Improvements wpermi ithin one year from the issuance and receip in which case the two yea sesh shall beexttended unless delayed because of force majeur , of by the number of days comprising the specific t force beyondeure.owner's reasonable purposes s control, Agreement, force majeure shall mean an even y sed adverse weather, delays in receipt of any including, without limitation, delays caub rnmental authority, or acts of God, fires, required permits or approvals from any government shortages as strikes, national disasters, wars, riots and material 1 soleor abor discretiontlons which ofnot be determined by the City of Fort Worthpurely unreasonably withheld, but shall not include construction delayselays caused inobtaining of tadequate financial matters, such as, without limitation, y financing. 1.3. Use of Premises. Owner covenants all that the Required Improvements shall be construcLe rimary residence of the Premises shall be sold so thaNt�tri the descr ption of the Projecis continuously used as the t set forth in the Exhibit Home Buyer in accordance In addition, Owner covenants that throughout the Tenn, the Required in this Ipurposes set forth mprovements shall be operated and maintained for the teneral purposes of encouraghe e Agreement and in a manner that is consistent wit g development or redevelopment of the Zone. 2, AIiA 1 L' lYlL' lr 1 hiriv �. • - -- -- 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. p Abatement" of real property taxes only includes City of Fort this Section 2 ("Abatement"). " Worth -imposed taxes and not taxes from other taxing entities. 2.1. Amount of Abatement. The actual amount of the Abatement granted under this Agreement shall be in value of the Premises and the Required Improvements over based upon the increase 7, the year in which this Agreement was entered into: their values on January 1, 200 One Hundred percent (100%) of the increase in value from the construction of the Required Improvements. If the square footage requirement and the of this Agreement�Owner hallnot Improvements are less than as provided in Section be eligible to receive any Abatement under this Agreement. 2.2. Increase in Value. The abatement shall apply only to taxes and shall not apply to axesr onithe ses due to construction of the Required Improvements 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 Over A raisals or Assessments. Owner shall have the right to protest thereon test any or all appraisals or assessments of the Premises and/or improvements 2.5. Abatement Annlication Fee* receipt from Owner of the required Abatement app The City acknowledges lication fee of $25.00 per single family house. The application fee shall not be credited or refunded to any party for any reason. 3. 3.1. Inspection of Premises. Between the execution date of this Agreement and the last day of the Term, at any time during construction of the Required Improvements and following reasonable notice to Owner, the City shall have and Owner shall provide access to the Premises in order for mprovements to ensure the City to inspect the Premises adconditionsluate the Required of this Agreement. Owner shall cooperate compliance with the termss 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 Owner is using the Required Improvements as its primary provide documentation that residence (collectively, the "Records") at any time during the Compliance Auditing Term in order to determine compliance with this Agreement. Owner shall make all applicable ity following Records available to the City on the Premisesshall aotherwhlocationer C se cooperate fully with the City reasonable advance notice by the City t an and during any audit. 3.3. Provision of Information. On or before February 1 following the end of every year during the Compliance Auditing Term and if requested by the City, Owner er'sshall compl compliance with each oft e documentation for the previous year that addresses terms and conditions of this Agreement for that calendar year. ithin the control of Owner required by thi Failure to provide all information ws Section 3.3 shall constitute an Event of Default, as defined in Section 4.1. 3.4. Determination of Compliance. liance ting Term� the On or before August 1 of each yeareduring 1 amualthe ppercen ages of Abatement City shall make a decision and rule on t available to Owner for the following year of the Term and shall notify Owner of such decision and ruling. The actual percentage of the Abatement granted for a given year of the Term is therefore based upon Owners compliance with the terms and conditions of this Agreement during the previous year of the Compliance Auditing Term. to EVENTS OF DEFAULT. 4.1. Defined. Unless otherwise specified herein, Owner shall be in default of this Agreement igr 1 mentf ad Owner fails to construct the Required Improvements he Prem s ssor thedefineProjectd in e or its ad valorem valorem real property taxes with respect to taxes with respect to the tangible personal property located on the Premises, become perly follow the legal procedures for protest delinquent and Owner does not timely and pro and/or contest of any such ad valorem real property or tangible personal property taxes or (iii) HOME BUYER DOES NOT USE THE BEGINS, (MISES AS PRIMARY HOME BUYER DOES RESIDENCE ONCE THE ABATEMENT NOT COMPLY WITH CHAPTER 7 AND APPENDIX (collectively, Oeach Ean "Event nO° ORDINANCE OF THE CITY OF FOR WORTH Default"). 4.2. Notice to Cure. Subject to Section 5, if the City determines that an Event of Default has occurred, tcribthe City shall provide a written notice to owner a hadtadssfromeSthe date ofthe nature � ece pthe E vent of this Default. Owner shall have ninety (90) calendar y wner reasonably written notice to fully cure or have cured the vcure t eDefa Event of Deent of t. ifOfault, Owner shall believes that Owner will require additional timeto promptly notify the City in writing, in which case (i) after advising the City Council in an open meeting of Owner's efforts and intent to cure, Owner shall have one hundred eighty . (..) (180) calendar days from the original date of receipt of the written notice, or iii caner wner will require more than one hundred eighty (180) days to reasonably believes that O cure the Event of Default, after advising the Corte fany, in an open meeting as may be offered by the City efforts and intent to cure, such additional t Council in its sole discretion. 4.3. If an Event of Default which is defin ed4.2 the C tys hallbhavecther ght to the time frame specifically allowed under Section terminate this Agreement immediately. y's eracknowledges and agrees onomic development and that an uncured redevelopment Event of Default will (i) harm the City s economic efforts on the Premises and in the vicinity of the Premises; (ii) require unplanned and expensive additional administrative oversigh�a d i volveme amount no by damagesdthere otherwise harm the City, and Owner agrees that from are speculative in nature and will beEvent or impossible to ascertain. Therefore, of Default, Owner hall not be eligible upon termination of this Agreement for anyy for the Abatement for the remainig Term anOw ner this Agreement�for as leachdyear damages, all taxes that were abated In accordance been d to the when an Event of Default existed and which otherwise w erlagreeethat this amount Csta in the absence of this Agreement. The City a reasonable approximation of actual damages th4t3the s City will incur as a result of an intended to provide the City with uncured Event of Default and that this Section compensation for actual damages and is not a penalty. valorem amount property tax appraisal by he the City through adjustments made to Owners p this amount shall be appraisal district that has jurisdiction over the Premises. Otherwise, ectiv due, owing and paid to the City within of sixty (60 ent that lldor anays oll following of thithe s amountisen t termination of this Agreement. I th s foe ev llow ng the effective date of termination of this paid to the City within sixty (60) y nalties and interest on any outstnding Agreement, Owner shall also be liable for all pas determined by the Code at the time of amount at the statutory rate for delinquent taxes, ies and interest (currently, Section 33.01 of the Code)& the payment of such penalt 4.4. Termination at Will. If the City and Owner mutually determine that the development or use of the Premises or the anticipated Required Improvementsare no longer Crt and Ownerappropriate terminate 1 his or that a higher or better use is preferable, the Y if the Term Agreement in a written format that is sig Selo b he effective date ofboth parties. Inithe termination of this has commenced, the Term shall expire a Agreement; (n) there shall be no recapture of any taxes previously abated; and (iii) neither party shall have any further rights or obligations hereunder. 4.5. a, Owner understands and agrees the City has the right to terminate this ell agreement if the Project contains o and ac�eeslthatn a sthe City has the exually oriented rght to terminate this b. Owner understand g 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 Departmentr ents as Director� or emO smpr'maryresidence o� the a homebuyer who will use the Required p homeowner's mortgagee which City Council herebyagrees is to5 this Abatement cannot be which consent shall of be assigned without the prior consent of the City unreasonably withheld provided that (i) the City Council finds that the proposed assignee is i) the financially capable of meeting the terms and conditions rand is Ageement of a nerlunder proposed purchaser agrees in writing to assume rights this Agreement. Owner may not otherwise assign, lease or out the Cityonvey Council's prior y of sconsent ushall this Agreement. Any attempted assignment with tY constitute grounds for termination of this Agreement andnotit from the Cnty to OwneTanted reunder following ten (10) calendar days of receipt of written 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 with u der this agreemehe written nt, of City Council, Owner shall have no further duty or obligation C7 J F THIS THE FAILURE OF OWNER TO SEND THE I AND EXECUTION -t-v TION OF THE SALE OF THE REQUIRED IMPROVEMENTS ASSIGNMENT OF THIS AGREEMENT OWNERSHIP NEWTH THE OWNER HER WITHIN 30 DREQUIRED DAYS OF THE TRANSFER OF IMPROVEMENTS SHALL RESULT IN THE ECUTOED ASSIGNMENT MUST BE NATION OF 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 either party designates in writing, by certified mail, postage prepaid, or by hand delivery: City: City of Fort Worth Attn: City Manager city 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 if outstanding bonds of the City. Agreements subject to rights of holders o 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 mission or any member of the governing body of any taxing City Planning or Zoning Com 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, hesuch bod ordinances Agieem ntlandns shall Exhibit control. In the event of any conflict betweenY "D", the body of this Agreement shall control. 7.4. Future Application. le A portion or all of the Premises and/oraloremuta es as improvementsired a result of existing elaw lbor for complete or partial exemption from ad v This Agreement shall not be construed as evidence that such future legislation. exemptions do not apply to the Premises and/or Required Improvements. 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 21, 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 to theh a ona Ownler,de sshallein cude� sebut not certificate, which if requested will be addressed necessarily be limited to, statements that exhsts the nature of the Eventforce of Defaulteffect and without default (or if an Event of Default , of this curative action taken and/or necessary to effecthe Abatement i n effect, nand 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 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, the State Distror icies of the City. Venue for any c tlCourt 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. is held to al or If any provision of this Agreement the remaining invalid, g hall not in any way the validity, legality and enforceability of g provisions be affected or impaired. 7.11, Headinis 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 erest, as to the matters between the City and Owner, their assigns and successors in int 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. be amended unless executed in writing by both parties and This Agreement shall not 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 24 day of�� , 2008, by the City of Fort Worth, Texas. EXECUTED this day of , 2008, by Waterview Estates, L.P., Pars Investment, Inc., General Partner. CITY OF FORT WORTH: By: Mehrdad Moayedi President AT'TES T At PRQVED A5 TO FORM AND LEGALITY: By: Charlene Sanders Assistant City Attorney r ����� � C �o22S1'f M & C: —�T 7 -;oil; s, STATE OF TEXAS § COUNTY OF TARRANT § ;Z ��' BEFORE ME, the undersigned authority, on this day personally appeared . . gcr 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 , 2008. r Notary Public in and for the State of Texas Notary's Printed Name AND SEAL OF OFFICE this day of NOTARY pUBLIC STATE OF TEVVS My Comm Exp.12-14-2 009 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Mehrdad Moayed1 of Waterview Estates, L.P., a Texas Limited Partnership, Pars Investments, Inc., General Partner, is subscribed to the foregoing instrument, and known to me to be the person whose name acknowledged to me that he executed the same for the purposes and consideration therein ity therein stated and as the act and deed of Waterview Estates, L.P., a expressed, in the capac Texas Limited Partnership, Pars Investment, Inc., General Partner. GIVEN UNDER MY HAND AND B� me), dh✓7 I .2008. Notary Public in and for the State of Texas Notary's Printed Name of SEAL OF OFFICE this 1 a day °`°3 L?,l1ftA VIAYI� ID /JIB tvfy Conjmision upires Atli / 14, 2003 Exhibit A: NEZ Incentives Exhibit B: Property Description Exhibit C: Application: (NEZ) Incentives and Tax Abatement Exhibit D: Project description including kind, number and location of the proposed improvements. Exhibit E: Final Survey and Independent Appraisal Exhibit A CITY OF FORT WORTH NEIGHBORHOOD EMPOWERMENT ZONE (NEZ)TAXABATEMENT POLICY AND BASIC INCENTIVES I. GtNt1WL ruRrv.��. r,•�• .• --- - - o create a Chapter 378 of the Texas Local Government Code allows dmunicipality thattthe creation Neighborhood Empowerment Zone (NEZ) when a ...murnc p yete mines of the zone would promote: (1) the creation of affordable housing, including manufactured housing, in the zone; (2) an increase in economic development in the zone; (3) an increase in the quality of social services, education, or public safety provided to residents of the zone; or (4) the rehabilitation of affordable housing In the zone." The City, by adopting the following NEZ Tax Abatement Policy and Basic Incentives, will promote affordable housing and economiche NEZ expires nt ln Neighborhood as defined in the Eesol mpowermentlion designating. Zonese NEZ incentives will not be granted after p additional terms and incentives as the NEZ. For each NEZ, the City Council may approve permitted by Chapter 378 of the Texas Local Government expirati expiration NEZ shall carry or by City 'lits fulluterm However, any tax abatement awarded before the according to its tax abatement agreement approved by the City Council. atement under this policy applies to the owners of As mandated by state law, the property tax ab real property. Nothing in the policy shall be construed as an obligation by the City of Fora Worth to approve any tax abatement application. 11. DEFINITIONS "Abatement" means the full or partial eo ns and an amount f uup o 100% of the nc ease in eligible properties for a period of up to 1 year appraised value (as reflected on the certified approprof the'taxcabatementaagreelment resulting from improvements begun afte the execution 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 and facility modernization. Capital Investment structures, site improvements, facility expansion, on, costs and/or any existing improvements, or personal property does NOT include land acquisition lies and inventory). (such as machinery, equipment, and/or supp 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 ial, industrial or mixed use as defined by the City of Fort requirements to be) zoned commerc Worth Zoning Ordinance. "Community Facility Development Project" is a development project which proposes to construct or rehabilitate community facilities on property that allows such use as defined by the City of Fort Worth Zoning Ordinance. l property. Eligible "Eligible Rehabilitation" includes . only physical improvements to rea Rehabilitation does NOT include personal property (such as furniture, appliances, equipment, and/or supplies). "Gross Floor Area is measured by taking the outside dimensions of the building at each floor level, except that portion of the basement used only for utilities or storage, and any areas within the building used for off-street parking. "Minimum Building Standards Code" is Article IV of the Fort Worth City Code adopted pursuant to Texas Local Government Code, Chapters 54 and 214. "Minority Business Enterprise (MBE)" and "Women Business Enterprise (WBE)" is a minority or woman owned business thathas Texas received Regional Certification rtification as either a certified Certification Agency (NTRCA) of the Texas or certified WBE by either the North 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 rehabilitate multi -family residential living units on property that is (or meets the requirements to be) zoned multi -family or mixed use as defined by the City of Fort Worth Zoning Ordinance. "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 codified of Fort Worth of accordance with the Property Redevelopment and Tax Abatement Act he Texas Tax Code, or an area designated as an enterprise zone pursuant to the Texas Enterprise Zone Act, codified in Chapter 2303 of the Texas Government Code. Adopted 5-15-2007 2 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. fter NEZ c. Homeowner must perform Eligible Rehabilitation on the property a 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 rmance with the City of Fort Worth Zoning Ordinance. e. Property is in confo 3. For investor owned single family property, an investor shall be eligible to apply for a tax abatement by meeting the following: a. Property is constructed or rehabilitated after NEZ designation and City Council approval of the tax abatement; b. For rehabilitated property, Eligible Rehabilitation costs on the property shall be equal to or in excess of 30% of the Base Value of the property; c. Property is not in a tax -delinquent status when the abatement application is submitted; and d. Property is in conformance with the City of Fort Worth Zoning Ordinance. MULTI -FAMILY DEVELOPMENT PROJECTS LOCATED IN A NEZ 1. 100%Abatement for 5 years. less this section shall apply. Adopted 5-15-2007 subj UP o 5 Abatements for multifamily development projects for the Hous ars are artmenttfo� City Council approval. The applicant may apply withsuch abatement. The applicant must apply for the tax abatement and be approved by City Council before construction or rehabilitation is started. In order to be eligible for a property tax abatement upon completion, a newly constructed or rehabilitated multi -family development project in a NEZ must satisfy the following: At least twenty percent (20%) of the total units constructed or rehabilitated shall be affordable (as defined by the U. S. Department of Housing and Urban incomes at or below eighty percent (80%) of area Development) to persons with 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 (a) 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 (b) For a rehabilitation project, the property must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property. Such Eligible Rehabilitation costs must come from the rehabilitation of at least five (5) residential living units or a minimum Capital Investment of $200,000. years this section shall apphi. Abatements for multi -family development projects Wp to 10 yearsing Departmenttfo0 City Council approval. The applicant may apply with the 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 c ui a IC 11 aA MuaL�, I 1..1 06 • • • --. � - Multi -family projects shall be eligible for 1000/o abatement of City ad valorem taxes for years one through five of the Tax Abatement Agreement upon the satisfaction of the following: At least twenty percent (20%) of the total units constructed or rehabilitated shall be affordable (as defined by the U. S. Department of Housing and Urban t or below eighty percent (80 Development) to persons with incomes a%) of area median income based on family size and such units shall be set aside for Adopted 545-2007 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 est at, least of five (5) r sidential living units OR have a minimum Capital In must 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 abiliiof of at least five (5) residential living units or a minimum Capital Investment Years 6 throu h � u or me � ax ru4«�- ---• . _ .. _ Multi -family projects shall beel eibl of°the 1Tax Abatement Agreement u upon orthe taxes for years six through satisfaction of the following: a. 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 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 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 2. For a rehabilitation project, the property s on the property shall be at least designation. Eligible Rehabilitation cost 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 $200,0 t Worth deems appropriate, . b. Any other terms as cityCouncil of the cityof For 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 property inspection; 4. commit to hire an agreed upon percentage of Fort Worth residents 5. commit to hire an agreed upon percentage of Central City residents 6. landscaping; 70 tenant selection plans; and 8. management plans. C, COMMERCIAL, INDUSTRIAL AND PROJECTS LOCATED IN A NEZ COMMUNITY FACILITIES DEVELOPMENT F less this section snau appiv. Abatements for Commercial, Industrial and Community Facilities Development Projects for up to 5 years are subject to City Council approval. The applicant may apply with the Housing Department for 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: 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 projectit must berehabilitated be t east 30% of the Base Value of Rehabilitation costs on theproperty the property, or $75,000, whichever is greater. 2. 1 Years this section shall appiv. Abatements agreements for a Commercial, Industrial and Community Facies Development projects for e Economic to 10 ars are and Commuect to nity y Development lDepartment for applicant may apply with th such abatement. The applicant must apply for the tax abatement and be approved by City Council before construction or rehabilitation is started. Years 1 throu h 5 of the � aX HvaiCi i ici 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, must be be at east 30°0 od after NEZ f the BasenVal Eligible ebof Rehabilitation costs on theproperty the property, or $75,0002 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 valo ton of the following:ix through ten of the Tax Abatement Agreement upon the 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; 3v commit to hire an agreed upon percentage of Fort Worth residents; 4w commit to hire an agreed upon percentage of Central City residents; and 5. landscaping. D. MIXED -USE DEVELOPMENT PROJECTS LOCATED IN A NEZ 1. less this section sna�� apply. Abatements for Mixed -Use Development Projects ts� th the Hous ngsDepartmenttfo� City Council approval. The applicant may apply such abatement. I for the tax abatement and be approved by City Council The applicant must apply 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. 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, e of the total Gross Floor Area of the project;. project constitute 10 per and (1) A mixed -use development project constructed after NEZ designation must have a min_ Capital Investment of $200,000; or Adopted 5-15-2007 7 (2) For a rehabilitation project; it must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property, or $200,000, whichever is greater. 2. years this section snail apu� to Abatements agreements for a Mixed Use Development projecti f withpthe 1Housing are subject to City Council approval. The applicant may apply Department for such abatement. The applicant must apply for the tax he tax abatement musttement before y be l approved on or rehabilitation is started and the application for Council. Years 1 throu h 5 of the Tax HpaLeme� �► � ��� Mixed Use Development projects shs lobthe l'Tax Abatem0en�t Agreement upon the valorem taxes for the first five year 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, morend/or retail sales and of the total Gross Floor Area of the project; proce uses in the ject constitute 10 percent o and c. A new mixed -use development project ent of $200,000;eor forer NEZ a rehabilitation designation project, it have a minimum Capital Investm ible Rehabilitation costs on the must be rehabilitated after NoEZodf the Basgnati e Value of the property, or $200,000, property shall be at least 30 /o whichever is greater. Years 6 throu h 10 of the i ax Hoaten �C� �� ��, �• Mixed Use Development projects shtelnbof thelTax Abatem0e/nt Agreement upoln the valorem taxes for years six through satisfaction of the following: a. Residential uses in the project constitute 20 percent or more of the total Gross Floor Area of the project; and b. Office, eating and entertainment, and/or retail otal G oss Floor Area of the project e project constitute 10 percent or more of the t c. Anew mixed -use development project constructed 0 000 or forer NEZ a rehabilitation designation must it have a minimum Capital Investment of $200,000; must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the Adopted 5-15-2007 8 E. property shall be at least 30% of the Base Value of the property, or $200,000, 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; 2. utilization of certified minority and women owned business enterprises for an agreed upon percentage of the total costs for construction contracts; 3a 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; 70 tenant selection plans; and 80 management plans. ABATEMENT GUIDELINES 1. If a NEZ is located in a Tax Incremen' nc eDn'tivres in ISe tionnllll 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. 2. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order to be considered "eligible" to apply for a tax abatement under this Policy, the rporation and Woodhaven Community Development Coort forte Project to Neighborhood Association must have submitted a letter of supp 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 Wrth abatement co tenor a specific Project if: 1. the Project meets NEZ to nd 2. the applicant is not responsible for the tax delinquency for the Property; and 3. the applicant enters into an agreement to pay off the taxes under the guidelines permitted under state law; and 4. the tax abatement shall provide that the agreement shall take effect after the delinquent taxes are paid in full erty owned b the b. Not have any City of Fort orthe enLiefile,, applicant property owner/dev p includet but are any pot limited to, weed 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 ts not eligible for tax abatemen. Adopted 5-15-2007 owner of a residential property (including multi -family) in the 5. 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 shall automatically of the City of f Fort property subject to the tax abatement agreementhe t ►s ►n violation Worth's Minimum Building Standards Code and the owner is convicted of such violation. d under the cfotr a maximoum termrth in ection of as Islpecified my be 6. A tax abatement grantethe granted once for a property in a NEZ agreement. If a property on which tax islbeing e blateodce theis dnew o ner, the City dt subm tsan tax abatement agreement for the rema g application. 7. A property owner/developer of a multifamily developm nn the NEZ who t, commercial, ►desires Ia community facilities and mixed -use development prof ect tax abatement under Sections III.B, C or D must. a. Satisfy the criteria set forth in Sections 111.13, C or D, as applicable, and Sections III.E.1 E.2; and E3. and b. File an application with the Housing Department, as applicable; and c. The property owner must enter into a tax abatement agreement with the City of ent, the Fort Worth. In adment dition to the other agreem nt hallgreern automatically terminateeif the agreement shall provide that the ag ion of a violation of the Cisub e of Fort Worth's Minimum owner receives one convictct 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 on which tax is being abated ►s sold, the n ew owfor the remaining term may enter into a tax abatement agreement on the property ty Council 8. If the terms of the tax abatement agreement agreement. ln he event t met, the lof cancellation, the as the right to cancel or amend the abatement recapture of abated taxes shall be limited to the year(s) in which the default occurred or continued. 9. The terms of the agreement shall includestatements the ltyn each yeaof Fort rthduri g right the life of review the and verify the applicants financial s iven year, 2 conduct an on site agreement prior to granting a tax abatement urin any the life of the abatement to verify inspection of the project in each y g 3 terminate the compliance with the termscontainseorawill abatement sexually agreement, orient d business (4 agreement if the Project terminate the agreement, as determined in City's sole discretion, if the Project contains or will contain a liquor store or package store. 10. Upon completion of construction of the facilities, the City shall no less than annually evaluate each project receiving abatement tto insure will be reportliance ed to the City Council with the terms f the agreement. Any incidents of non comp) 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. owner's provide information and document compliance with the terms of thetagreement eemch epropertytails the ent and shallertify that the respective owner is in compliance with each applicable term of the agreement. Failure to report he required certification by the above deadline s this information and to prhall ovide t d any taxes abated in the prior year being due result in cancellation of agreement an and payable. 11. If a property in the NEZ on which tax o being abated is erty for the,remaining may terme new . Any enter into a tax abatement agreement o wh which is not permitted in the tax abatement sale, assignment or lease of the property agreement results in cancellation of the agree abated after the date on which an unspecified assignment occurredment and ure of any taxes APPLICATION FEE 1. An application fee of $25.00 for all basic incentives, excluding tax abatements. 2. The application fee for residential tax abatements governed under Section III.A is $loom and 3. The application fee for multi -family, commer ndler Sections III B.mC sand D , ss one - mixed -use development projects governed u :)posed Project's Capital Investment, with a $200 half of one percent (0.5%) of the pr The Application Fee shall not be credited or minimum not to exceed $2,000. refunded to any party for any reason. FEE WAIVERS ELIGIBLE RECIPIENTSIPROPERTIES case basis whether a Project that will 1. City Council shall determine on a c r package store is eligible to apply for a fee contain or contains a liquor store or waiver. 2. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order I for a fee waiver under this Policy, the Woodhaven to be considered "eligible" to apply Community Development Corporation and the Woodhaven for e NeighborhoodProject to the City of Fort Association must have submitted a letter of support Ian is submitted for the Woodhaven NEZ, this will Worth —however, once the NEZ P 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 owner/developer: Project, the property 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; property owned by the applicant c. must not have any City liens filed against any prop y property owner/developer, including but not limited to, weed liens, demolition liens, board-up/open structure liens and paving liens; and ackage store or a sexually d. of a Project that will contain or contains a liquor store, p 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 approved and certified by the City, the 1 of Fort he NEZ following fees for services performed by the rehabilitation projector thatrth f ects expendt at east are waived for new construction erortlects or on Eligible Rehabilitation costs: 30% of the Base Value of the property 1. All building permit related fees (including Plans Review and Inspects plat, short form 2. Plat application fee (including concept plan, preliminary plat, replat) 3. Board of Adjustment application fee 4. Demolition fee 5. Structure moving fee application fee 6. Community Facilities Agreement (CFA) 7. Zoning application fee application fee 8. Street and utility easement vacation g. Ordinance Inspection Fees Application Fees 10. Consent/Encroachment Agreement p Other development related fees not specified above will be considered for approval by City Council on a case -by -case basis. C. IMPACT FEES 1. Single family and multi -family residential development projects in the NEZ. Automatic 100% waiver of water and wastewater impact fees will be applied. 2. Commercial, industrial, mixed -use, or community facility development projects in the NEZ. t fees o or a. Automatic 100% waiver of water ande chtcommerc al,ewater cindustrial; t mixed -use or equivalent to two 6-inch meters for community facility development project. b. If the project requests an impact fee 6-inch meter, then City Council approval waiver exceeding $55,000 or is waiver for largerg a 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 tha Project that will City Council shall determine on a case -by -case basis wheer for a fee contain or contains a liquor store or package store is eligible to apply waiver. ne, in If a Project is located in the Woodhaven Neigho liens under this nPol� y, theorder to be considered eligible eof c to apply for release Y Woodhaven communithe Woodhaven y must havetsubm submitted Corporatioa and t letter of support for the Project to Neighborhood Associ the City of Fort Worth —however, once the NEZ Plan is submitted for the Woodhaven 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. 3 4. ert owner/developer to be eligible to apply for a release of city In order for a prop y liens contained in Section V.B., C., D., and E. for a Project, the prope y owner/developer: a. must submit an application to the City; taxes for any property owned by the b. must not be delinquent in paying property owner/developer; b. must not have been subject to a Building twith Standards eClast five (5) years; tler o Demolition where the property was demolished c. must not have any City of Fort Worth liens erfiled1e ns"r includes,st any tbut s not limited to, y ow by the applicant property owner/deve p weed liens, demolition liens, board-up/open structure lienspackage tore orla sexually 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. In order for a Rehabilitation Project to Rehabilitafy tion �osts onr a ease the Property of at lease f city liens, the owner/developer must spend Eligible R 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 their properties. 13 Adopted 5-15-2007 2. Builders or developers constructing new homes on vacant lots. . 3. Owners performing rehabilitation on multi -family, commercial, industrial; mixed -use, or community facility properties. 4. Developers constructing new multi -family, commercial, industrial, mixed -use or community facility development projects. C. DEMOLITION LIENS Builders or developers developing or for uto$3000 Releases of demolition rehabilitating eligible s in apply for release of demolition liens p royal. excess of $30,000 are subject to City Council app D. BOARD-UPIOPEN STRUCTURE LIENS The following are eligible to apply for release of board-up/open structure liens: 1. Single unit owners performing rehabilitation on their properties. ltso 2. Builders or developers constructing new single fa ily home commercial, n vacant industrial trial,omixed-use, 3. Owners performing rehabilitation on mutY or community facility properties. -family, commercial, industrial, mixed -use, or 4. Developers constructing multi community facility projects. E. PAVING LIENS The following are eligible to apply for release of paving liens: 1. Single unit owners performing rehabilitation on their properties. 2. Builders or developers constructing new homes on vacant lots. 3. Owners performing rehabilitation on multi -family, commercial, industrial, mixed -use; or community facility properties. i-family, commercial, industrial, mixed -use, 4. Developers constructing multor community facility projects. EDURAL STEPS AJ APPLICATION SUBMISSION The applicant for NEZ incentives under Sections III. IV., and V. musthe a plate r ate submit a City of Fort Worth Application for NEZ Incentives" and pay pp p application fee to the Housing Department, as applicable. 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. 2 CERTIFICATIONS FOR APPLICATIONS UNDER SECTIONS III. IV, AND V 1. The Housing Department will review the application for accuracy and Adopted 5-15-2007 14 completeness. Once the Housing Department determines that the application is complete, the Housing Department will certify the property owner/developer's eligibility to receive tax abatements and/or basic incentives based on the criteria set forth in Section Ill., IV., and V. of this policy, as applicable. Once an applicant's eligibility is certified, the Housing Department will inform appropriate departments administering the incentives. An orientation meeting with City departments and the applicant may be scheduled. The departments include: a. Housing Department: property tax abatement for residential properties and multi- family development projects, release of City liens. b. Economic Development Office: property tax abatement for commercial, industrial, community facilities or mixed -use development projects. c. Development Department: development fee waivers. d. Water Department: impact fee waivers. e. Other appropriate departments, if applicable. 2. Once Development Department, Water Department, Economic Development Office, and/or other appropriate department receive a certified application from the Housing Department, each department/office shall fill out a "Verification of NEZ Incentives for Certified NEZ Incentives Application" and return it to the Housing Department for record keeping and tracking. Co APPLICATION REVIEW AND EVALUATION FOR APPLICATIONS 1. Property Tax Abatement for Residential Properties and Multi -family Development Projects a. For a completed and certified application for no more than five years of tax abatement, with Council approval, the City Manager shall execute a tax abatement agreement with the applicant. b. For a completed and certified multi -family development project application for more than five years of tax abatement: (1) The Housing Department will evaluate a completed and certified application based on: (a) The project's increase in the value of the tax base. (b) Costs to the City (such as infrastructure participation, etc.). (c) Percent of construction contracts committed to: (i) Fort Worth based firms, and (ii) Minority and Women Owned Business Enterprises (M/WBEs). (d) Other items which the City and the applicant may negotiate. (2) Consideration by Council Committee. Based upon the outcome of the evaluation, Housing Department may present the application to the City Council 's Economic Development Committee. Should the Housing Department present the application to the Economic Development Committee, the Committee will consider the application at an open meeting. The Committee may: (a) Approve the application. Staff will then incorporate the application into a tax abatement agreement which will be sent to the City Council with the Committee's recommendation to approve the agreement; or Adopted 5-15-2007 15 (b) Request modifications to the application. Housing Department staff will discuss the suggested modifications with the applicant and then, if the requested modifications are made, resubmit the modified application to the Committee for consideration; or (c) Deny the application. The applicant may appeal the Committee's finding by requesting the City Council to: (a) disregard the Committee's finding and (b) instruct city staff to incorporate the application into a tax abatement agreement for future consideration by the City Council. (3} Consideration by the City Council The City Council retains sole authority to approve or deny any tax abatement agreement and is under no obligation to approve any tax abatement application or tax abatement agreement. The City of Fort Worth is under no obligation to provide tax abatement in any amount or value to any applicant. c. Effective Date for Approved Agreements All tax abatements approved by the City Council will become effective on January 1 of the year following the year in which a Certificate of Occupancy (CO) is issued for the qualifying development project (unless otherwise specified in the tax abatement agreement). Unless otherwise specified in the agreement, taxes levied during the construction of the project shall be due and payable. 2. rty Tax Abatement for Commercial, Industrial, Community Facilities, and Prope 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 at tax abatement agreement with the applicant. b. For a completed and certified application for more than five years of tax abatement: (1) The Economic Development Office will evaluate a completed and certified application based on: (a) The project's increase in the value of the tax base. (b) Costs to the City (such as infrastructure participation, etc.). (c) Percent of construction contracts committed to: (i) Fort Worth based firms, and (ii) Minority and Women owned Business Enterprises (M/WBEs). (d) Other items which the City and the applicant may negotiate. (2) Consideration by Council Committee Based upon the outcome of the evaluation, the Economic Development Office may present the application to the City Council's Economic Development Committee. Should the Economic Development Office present the application to the Economic Development Committee, the Committee will consider the application at an open meeting. The Committee may: Adopted 5-15-2007 (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 econstruction of the project shall beent). Unless otheise 'fied in due andhpayable merit, taxes levied during th 3. Development Fee Waivers a. For certified applications of development fee waivers that do not require Counoil 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 review the certified applicant's application and make approval, City staff will rev appropriate recommendations to the City Council. 4. Impact Fee Waiver a. For certified applications of impact fee waivers that do not require Council approval, the Water Department will review the certified applicant's application and grant appropriate incentives. 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 17 In order for an owner/developer of a Project in a NEZ to receive a refund of development. fees or impact fees, the conditions set forth in the Refund of Development and Impact Fee Policy, attached as Attachment "A", must be satisfied. 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 organizations registered with the city in the NEZ the Project is located; or 2. meeting with the City Council Member mberf �� t thhe e orict the Project is located and wner/develope attempted to upon the owner/developer providing p 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 Proiects The following Projects or Businesses shall not be eligible for any incentives under the Cityof Fort Worth's Neighborhood Empowerment Zone (NEZ) Tax Abatement Policy and Basic Incentives: 1. Sexually Oriented Businesses 2. Non-residential mobile structures ATTACHMENT A REFUND OF DEVELOPMENT AND IMPACT FEES POLICY Purpose This refund policy is for the purpose of establishing the conditions under which the City may refund development and impact fees, normally waived through the Neighborhood Empowerment Zone (NEZ). Applicability Unless expressly excepted, this policy applies to all development and impact fees waived by the City through the NEZ. Under the NEZ Tax Abatement Policy and Basic Incentives, City Departments are authorized to waive impact and development fees for gualified 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) 1 Board of Adjustment application fee 4. Demolition fee 5. Structure moving fee 6. Community Facilities Agreement (CFA) application fee 7. Zoning application fee 8. Street and utility easement vacation application fee. To take advantage of these waivers, applicants need to obtain a certification letter from the Housing Department. Conditions for Refunds The City will consider refunds only when circumstances beyond the developers control. prevent them from obtaining the qualification letter from the Housing Department. A property owner and/or developer may qualify for a refund if the proposed development project meets all criteria to receive a fee waiver under the NEZ Tax Abatement and Basic Incentives Policy and: a. The owner and/or developer was not made aware of the NEZ incentives at the time the fees were paid; or b. The owner and/or developer was mistakenly told that his/her property was not in a designated NEZ; or Adopted 5-15-2007 20 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 riot qualify for any refund if: a. The applicant was made aware of the NEZ incentives before he/she pays the fees; or b. The applicant does not meet the requirements for NEZ incentives at the time he/she paid the fees; or c. The applicant paid the fees before the refund policy was put in place; or d. The applicant paid the fees before the designation date of the NEZ. Disclaimer In the event of any conflict between the City's ordinances or regulations -and this policy, such ordinances or regulations shall control. In the event of any conflict between this Adopted 5-15-2007 21 policy and other policies or regulations adopted by the City Department issuing the refund, such department policies or regulations shall control. The City reserves the right to deny any or all request for refunds. Exhibit B Property Description 5436 Grenada Drive; Lot 245 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.