HomeMy WebLinkAboutContract 40625CITY SECRETARY
CONTRACT NO.
+:MENT AGREEMENT FOR PROPERTY LOCATED IN
NEIGHBORHOOD EMPOWERMENT ZONE
1133 Bessie Street
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 T.M.
Higgins, its duly authorized Assistant City Manager, and KT Land, LTD. ("Owner"), a
Texas Limited Partnership by and between KT Land Management, LLC, a Texas Limited
Liability Company, General Partner, and Neighborhood Homes, acting by and through
Tom L. Struhs, its duly authorized Manager.
The City Council of the City of Fort Worth ("City Council") hereby finds and the
City and Owner hereby agree that the following statements are true and correct and
constitute the basis upon which the City and Owner have entered into this Agreement:
A. Chapter 378 of the Texas Local Government Code allows a municipality
to create a Neighborhood Empowerment Zone (NEZ) if the municipality
determines that the creation of the zone would promote:
1. The creation of affordable housing, including manufactured housing in
the zone;
2. An increase in economic development in the zone;
3. An increase in the quality of social services, education, or public
safety provided to residents of the zone; or
4. The rehabilitation of affordable housing in the zone.
B. Chapter 378 of the Texas Local Government Code provides that a
municipality that creates a NEZ, may enter into agreements abating
municipal property taxes on property in the zone.
C. On July 31, 2001, the City adopted basic incentives for property owners who
own property located in a NEZ, stating that the City elects to be eligible to
participate in tax abatement and including guidelines and criteria -governing tax
abatement agreements entered into between the City and various third parties,
titled "NEZ Basic Incentives" ("NEZ Incentives"), these are readopted on
May 19, 2009 (Resolution No. 3742("NEZ Incentives"). The May 19, 2009
NEZ Incentives are attached hereto as Exhibit "1" hereby made a part of the
Agreement for all purposes.
®FFICi�t.� REC4� ai:-
C!�'� SECRETARY
ET7 WORTI•I, TX
D. The NEZ Incentives contains appropriate guidelines and criteria governing tax
abatement agreements to be entered into by the City as contemplated by Chapter
312 of the Texas Tax Code, as amended (the "Code").
E. On October 30, 2007, the Fort Worth City Council adopted Ordinance No. 17853
(the "Ordinance") establishing "Neighborhood Empowerment Reinvestment
Zone No. 4," City of Fort Worth, Texas (the "Zone").
F. Owner owns certain real property located entirely within the Evans/Rosedale NEZ
and that is more particularly described in Exhibit "2", 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 17, 2007 and October 5, 2007, 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
"3" and hereby made a part of this Agreement for all purposes.
I. The City Council finds that the contemplated use of the Premises, the Required
Improvements, as defined in Section 1.1, and the terms of this Agreement are
consistent with encouraging development of the Zone in accordance with the
purposes for its creation and are in compliance with the NEZ Incentives, the
Resolution and other applicable laws, ordinances, rules and regulations.
J. The City Council finds that the terms of this Agreement, and the Premises and
Required Improvements, satisfy the eligibility criteria of the NEZ Incentives.
K. Written notice that the City intends to enter into this Agreement, along with a
copy of this Agreement, has been furnished in the manner prescribed by the Code
to the presiding officers of the governing bodies of each of the taxing units in
which the Premises is located.
NOW, THEREFORE, the City and Owner, for and in consideration of the terms and
conditions set forth herein, do hereby contract, covenant and agree as follows:
1. OWNER'S COVENANTS.
1.1. Real Property Improvements.
Owner shall construct, or cause to be constructed, on each lot within the Premises
for which tax abatements are requested, certain improvements consisting of a single-
family residence (collectively, the "Required Improvements"), of at least 1065 square
feet of living space in size. Owner shall provide a survey of the completed home showing
Required Improvements before the home is sold. The parties agree that the final survey
shall be a part of this Agreement and shall be labeled Exhibit 5. 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 "4".
1.2. Completion Date of Required Improvements.
Owner covenants to substantially complete construction of all of the Required
Improvements within two years from the issuance and receipt of the building permit,
unless delayed because of force majeure, in which case the two years shall be extended
by the number of days comprising the specific force majeure. For purposes of this
Agreement, force majeure shall mean an event beyond Owner's reasonable control,
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,
strikes, national disasters, wars, riots and material or labor restrictions and shortages as
determined by the City of Fort Worth in its sole discretion, which shall not be
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 " 4".
In addition, Owner covenants that throughout the Term, the Required Improvements shall
be operated and maintained for the purposes set forth in this Agreement and in a manner
that is consistent with the general purposes of encouraging development or
redevelopment of the Zone.
2.
Subject to and in accordance with this Agreement, the City hereby grants to Owner a real
property tax abatement on the Premises, the Required Improvements, as specifically provided in
this Section 2 ("Abatement"). "Abatement" of real property taxes only includes City of Fort
Worth -imposed taxes and not taxes from other taxing entities.
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, 20090
One Hundred percent (100%) of the increase in value from the
construction of the Required Improvements.
If the square footage requirement of the Required Improvements is 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 be 100% of the increase in value from the construction of
the Required Improvements and shall apply only to taxes on the increase in value of the
Premises due to construction of the Required Improvements. The Abatement shall not
apply to taxes on the land, nor shall the abatement apply to mineral interests.
2.3. Term of Abatement.
The term of the Abatement ("Term") shall begin on January 1 %J 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 (51h) anniversary of the Beginning Date. Upon the sale to a Home Buyer,
City shall certify that the Required Improvements have been completed in
satisfaction of the terms of the agreement. However, the Compliance Auditing
Term will begin on the date this agreement is executed and will end on the
expiration fate of the Term.
2.4. Protests Over Appraisals or Assessments.
Owner shall have the right to protest and contest any or all appraisals or
assessments of the Premises and/or improvements thereon.
Z.S. Abatement Application Fee.
The City acknowledges receipt from Owner of the required Abatement application
fee of $100.00 per single family house. The application fee shall not be credited or
refunded to any party for any reason.
3. RECORDS. CERTIFICATION_ AND EVALUATION OF PROJECT.
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
the City to inspect the Premises and evaluate the Required Improvements to ensure
compliance with the terms and conditions of this Agreement. Owner shall cooperate
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 4.
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 Premises or at another location in the
City following reasonable advance notice by the City and shall otherwise cooperate fully
with the City during any audit.
3.3. Provision of Information.
On or before March 1 following the end of every year during the Compliance
Auditing Term and if requested by the City, Owner shall provide information and
documentation for the previous year that addresses Owner's compliance with each of the
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 November 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 if (i)
Owner fails to construct the Required Improvements as defined in Section 1.1.;
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 ABATEMENT BEGINS, (iv) HOME BUYER DOES
NOT COMPLY WITH CHAPTER 7 AND APPENDIX B OF THE CODE OF
ORDINANCE OF THE CITY OF FORT WORTH (collectively, each an "Event of
)efault").
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 sixty (60) 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 ninety (90)
calendar days from the original date of receipt of the written notice, or (ii) if Owner
reasonably believes that Owner will require more than ninety (90) days to cure the Event
A Default, after advising the City Council in an open meeting of Owner's efforts and
intent to cure, such additional time, if any, as may be offered by the City Council in its
sole discretion.
4.3. Termination for E
If an Event of Default which is defined in Section 4.1 has not been cured within
the time frame specifically allowed under Section 4.2, the City shall have the right to
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 (iii)
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,
upon termination of this Agreement for any Event of Default, Owner shall not be eligible
for the Abatement for the remaining Term and Owner shall pay the City, as liquidated
damages, all taxes that were abated in accordance with this Agreement for each year
when an Event of Default existed and which otherwise would have been paid to the City
in the absence of this Agreement. The City and Owner agree that this amount is a
reasonable approximation of actual damages that the City will incur as a result of an
uncured Event of Default and that this Section 4.3 is intended to provide the City with
compensation for actual damages and is not a penalty. This amount may be recovered by
the City through adjustments made to Owner's ad valorem property tax appraisal by the
appraisal district that has jurisdiction over the Premises. Otherwise, this amount shall be
due, owing and paid to the City within sixty (60) days following the effective date of
termination of this Agreement. In the event that all or any portion of this amount is not
paid to the City within sixty (60) days following the effective date of termination of this
Agreement, Owner shall also be liable for all penalties and interest on any outstanding
amount at the statutory rate for delinquent taxes, as determined by the Code at the time of
the payment of such penalties and interest (currently, Section 33.01 of the Code).
4.4. Termination at Will.
If the City and Owner mutually determine that the development or use of the
Premises or the anticipated Required Improvements are no longer appropriate or feasible,
or that a higher or better use is preferable, the City and Owner may terminate this
Agreement in a written format that is signed by both parties. In this event, (i) if the Term
has commenced, the Term shall expire as of the effective date of the termination of this
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 & Lipuor Stores or Package Stores.
a. Owner understands and agrees the City has the right to terminate this
agreement if the Project contains or will contain a sexually oriented business.
b. Owner understands and agrees that the City has the right to terminate this
agreement as determined in City's sole discretion if the Project contains or will contain a
liquor store or package store.
5. EFFECT OF SALE OF PREMISES.
Except for an assignment to Neighborhood Homes or any other builder or
developer approved by the Housing and Economic Development Department Director, or
Owner's first mortgagee or to a homebuyer who will use the Required Improvements as its
primary residence or the homeowner's mortgagee which City Council hereby agrees to,
this Abatement cannot be assigned without the prior consent of the City Council, which
consent shall not be unreasonably withheld provided that (i) the City Council finds that the
proposed assignee is financially capable of meeting the terms and conditions of this
Agreement and (ii) the proposed purchaser agrees in writing to assume all terms and
conditions of Owner under this Agreement. Owner may not otherwise assign, lease or
convey any of its rights under this Agreement. Any attempted assignment without the City
Council's prior consent shall constitute grounds for termination of this Agreement and the
Abatement granted hereunder following ten (10) calendar days of receipt of written notice
from the City to Owner.
Upon assignment to Owner's first mortgagee, or to a homebuyer who will use the
Required Improvements as its primary residence or the homeowner's mortgagee,
Owner shall have no further obligations or duties under this agreement. In addition,
upon assignment to any other entity with the written consent of City Council, Owner
shall have no further duty or obligation under this agreement.
THE EVENT OF A SALE OR ASSIGNMENT.
6.
7.
THE FAILURE OF OWNER TO SEND THE CITY NOTIFICATION OF THE
SALE OF THE REQUIRED IMPROVEMENTS AND EXECUTION OF THE
ASSIGNMENT OF THIS AGREEMENT WITH THE NEW OWNER WITHIN 30
DAYS OF THE TRANSFER OF OWNERSHIP OF THE REQUIRED
IMPROVEMENTS SHALL RESULT IN THE AUTOMATIC TERMINATION OF
THIS AGREEMENT. THE NOTICE AND EXECUTED ASSIGNMENT MUST BE
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
Owner:
KT Land, LTD
KT Land Management, LLC, General Partner
2801 Bledsoe Street
Fort Worth, TX 76107
Housing and Economic Development Department
AUna Jay Chapa, Director
1000 Throckmorton
Fort Worth, Texas 76102
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.
A portion or all of the Premises and/or Required Improvements may be eligible
for complete or partial exemption from ad valorem taxes as a result of existing law or
future legislation. This Agreement shall not be construed as evidence that such
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-22561 on December 4, 2001, 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
without default (or if an Event of Default exists, the nature of the Event of Default and
curative action taken and/or necessary to effect a cure), the remaining term of this
Agreement, the levels and remaining term of the Abatement in effect, and such other
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, regulations or policies of the City. Venue for any
action under this Agreement shall lie in the State District Court of Tarrant County, Texas.
This Agreement is performable in Tarrant County, Texas.
7.9. Severability.
If any provision of this Agreement is held to be invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions shall not in any way
be affected or impaired.
7.10. 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.
7.11. Entirety of Agreement.
This Agreement, including any exhibits attached hereto and any documents
incorporated herein by reference, contains the entire understanding and agreement
between the City and Owner, their assigns and successors in interest, as to the matters
contained herein. Any prior or contemporaneous oral or written agreement is hereby
declared null and void to the extent in conflict with any provision of this Agreement.
This Agreement shall not be amended unless executed in writing 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 day of 2010, by the City of Fort Worth,
Texas.
EXECUTED thisr day of , 2010, by KT Land, LTD., KT Land
Management, LLC, General Par+r.
CITY OF FORT WORTH:
By:
By:
T.M. Higgins � �
Assistant City Manager
ATTEST:
By:
City Secretary
APPROVED AS TO FORM AND LEGALITY:
By:
Charlene Sanders
Assistant City Attorney
OI�Fi��A� RFC®RD
CiTI� �FGRFTARX
FT, WORTH, TX
Manager
p�
C3
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared T.M. Higgins,
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.
VEN UNDER MY HAND AND SEAL OF OFFICE this LX day of
, 2010.
� MARIA S. SANCHEZ
or ; 1... �
Not Public in and for .; MY COMMISSION EXPIRES
December 1G, 2013
the State of Texas
Notary's Printed Name
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Tom L. Struhs of KT
.and, LTD., KT Land Management, LLC, General Partner, 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 KT Land, LTD., KT Land Management, LLC, General Partner.
ER MY HAND AND SEAL OF OFFICE this day of
. 2010.
ICI
the State of Texas
Notary's Printed Name
SARPJ� J.ODLE
MY COMMISSION 2p11RES
November 51
Ext l : NEZ Incentives
Exhibit 2: Property Description
Exhibit 3: Application: (NEZ) Incentives and Tax Abatement
Exhibit 4: Project description including kind, number and location of the proposed
improvements.
Exhibit 5: Final Survey
Exhibit "1"
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) TAX ABATEMENT POLICY AND BASIC
INCENTIVES
I. GENERAL PURPOSE AND OBJECTIVES
Chapter 378 of the Texas Local Government Code allows a municipality to create a
Neighborhood Empowerment Zone (NEZ) when a "...municipality determines that the creation
of the zone would promote:
(1) the creation of affordable housing, including manufactured housing, in the zone;
(2) an increase in economic development in the zone;
(3) an increase in the quality of social services, education, or public safety provided to
residents of the zone; or
(4) the rehabilitation of affordable housing in the zone."
The City, by adopting the following NEZ Tax Abatement Policy and Basic Incentives, will
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
the NEZ. For each NEZ, the City Council may approve additional terms and incentives as
permitted by Chapter 378 of the Texas Local Govemment Code or by City Council resolution.
However, any tax abatement awarded before the expiration of a NEZ shall carry its full term
according to its tax abatement agreement approved by the City Council.
As mandated by state law, the property tax abatement under this policy applies to the owners of
real property. Nothing in the policy shall be construed as an obligation by the City of Fort Worth
to approve any tax abatement application.
II. DEFINITIONS
"Abatement or Tax Abatement" means a full or partial exemption from City of Fort Worth ad
valorem taxes on eligible real and personal property located in a NEZ for a specified period on
the difference between (i) the amount of increase in the appraised value (as reflected on the
certified tax roll of the appropriate county appraisal district) resulting from improvements begun
after the execution of a written Tax Abatement Agreement and (ii) the appraised value of such
real estate prior to execution of a written Tax Abatement Agreement (as reflected on the most
recent certified tax roll of the appropriate county appraisal district for the year prior to the date
on which the Tax Abatement Agreement was executed).
"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.
Adopted 5/ 19/2009 1
"Capita! Investment" includes only real property improvements such as new facilities and
structures, site improvements, facility expansion, and facility modernization. Capital Investment
does NOT include land acquisition costs and/or any existing improvements, or personal property
(such as machinery, equipment, and/or supplies and inventory).
"City of Fort Worth Tax Abatement Policy Statement" means the policy adopted by City Council
on February 29, 2000.
"CommerciaUlndustrial 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.
"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.
"Eligible Rehabilitation" includes only physical improvements to real property. Eligible
Rehabilitation does NOT include personal property (such as furniture, appliances, equipment,
and/or supplies).
"Gross Floor Area" is measured by taking the outside 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 that has received certification as either a certified MBE or cert�ed
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
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", "CommerciaUlndustrial Development
Project" "Community Facility Development Project", "Mixed -Use Development Project'; or a
"Multi -family Development Project."
"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
Adopted 5/19/2009 2
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,
111. 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. 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.
8. MULTI -FAMILY DEVELOPMENT PROJECTS LOCATED IN A NEZ
Adopted 5/ 19/2009 3
1. 100%Abatement for 5 vears.
If an applicant applies for a tax abatement aareement with a term of flue vears or
less, this section shall apply.
Abatements for multi -family development projects for up to 5 years are subject to
City Council approval. The applicant may apply with the Housing and Economic
Development Department for such abatement.
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 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 shalt be at least
30% of the Base Value of the property. Such Eligible Rehabilitation costs
must come from the rehabilitation of at least five (5) residential living units or
a minimum Capital Investment of $200,000.
2. 1 %-100% Abatement of City Ad Valorem taxes uo to 10 vears
If an applicant applies for a tax abatement aareement with a term of more than five
vears. this section shall apply.
Abatements for multi -family development projects for up to 10 years are subject to
City Council approval. The applicant may apply with the Housing and Economic
Development Department for such abatement.
Years 1 through 5 of the Tax Abatement Agreement
Multi -family projects shall be eligible for 100% abatement of City ad valorem taxes
for years one through five of the Tax Abatement Agreement upon the satisfaction of
the following:
At least twenty percent (20%) of the total units constructed 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
Adopted 5/19l2009
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 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 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 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 least 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;
20 utilization of certified minority and women owned business enterprises for an
agreed upon percentage of the total costs for construction contracts,
3* property inspection;
4* commit to hire an agreed upon percentage of Fort Worth residents
5. commit to hire an agreed upon percentage of Central City residents
6. landscaping;
70 tenant selection plans, and
80 management plans.
C. COMMERCIAL, INDUSTRIAL AND COMMUNITY FACILITIES DEVELOPMENT
PROJECTS LOCATED IN A NEZ
Adopted 5/19/2009 5
1. 100%Abatement of City Ad Valorem taxes for 5 vears
If an applicant applies for a tax abatement agreement with a term of five vears or
less, this section shall 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 and Economic Development Department for such abatement.
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, it must be rehabilitated after NEZ designation. Eligible
Rehabilitation costs on the property shall be at least 30% of the Base Value of
the property, or $75,000, whichever is greater.
2. 1 %-100% Abatement of Citv Ad Valorem taxes up to 10 vears
If an applicant applies for a tax abatement a4reement with a term of more than five
vears, this section shall apply.
Abatements agreements for a Commercial, Industrial and Community Facilities
Development projects for up to 10 years are subject to City Council approval. The
applicant may apply with the Housing and Economic Development Department for
such abatement.
Years 1 through 5 of the Tax Abatement Agreement
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, 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.
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
Adopted 5/19/2009
L
Investment of $75,000 and must meet the requirements of subsection (c)
below ; or
b. For a rehabilitation project, it must be rehabilitated after NFL designation.
Eligible Rehabilitation costs on the property shall be at least 30% of the
Base Value of the property, or $75,000, whichever is greater and meet
the requirements of subsection (c) below.
c. Any other terms as City Council of the City of Fort Worth deems
appropriate, including, but not limited to:
1. utilization of Fort Worth companies for an agreed upon percentage of
the total costs for construction contracts;
2. utilization of certified minority and women owned business enterprises
for an agreed upon percentage of the total costs for construction
contracts;
3. commit to hire an agreed upon percentage of Fort Worth residents;
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. 100% Abatement of City Ad Valorem taxes for 5 years
If an applicant applies for a tax abatement a4reement with a term of five years or
less, this section shall apply.
Abatements for Mixed -Use Development Projects for up to 5 years are subject to
City Council approval. The applicant may apply with the Housing and Economic
Development Department for such abatement.
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, and/or retail sales and service uses in the
project constitute 10 percent or more of the total Gross Floor Area of the project;
and
(1) A mixed -use development project constructed after NEZ designation must
have a minimum Capital Investment of $200,000; or
(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. 1 %-100% Abatement of City Ad Valorem taxes up to 10 years
If an applicant applies for a tax abatement a4reement with a term of more than five
years, this section shall apply.
Adopted 5/19/2009
7
Abatements agreements for a Mixed Use Development projects for up to 10 years
are subject to City Council approval. The applicant may apply with the Housing and
Economic Development Department for such abatement.
Years 1 through 5 of the Tax Abatement Agreement
Mixed Use 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. Residential uses in the project constitute 20 percent or more of the total Gross
Floor Area of the project; and
b. Office, eating and entertainment, and/or retail sales and service uses in the
project constitute 10 percent or more of the total Gross Floor Area of the project;
and
c. Anew mixed -use development project constructed after NEZ designation must
have a minimum Capital Investment of $200,000; or for a rehabilitation project, it
must be rehabilitated after NF_Z 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.
Years 6 through 10 of the Tax Abatement Agreement
Mixed Use 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. Residential uses in the project constitute 20 percent or more of the total Gross
Floor Area of the project; and
b. Office, eating and entertainment, and/or retail sales and service uses in the
project constitute 10 percent or more of the total Gross Floor Area of the project;
c. Anew mixed -use development project constructed after NEZ designation must
have a minimum Capital Investment of $200,000; or 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; and
d. Any other terms as City Council of the City of Fort Worth deems appropriate,
including, but not limited to:
1. utilization of Fort Worth companies for an agreed upon percentage of the
total costs for construction contracts;
2. utilization of certified minority and women owned business enterprises for
an agreed upon percentage of the total costs for construction contracts;
3. 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;
Adopted 5/19/2009
E:?
7. tenant selection plans; and
8. management plans.
E. ABATEMENT GUIDELINES
1. If a NEZ is located in a Tax Increment Financing District, City Council will determine
on a case -by -case basis if the tax abatement incentives in Section III will be offered
to eligible Projects. Eligible Projects must meet all eligibility requirements specified
in Section III.
2. A tax abatement shall not be granted for any development project in which a
building permit application, excluding grading and/or demolition, has been filed with
the City's Planning and Development Department. In addition, the City will not abate
taxes on the value of real or personal properly for any period of time prior to the year
of execution of a Tax Abatement Agreement with the City.
3. If a Project is located in the Woodhaven Neighbofiood Empowerment Zone, in
order to be considered "eligible° to apply for a tax abatement under this Policy, the
Woodhaven Community Development Corporation and the Woodhaven
Neighbofiood Association must have submitted a letter of support for the Project to
the City of Fort Worth
4. In order to be eligible to apply for a tax abatement, the property owner/developer
must:
a. Not be delinquent in paying property taxes for any property owned by the
owner/developer, except that an owner/developer may enter into a tax
abatement agreement with the city of Fort Worth for a specific Project if:
1. the Project meets NEZ tax abatement criteria; and
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
b. Not have any City of Fort Worth liens filed against any property owned by the
applicant property owner/developer. "Liens° include, but are not limited to, weed
liens, demolition liens, board-up/open structure liens and paving liens.
5. Projects to be constructed on property to be purchased under a contract for deed are
not eligible for tax abatements.
6. Once a NEZ property owner of a residential property (including multi -family) in the
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 terminate if the
property subject to the tax abatement agreement is in violation of the City of Fort
Worth's Minimum Building Standards Code and the owner is convicted of such
violation.
7 A tax abatement granted under the criteria set forth in Section III. can only be granted
once for a property in a NEZ for a maximum term of as specified in the agreement. If a
Adopted 5/19/2009 9
property on which tax is being abated is sold, the City may assign the tax abatement
agreement for the remaining term once the new owner submits an application so long
as the new owner complies with all of the terms of the tax abatement agreement.8 A
property owner/developer of a multifamily development, commercial, industrial,
community facilities and mixed -use development project in the NEZ who desires a 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
b. File an application with the Housing and Economic Development Department, as
applicable; and
c. The property owner must enter into a tax abatement agreement with the City of
Fort Worth. In addition to the other terms of agreement, the tax abatement
agreement shall provide that the agreement shall automatically terminate if the
owner receives one conviction of a violation of the City of Fort Worth's Minimum
Building Standards Code regarding the property subject to the abatement
agreement during the term of the tax abatement agreement; and
d. If a property in the NEZ on which tax is being abated is sold, the new owner may
enter into a tax abatement agreement on the property for the remaining term.
9. If the terms of the tax abatement agreement are not met, the City Council has the
right to cancel or amend the abatement agreement. In the event of cancellation, the
recapture of abated taxes shall be limited to the years) in which the default occur-ed
or continued.
10. The terms of the agreement shall include the City of Fort Worth's right to: (1) review
and verify the applicant's financial statements in each year during the life of the
agreement prior to granting a tax abatement in any given year, (2) conduct an on site
inspection of the project in each year during the life of the abatement to verify
compliance with the terms of the tax abatement agreement, (3) terminate the
agreement if the Project contains or will contain a sexually oriented business (4
terminate the agreement, as determined in City's sole discretion, if the Project
contains or will contain a liquor store or package store.
11. Upon completion of construction of the facilities, the City shall no less than annually
evaluate each project receiving abatement to insure compliance with the terms of the
agreement. Any incidents of non-compliance will be reported to the City Council.
On or before February 1st of every year during the life of the agreement, any
individual or entity receiving a tax abatement from the City of Fort Worth shall
provide infomnation and documentation which details the property owner's
compliance with the terms of the respective agreement and shall certify that the
owner is in compliance with each applicable term of the agreement. Failure to report
this information and to provide the required certification by the above deadline shall
result in cancellation of agreement and any taxes abated in the prior year being due
and payable.
12. If a property in the NEZ on which tax is being abated is sold, the new owner may
enter into a tax abatement agreement on the property for the remaining term. Any
sale, assignment or lease of the property which is not permitted in the tax abatement
Adopted 5/19/2009
10
agreement results in automatic cancellation of the agreement and recapture of any
taxes abated after the date on which an unspecified assignment occurred.
F. APPLICATION FEE
1. An application fee of $25.00 for all basic incentives, excluding tax abatements.
2. The application fee for residential tax abatements governed under Section III.A is
$100.
3. The application fee for multi -family, commercial, industrial, community facilities and
mixed -use development projects governed under Sections III.B., C. and D., is one-
half of one percent (0.5%) of the proposed Project's Capital Investment, with a $200
minimum not to exceed $2,000. The Application Fee shall not be credited or
refunded to any party for any reason.
IV. FEE WAIVERS
A. ELIGIBLE RECIPIENTS/PROPERTIES
1. City Council shall determine on a case -by -case basis whether a Project that will
contain or contains a liquor store or package store is eligible to apply for a fee
waiver.
2. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order
to be considered "eligible" to apply for a fee waiver under this Policy, the Woodhaven
Community Development Corporation and the Woodhaven Neighborhood
Association must have submitted a letter of support for the Project to the City of Fort
Worth --however, once the NEZ Plan is submitted for the Woodhaven NEZ, this will
no longer be required.3. Projects to be constructed on property to be purchased
under a contract for deed are not eligible for development fee waivers.
4. In order for a property owner/developer to be eligible to apply for fee waivers for a
Project, the property owner/developer:
a. must submit an application to the City;
b, must not be delinquent in paying property taxes for any property owned by the
owner/developer or applicant;
c, must not have any City liens filed against any property owned by the applicant
property owner/developer, including but not limited to, weed liens, demolition
liens, board-up/open structure liens and paving liens; and•
d. of a Project that will contain or contains a liquor store, package store or a sexually
oriented business has received City Council's determination that the Project is
eligible to apply for fee waivers.
Approval of the application and waiver of the fees shall not be deemed to be
approval of any aspect of the Proiect. Before construction, the applicant must
ensure that the Proiect is located in the correct zoninca district.
Adopted 5/19/2009
�'�
C.
V.
A.
DEVELOPMENT FEES
Once the Application for NEZ Incentives has been approved and certified by the City, the
following fees for services performed by the City of Fort Worth for Projects in the NEZ
are waived for new construction projects or rehabilitation projects that expend at least
30% of the Base Value of the property on Eligible Rehabilitation costs:
1. All building permit related fees (including Plans Review and Inspections)
2. Plat application fee (including concept plan, preliminary plat, final plat,
replat)
3. Board of Adjustment application fee
4. Demolition fee
5. Structure moving fee
6. Community Facilities Agreement (CFA) application fee
7. Zoning application fee
8. Street and utility easement vacation application fee
9. Ordinance Inspection Fees
10. Consent/Encroachment Agreement Application Fees
short form
Other development related fees not specified above will be considered for approval by
City Council on a case -by -case basis.
IMPACT FEES
1. Single family and multi -family residential development projects in the NEZ.
Automatic 100% waiver of water and wastewater impact fees will be applied.
2. Commercial, industrial, mixed -use, or community facility development projects in the
NEZ.
a. Automatic 100% waiver of water and wastewater impact fees up to $55,000 or
equivalent to two 6-inch meters for each commercial, industrial, mixed -use or
community facility development project.
b. If the project requests an impact fee waiver exceeding $55,000 or requesting a
waiver for larger and/or more than two 6-inch meter, then City Council approval is
required. Applicant may request the additional amount of impact fee waiver
through the Planning and Development Department.
RELEASE OF CITY LIENS
ELIGIBLE RECIPIENTSlPROPERTIES
1. Project must be located in a NEZ.
2. 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 receive a release of
City liens.
Adopted 5/19/2009
12
3. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order
to be considered "eligible" to apply for release of city liens under this Policy, the
Woodhaven Community Development Corporation and the Woodhaven
Neighborhood Association must have submitted a letter of support for the Project to
the City of Fort Worth —however, once the NEZ Plan is submitted for the Woodhaven
NEZ, this will no longer be required.
4. Projects to be constructed on property to be purchased under a contract for deed are
not eligible for any release of City Liens.
5. In order for a property owner/developer to be eligible to apply for a release of city
liens contained in Section V.B., C., D., and E. fora Project, the property
owner/developer:
a. must submit an application to the City;
b. must not be delinquent in paying property taxes for any property owned by the
owner/developer;
b. must not have been subject to a Building Standards Commission's Order of
Demolition where the properly was demolished within the last five (5) years;
c. must not have any City of Fort Worth liens filed against any other property owned
by the applicant property owner/developer. "Liens° includes, but is not limited to,
weed liens, demolition liens, board-up/open structure liens and paving liens; and
d. of a Project that contains or will contain a liquor store, package store or a sexually
oriented business has received City Council's determination the Project is eligible
to receive a release of City liens.
6. In order fora Rehabilitation Project to qualify for a release of city liens, the
owner/developer must spend Eligible Rehabilitation costs on the Property of at lease
30% of the Base Value of the Properly.
7. Liens shall be released once the Project Improvements have been made to the
property.
8. 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.
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 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.
Adopted 5/ 19/2009
13
D.
E.
VI.
A.
BOARD•UP/OPEN STRUCTURE LIENS
The following are eligible to apply for release of board-up/open structure liens:
1. Single unit owners performing rehabilitation on their properties.
2. Builders or developers constructing new single family homes on vacant lots.
3. Owners performing rehabilitation on multi -family, commercial, industrial, mixed -use,
or community facility properties.
4. Developers constructing multi -family, commercial, industrial, mixed -use, or
community facility projects.
PAVING LIENS
The following are eligible to apply for release of paving liens:
1. Single unit owners performing rehabilitation on their properties.
2. Builders or developers constructing new homes on vacant lots.
3. Owners performing rehabilitation on multi -family, commercial, industrial, mixed -use,
or community facility properties.
4. Developers constructing multi -family, commercial, industrial, mixed -use, or
community facility projects.
PROCEDURAL STEPS
APPLICATION SUBMISSION
1. 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 Planning and Development 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 Housing and Economic Development Department. 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 Planning and Development Department will review the application for accuracy
and completeness. Once the Planning and Development Department determines
that the application is complete, the Planning and Development Department will
certify the property owner/developer's eligibility tv receive tax abatements and/or
basic incentives based on the criteria set forth in Section III., IV., and V. of this policy,
as applicable. Once an applicant's eligibility is certified, the Planning and
Development 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 and Economic Development Department: property tax abatement for
residential properties and multi -family development projects, release of City liens.
Adopted 5/ 19/2009
14
C.
b. Housing and Economic Development Department: property tax abatementfor
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.
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 and Economic Development 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.
(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. 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 shalt execute a tax
abatement agreement with the applicant.
b. For a completed and certified application for more than five years of tax
abatement:
Adopted 5/19/2009
15
(1) The Housing and Economic Development 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/1111BEs).
(d) Other items which the City and the applicant may negotiate.
(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 Planning and Development Department will review the cert�ed
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 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 and Economic
Development Department will release the appropriate liens.
Adopted 5/19/2009
16
VII. REFUND POLICY
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
Planning and 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 owneNdeveloper 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 neighbofiood associations or community based organizations registered
with the city that are within 300 feet of the proposed Project. The
measurement of the distance between the proposed project and Neighbofiood
Associations or Community Based Organizations shall be along the property
lines of the street fronts and from front door to front door, and in direct line
across the intersections.
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 that are within 300 feet of the proposed
Project; or
2. meeting with the City Council Member for the District the Project is located and
Adopted 5/ 19/2009 � 7
upon the owner/developer providing proof that the owner/developer attempted to
meet with the neighborhood associations and the community based
organizations registered with the city within 300 feet of where the proposed
Project is located and the associations or organizations failed to arrange a
meeting with the owner/developer within two weeks of initial contact.
c.
X. Ineligible Projects
The following Projects or Businesses shall not be
Fort Worth's Neighborhood Empowerment Zone
Incentives:
1. Sexually Oriented Businesses
2. Non-residential mobile structures
eligible for any incentives under the City' of
(NEZ) Tax Abatement Policy and Basic
Adopted 5/19/2009
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 Neighbofiood
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. Ail building permit fees (including Plans Review and Inspections)
2. Plat application fee (including concept plan, preliminary plat, final plat, short form
repiat)
3. Board of Adjustment application fee
4. Demolition fee
5. Structure moving fee
6. Community Facilities Agreement (CFA) application fee
7. Zoning application fee
8. Street and utility easement vacation application fee.
To take advantage of these waivers, applicants need to obtain a certification letter from
the Planning and Development 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 Planning and Development
Department.
A property owner and/or developer may qualify for a refund if the proposed
development project meets ail 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 5/19/2009 19
c. The owner and/or developer has put funds in an escrow account with a City
Department while awaiting a decision from the City Council about his/her project;
or
d. City Council authorizes a City Department to issue a refund to the
owner/developer.
Refund Charge
A refund charge will be assessed to help defray administration cost associated with the
processing of refund check. The charge shall be 20% of the amount of the refund. This
charge will be automatically deducted from the total refund amount.
Statute of Limitations
Any request, action or proceeding concerning the refund of fees normally waived
through the NEZ must be filed within ninety days following the date that the fees were
paid. An applicant who does not submit a refund request within 90 days of the
transaction shall not qualify for a refund.
To obtain a refund the applicant needs to:
• submit a NEZ application to the Planning and Development 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 confimnation from the Planning and Development Department that the
project meets ail 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 5/19/2009
20
i
policy and other policies or regulations adopted by the City Department issuing the
refund, such department policies or regulations shall control. The City reserves the right
to deny any or all request for refunds.
Adopted 5/ 19/2009
21
Exhibit " 2"
Property Description
905 E. Broadway Avenue, Block 1 Lot 2 Less W4'9 JC Terrell Addition, in the City of Fort
Worth, Tarrant County, Texas, and as recorded in volume 63, page 156, Plat records, Tarrant
County, Texas.
Exhibit 3
FORT WORTH
Application No. 4, 0 /0 %
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) PROGRAM
PROJECT CERTIFICATION APPLICATION - FORM "A" FOR HOMEOWNERS
1. At'YL1l.A l 1V1\ l..rir.l.ri L1J 1
Please submit the following documentation:
❑ A completed application form
❑ A list of all properties owned by the applicant, owner, developer, associates, principals, partners, and
agents in Fort Worth
❑ Non Refundable Application fee — cashier's check or money order payable to the City of Fort Worth . For
all Basic Incentives applications excluding Tax Abatement $25.00. For multifamily, commercial, industrial,
commercial facilities, and mixed -use tax abatement applications: 0.5% of the total Capital Investment of
the project, with a $200.00 minimum and not to exceed $2,000.00; For residential tax abatement
applications: $100.00 per house.
❑ Proof of ownership, such as a warranty deed, affidavit of heirship, or a probated will OR evidence of site
control, such as option to buy (A registered warranty deed is required for tax abatement application.)
❑ Title abstract of the property (only if applying for release of City liens)
❑ A completed set of development plans, project description and development budget or contractor's quote
❑ Copy of Incorporation Papers noting all principals, partners, and agents
❑ Met with the Councilmember and Neighborhood &other Organizations representing the NEZ as outlined
in the Public Notice requirement of the NEZ Policy and Guidelines revised April 6, 2004 or followed
guidelines of NEZ Strategic Plan if a Strategic Plan is in place for the specific NEZ.
❑ Support letter from Woodhaven Neighborhood Association and Woodhaven Community Development
Corporation (For projects located in Woodhaven NEZ only)
INCOMPLETE APPLICATIONS WILL NOT BE PROCESSED FOR CERTIFICATION UNTIL ALL
REQUIRED DOCUMENTS SHOWN IN THE ABOVE CHECKLIST ARE SUBMITTED WITHIN 30 DAYS
AFTER THE APPLICATION IS RECEIVED.
YOU MUST APPLY FOR TAX ABATEMENT BEFORE ANY BUILDING PERMITS ARE ISSUED FOR
YOUR PROPERTY AND BEFORE ANY IMPROVEMENTS ARE MADE TO YOUR PROPERTY. IT
TAKES 30 TO 90 BUSINESS DAYS TO COMPLETE THE TAX ABATEMENT AGREEMENT
APPROVAL PROCESS AFTER THE ISSUANCE OF NEZ CERTIFICATION DEPENDING ON THE
COMPLEXITY OF YOUR PROJECT,
II. APPLICANT /AGENT INFORMATION
L
1. Applicant: K� Lai �,
�r/Z14 i30n) / dti[ts 2. Contact Person: aA/ �L
3. Address:�+Le�Sr f S% —` /1 'ZEc i I bz i tiic�riZ t r XA5 •%L /D 07
Street
4. Phone no.:
6. Email:
7. Agent (if any)
8. Address:
City State Zip
5. Fax No.: /rq, �7)
Street City State Zip
9. Phone no.* 99q-2to141G>�•-
11. Email•
If you need further information or clarification, please contact Mattie Sanders -Mitchell at (817) 3924336 or
Sarah Odle at (817) 392-7316.
FoR� H
PROJECT ELIGIBILITY
Application No.
1. Please list down the addresses and legal descriptions of the project and other properties your
organization owns in Fort Worth. Attach metes and bounds description if no address or legal
description is available. Attach an exhibit showing the location of the project.
Table 1 Pro er Ownershi
Address ZiP
Pro'ect Location Code Subdivision Name Lot No. Block No.
-- S E� k 7i•A � H F�
Other properties owned in the City of Fort Worth -continue on a separate sheet and attach if necessary. �
r
(Please attach additional sheets of paper as needed.)
2. For each properties listed in Table 1, please check the boxes below to indicate if:
• there are taxes due; or
• there are City liens; or
You (meaning the applicant, developer, associates, agents, principals) have been subject to a Building
Standards Commission's Order of Demolition where the property was demolished within the last five
years.
Table 2 Pro er Taxes and Ci Liens
Address Property City Liens on Property
Taxes Weed Board-up/Open Demolition Paving Order of
• Due Liens Stucture Liens Liens Liens Demolition
'� 5E� �'iAeHET�
(Please attach additional sheets of paper as needed.)
FORT WORTH
3. Do you own other properties under other names?
If Yes, please specify
to Does the proposed project
Application No.
❑ YesI..000j No
If no, what steps are being taken to insure compliance?
5. Project Type: /❑ ❑ ❑ ❑ ❑ ❑
Single Multi= Commercial Industrial Community Mixed -Use
Family Family Facilities
6. If your project is a commercial, industrial, or mixed -use project, please describe the types of
businesses that are being proposed:
7. Is this a new construction or rehab project?
,M New Construction
8. How much is the total development cost of your project?
9. Will the eligible rehabilitation works equal to at least 30•/. of the Tarrant
assessed value of the structure dnring the year rehabilitation occurs?
■seal District (TAD)
Yes ❑ No
* Eligible rehabilitation includes only physical improvemetrts to real property. It does NOT include personal
property such as furniture, appliances, equipment, and/or supplies. Total eligible rehabilitation costs shall equal to
or exceed 30% of the TAD appraised value of the sbucture during the year rehabilitation occurs.
10. How much is the total square footage of your project? 7� C �� square feet
number of residential nnita based on income range of owners or renters in the following table.
. Number of Units � - .. Pemeirtage
Income Ran
> 80% of AMFI**
At or below 80% of AMFI
Total>Units
12. For s multifamily project to be qualified for tax abatement, at least 20% of total units shall be
affordable to families at or below 80°/. of AMFL Check the box if you are requesting a waiver of this
requirement. El13. For a commercial. industrial or community facilities oroiect indicate square footage of non-
residential space.
Commercial
Industrial
Community Facilities
square feet
PLEASE ANSWER QUESTIONS N0.14 TO NO. 16 ONLY IF YOU ARE APPLYING FOR TAX
ABATEMENT.
Revised September 6, 2007
3
12. For s multifamily project to be qualified for tax abatement, at least 20% of total units shall be
affordable to families at or below 80°/. of AMFL Check the box if you are requesting a waiver of this
requirement. El13. For a commercial. industrial or community facilities oroiect indicate square footage of non-
residential space.
Commercial
Industrial
Community Facilities
square feet
PLEASE ANSWER QUESTIONS N0.14 TO NO. 16 ONLY IF YOU ARE APPLYING FOR TAX
ABATEMENT.
Revised September 6, 2007
3
FORT WORTH
Application No.
14. How much will be your Capital Investments*i on the project? Please use the following table
provide the details and amount of your Capital Investment (Attached additional sheets if necessary).
T$bte 4 Capital Investment of the Proiect
to
Items
Amount
Notes
%L °i 53 L, .
Total
---c:apitai investment utctuaes onty rear property improvements such as new facilities and structures, site improvements, facili
expansion, and facility modernization. Capital Investment DOES NOT include land acquisition costs and/or any existing
improvements, or personal property (such as machinery, equipment, and/or supplies or inventory).
I i 11 11 1 1 1 1 11 11 I I' , 1 11 -1 i i 1 1 1 11 1 II 1 1 1
project
1 For a mixedwase proiecl, please indicate the percentage I all I i 1 project I following 1
rable 5 Percentage 1 Uses in a MixedMixedftUse Project
T
ype=,
SgnarcFootagew
Percentage'.
Residential
Office
Eating
Entertainment
Retail sales
Service
Total , <.
1. What incentive are you applying for?
Municipal Proocrty Taz Abatements
Must provide Final Plat Cabinet and Slide for Tax Abatement Cabinet Slide_
Er 5 yew ❑ More than 5 years
Development Fee Waivers
Q All building permit related fees (including Plans Review and Inspections)
/(Q Plat application fee (including concept plan, preliminary plat, final plat, short form replat)
Q Board of Adjustment application fee
Q Demolition fee
Q Structure moving fee
�J Community Facilities Agreement (CFA) application fee
Zoning application fee
Q Street and utility easement vacation application fee
Impact Fee Waivers
❑ Impact fee _
Release of City Liens
Q Weed liens
Q Board up/open structure liens
R
Meter Size
%
-' No. of meters?
�
Q Paving liens
❑� Demolition liens
Revised September 6, 2007 4
FORT WORTH
Application No.
III. ACKNOWLEDGMENTS
I hereby certify that the information provided is true and accurate to the best of my knowledge. I hereby
acknowledge that I have received a copy of NEZ Basic Incentives, which governs the granting of tax abatements, fee
waivers and release of City liens, and that any VIOLATION of the terms of the NEZ Basic Incentives or
MISREPRESENTATION shall constitute grounds for rejection of an application or termination of incentives at the
discretion of the City.
I understand that the approval of fee waivers and other incentives shall not be deemed to be approval of any aspect of
the project. I understand that I am responsible in obtaining required permits and inspections from the City and in
ensuring the project is located in the correct zoning district.
I understand that my application will not be processed if it is incomplete. I agree to provide any additional
information for determining eligibility as requested by the City.
Application No.
�P
(AUTHORIZED SIGNATURE)
In which NEZ?
For Office Use only
Application will Date (Received Date):
Type? ❑ SF ❑ Multifamily LiCommercial LiIndustrial
Construction completion date? ❑ Before NEZ ❑ After NEZ
TAD Account No.
Meet affordability test?
Rehab at or higher than 30%?
Tax current on this property?
City liens on this property?
• Weed liens
faBoard-up/open structure liens
• Demolition liens
• Paving liens
• Order of demolition
Certified? ❑Yes ❑ No
If not certified, reason
Referred to:
IJ
5/ o
TE)
❑ Yes ❑No
❑ Mixed -Use
❑ Yes El No
Consistent with the NEZ plan? ❑ Yes ❑ No
❑ Yes ❑ No Minimum Capital Investment? ❑Yes ❑ No
❑ Yes ❑ No Meet mixed -use definition? El Yes ❑ No
❑ Yes ❑ No Tax current on other properties? El Yes ❑ No
City liens on other properties?
❑ Yes ❑ No • Weed liens ❑ Yes ❑ No
❑ Yes ❑ No • Board-up/open structure liens ❑ Yes ❑ No
❑ Yes El No • Demolition liens El Yes ❑ No
❑ Yes ❑ No • Paving liens ❑ Yes ❑ No
❑ Yes ❑ No • Order of demolition El Yes ❑ No
Certified by Date certification issued?
Council District
_ Conform with Zoning?
❑ Community facilities
Ownership/Site Control
Revised September 6, 21i07 g
Exhibit 4"
Project Description
New construction —Single Family Home
Minimum 1065 Square Feet of living space
Real Estate
Account Number: 03216241
eoreference: 44120-2142
Property Location: 1133 Bessie St, Fort Worth
Gwrier Information: Kt Land Ltd
1209 E Belknap St
Fort Worth Tx 76102-2406
Legal Description: Union Depot Addition
Blk 21 Lot 12
Taxing Jurisdictions: 026 City of Fort Worth
099 Regional Water District
220 Tarrant County
224 Tarrant County Hospital Dist
225 Tarrant County College Dist
905 Fort Worth ISD
This information is intended for reference only and I$ subject to change. It may not accurately reflect the complete status of the account as actually
carried in TAD'S database.
Proposed Values for Tax Year 2010
•
,
Iylyy�lu�
0
i-appraised value may be less than market value due to state -mandated limitations on value increases
`* A zero value indicates that the property record has not yet been completed for the indicated tax year
°**f2ounded
5-Year Value History
11:
fit
to
fig
Exemptions: None
Property Data
Deed Date: 06/16/2010
Instrument: D210148499
Year Built; 0000
Pct Complete: 100
TAD Map: 2054 388
APSC®: 077G
Agent: None
Protest Deadline: 06/01/2010 Protest Filed
istoriSit
Hc e
Class: 000
State Code: C1 Res Vacant
Garage Bays: 00
Central Air: N
Central Heat: N
Pool: N
m,
�'' M&C Review
Page t of 3
• J(ficial site of the City of Fort Worth, Texas
FORT WORTN
CITY OUNCIL AGENDA -�-
COUNCIL ACTION: Approved on 12/4/2007
DATE: 12/4/2007 REFERENCE C-22561 LOG NAME: 05NEIGHBORHOOD
NO.:
NON- PUBLIC
CODE: C TYPE: CONSENT HEARING: NO
SUBJECT: Authorize Execution of a Five Year Tax Abatement Agreement with KT Land, LTD, a Texas
Limited Par#nership, and Neighborhood Homes for 50 Single -Family Homes Located in the
Evans and Rosedale Neighborhood Empowerment Zone
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager to enter into afive-year Tax Abatement Agreement with KT Land, LTD, and
Neighborhood Homes for the properties listed in Exhibit "A" in accordance with the NEZ Tax Abatement
Policy and Basic Incentives, contingent upon approval of house plans by the Historic and Cultural
Landmarks Commission; and
2. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement with KT Land,
LTD, a Texas Limited Partnership, and Neighborhood Homes, are true and correct:
DISCUSSION:
KT Land, LTD, and Neighborhood Homes, are the owners/developers of the 50 properties listed in Exhibit
"A." This real property is located in the Evans/Rosedale NEZ and Neighborhood Empowerment
Reinvestment Zone (NERZ No. 4). KT Land, LTD, and Neighborhood Homes have applied for afive-year
municipal property tax abatement under the NEZ Tax Abatement Policy and Basic Incentives (Resolution
No. 3487, 05-2007), as amended. The NEZ Program offers afive-year municipal property tax abatement on
the increased value of improvements to the qualified owner of any new construction within a NEZ. The
Housing Department has reviewed the application and certified that the property meets the eligibility criteria
to receive NEZ municipal property tax abatement.
KT Land, LTD, and Neighborhood Homes, will invest a minimum of $4,495,000 to construct 50 single-family
homes in the Evans/Rosedale NEZ. In order for Neighborhood Homes, or any other developer or builder
approved by the City Manager or his designee to qualify for the tax abatement, they must construct homes
with a minimum of 1065 square feet of living space or greater which will appraise for a minimum of $89,900.
A more detailed description of the homes to be constructed and sample drawings are attached as Exhibit
"B." The Agreement is attached as Exhibit "C."
The properties listed in Exhibit A are also in the Terrell Heights Historic District. Neighborhood Homes will
be presenting the house plans to the Historic and Cultural Landmarks Commission (HCLC) at the
December 10, 2007 meeting. The tax abatements will be contingent upon the HCLC giving approval of the
http://apps.cfwnet.org/council�acket/mc review.asp?ID=8792&councildate=l2/4/2007
09/25/2009
M&C Review
plans.
['age 2 of 3
Upon execution of the tax abatement agreement, the total assessed value of each home used for
calculating municipal property tax will be frozen for afive-year period, starting on the date the home is sold
to a homebuyer to be used as a primary residence, at the pre -improvement value as defined by the Tarrant
Appraisal District (TAD) on January 1, 2007, as follows:
Pre -Improvement TAD Value of Improvements $ 0.00
Pre -Improvement Estimated Value of Land 1 500.00
Total Pre -Improvement Estimated Value $ 1500.00
The municipal property tax on the improved value is estimated at $615 per house, per year, for a total of
$3,075 over the five-year period for each house. However, this estimate may be different from the actual tax
abatement value, which will be calculated based on the TAD appraised value of the property.
The tax abatement agreement provides that the agreement may be assigned without subsequent City
Council approval to Neighborhood Homes, or another builder approved by the City Manager or his
designee or the developer's first mortgage, or to a homebuyer who will use the required improvements as
his/her primary residence, or to the homeowner's mortgagee. All other assignments must be approved by
City Council. The agreement also provides that the failure of the owner to send the City notification of the
sale of the required improvements and the executed assignment of the agreement with the new owner
within 30 days of the transfer of ownership of the required improvements shall result in the automatic
termination of the Agreement.
The properties are located in COUNCIL DISTRICT 8.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that this action will have no material effect on City funds.
TO Fund/Account/Centers
Submitted for City Manager's Office �:
Originating Department Head:
Additional Information Contact:
FROM Fund/Account/Centers
Dale Fisseler (6140)
Jerome Walker (7537)
Sarah Odle (7316)
http://apps.cfwnet.org/council�acket/mc review.asp?TD=8792&councildate=l2/4/2007 09/25/2009
. `� M&C Review Page 3 of 3
ATTACHMENTS
Continued.Exhibt_B fo_r._M&C.pdf
Exhibit B for M&C.doc
Final Exhibit A for M&C.doc
Final TA Agreement for M&C.doc
KTLand Ma�pdf
http://apps.cfwnet.org/council�acket/mc review.asp?ID=8792&councildate=l2/4/2007 09/25/2009
Exhibit A
Propegy Legal Description
1. 1200 E. Tucker Street; Lot 1, Block 32, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 63, Page 45, of the Plat
Records of Tarrant County, Texas.
2. 1220 Stella Street; Lot 6, Block 34, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas according to the plat recorded in Volume 63, Page 45, of the Plat
Records of Tarrant County, Texas.
3. 1119 E. Leuda Street; Lot 16, Block 26, Union Depot Addition, to the City of Fort
Worth, Tarrant County, Texas, according to the plat recorded in Volume 63, Page 45, of
the Plat Records of Tarrant County, Texas,
4. 1116 E. Cannon St.; Lot 5, Block 26, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 63, Page 45, of the Plat
Records of Tarrant County, Texas.
5. 1127 E. Cannon St.; Lot 14, Block 25, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 63, Page 45, of the Plat
Records of Tarrant County, Texas.
6. 1029 E. Cannon St.; Lot 13, Block 10, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 63, Page 45, of the Plat
Records of Tarrant County, Texas.
7. 1029 E. Tucker St.; Lot 12, Block 13, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 63, Page 45, of the Plat
Records of Tarrant County, Texas
8. 1033 E. Tucker St.; Lot 13, Block 13, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 631 Page 459 of the Plat
Records of Tarrant County, Texas.
9. 1101 E. Hattie St., Lot 20, Block 24, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 63, Page 45, of the Plat
Records of Tarrant County, Texas.
10. 1237 E. Stella St., Lot 11, Block 35, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 63, Page 45, of the Plat
Records of Tarrant County, Texas. Save and Except that portion conveyed to the City of
Fort Worth by deed dated April 14, 1936, recorded in Volume 1276, Page 168, Deed
Records, Tarrant County, Texas.
11. 1233 E. Stella St., Lot 12, Block 35, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 63, Page 45, of the Plat
Records of Tarrant County, Texas. Save and Except that portion conveyed to the City of
Fort Worth by deed dated April 14, 1936, recorded in Volume 1276, Page 168, Deed
Records, Tarrant County, Texas,
11 1229 E. Stella at., Lot 13, Block 35, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 63, Page 45, of the Plat
Records of Tarrant County, Texas. Save and Except that portion conveyed to the City of
Fort Worth by deed dated April 14, 1936, recorded in Volume 1276, Page 168, Deed
Records, Tarrant County, Texas.
13. 1225 E. Stella St., Lot 14, Block 35, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 63, Page 45, of the Plat
Records of Tarrant County, Texas. Save and Except that portion conveyed to the City of
Fort Worth by deed dated April 14, 1936, recorded in Volume 1276, Page 168, Deed
Records, Tarrant County, Texas,
14. 1221 E. Stella St., Lot 15, Block 35, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 63, Page 45, of the Plat
Records of Tarrant County, Texas. Save and Except that portion conveyed to the City of
Fort Worth by deed dated April 14, 1936, recorded in Volume 1276, Page 168, Deed
Records, Tarrant County, Texas,
15. 1031 E. Hattie St., Lot 13, Block 11, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 63, Page 45, of the Plat
Records of Tarrant County, Texas.
16. 1104 E. Hattie St., Lot 2, Block 25, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 63, Page 45, of the Plat
Records of Tarrant County, Texas.
17. 815 E. Leuda St.; West 50 feet of Lots 7 and 8, Block 4, Veal's Addition to the City of
Fort Worth, Tarrant County, Texas, according to the plat recorded in Volume F, Page
308, according to the Plat Records of Tarrant County, Texas.
18. 1315 E. Leuda St.; Lot 11, Block 45, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 63, Page 45, of the Plat
Records of Tarrant County, Texas,
D
1137 Bessie St., Lot 11, Block 21, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the deed recorded in Volume 11851, Page 2371, of
the Deed Records of Tarrant County, Texas.
20. 932 E. Leuda St.; Lot 9, Block 7, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 63, Page 45, of the Plat
Records of Tarrant County, Texas.
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1015 E. Annie St.; Lot 17, Block 12, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the deed recorded in Volume 2137, Page 412, of the
Deed Records of Tarrant County, Texas.
2 978 E. Pulaski St.; Lot 15, Guertlers Subdivision, to the City of Fort Worth, Tarrant
County, Texas, according to the deed recorded in Volume 1776, Page 283, of the Deed
Records of Tarrant County, Texas.
1326 Missouri St.; Lot 9, Block 2, J.C. Ryan Subdivision to the City of Fort Worth,
Tarrant County, Texas, according to the deed recorded in Volume 1262, Page 494 of the
Deed Records of Tarrant County, Texas,
24. 1224 E. Annie St., Lot 7, Block 31, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 63, Page 45, of the Plat
Records of Tarrant County, Texas.
25. 1315 E. Bessie St.; Lot10, Block 40, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 63, Page 45, of the Plat
Records of Tarrant County, Texas.
26. 926 E. Dashwood St.; West 49 feet of the East 2/3 of the North %2 of Lot 5, Block 4,
Evans South (Krause) Addition, to the City of Fort Worth, Tarrant County, Texas,
according to the plat recorded in Volume 36, Page 83, of the Plat Records of Tarrant
County, Texas,
27. 1219 E. Bessie St.; East 33 feet of Lot 16, Block 34, Union Depot Addition, to the City of
Fort Worth, Tarrant County, Texas, according to the plat recorded in Volume 63, Page
45, of the Plat Records of Tarrant County, Texas.
28. 1320 E. Leuda St.; Lot 6, Block 46, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 63, Page 45, of the Plat
Records of Tarrant County, Texas.
29. 1316 E. Leuda St.;Block 46, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 63, Page 45, of the Plat
Records of Tarrant County, Texas.
30. 1201 E. Hattie St.; Lot 20, Block 31, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 63, Page 45, of the Plat
Records of Tarrant County, Texas.
31 1133 E. Bessie St.; Lot 12, Block 21, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the deed recorded in Volume 10192, Page 530, of
the Deed Records of Tarrant County, Texas.
32. 1108 E. Annie St.; Lot 3, Block 24, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the deed recorded in Volume 11838, Page 726, of
the Deed Records of Tarrant County, Texas,
)33 1009 E. Hattie St.; Lot 18, Block 11, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the deed recorded in Volume 10183, Page 1002, of
the Deed Records of Tarrant County, Texas.
)City
1318 Pulaski St.; Lot 4 and the West 10 feet of Lot 5, Block 8, Vickery Addition to the
of Fort Worth, Tarrant County, Texas, according to the deed recorded in Volume
3778, Page 588, Deed Records of Tarrant County, Texas.
35. 918 E. Dashwood St.; West 50 feet of the East 100 feet of Lot 1, Block 4; A. Krause
Subdivision of Evans South, an addition to the City of Fort Worth, Tarrant County,
Texas, according to the plat thereof recorded in Volume 36, Page 83, of the Plat Records
of Tarrant County, Texas.
36. 928 E. Pulaski St.; East 50 feet of the West 100 feet of the North %s of Lot 6, Block 4, A.
Krause Subdivision of Evans South, an addition to the City of Fort Worth, Tarrant
County, Texas, according to the plat thereof recorded in Volume 36, Page 83, of the Plat
Records of Tarrant County, Texas.
37. 1201 E. Tucker St.; Lot 20, Block 33, Union Depot Addition, an Addition to the City of
Fort Worth, Tarrant County, Texas, according to the plat recorded *in Volume 63, Page
45, of the Plat Records of Tarrant County, Texas.
38. 1058 Pulaski; A portion of Lot 1, Block 5, Tyler's Lake Park Place Addition to the City
of Fort Worth, Tarrant County, Texas, according to the plat recorded in Volume 46, Page
215, of the Plat Records of Tarrant County, Texas,
39. 914 Stella St.; Lot 2R, Block 5, JC Terrell Addition, to the City of Fort Worth, Tarrant
County, Texas, according to the plat recorded in Volume 388101, Page 5 I Plat Records,
Tarrant County, Texas.
40. 1001 E. Tucker St.; All of Lot 20 and a portion of Lot 19, Block 13, Union Depot
Addition, to the City of Fort Worth, Tarrant County, Texas, according to the plat
recorded in Volume 63, Page 45, Plat Records, Tarrant County, Texas.
41. 1000 E. Terrell Ave.; Lot 1, Block 1, Forbes and Teas Subdivision of Blocks 1 and 3 of
Zabriskas Addition to the City of Fort Worth, Tarrant County, Texas, according to the
plat recorded in Volume 310, Page 37, Plat Records, Tarrant County, Texas.
42. 928 E. Leuda St.; Lot 8, Block 7, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 63, Page 45, Plat
Records, Tarrant County, Texas.
43. 936 E. Leuda St.; Lot 10, Block 7, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 63, Page 45, Plat
Records, Tarrant County, Texas.
44. 1224 E. Leuda St.; Lot 7, Block 28, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 63, Page 45, Plat
Records, Tarrant County, Texas.
45. 355 Illinois; A portion of Lot 1, Block 21, Union Depot Addition, to the City of Fort
Worth, Tarrant County, Texas, according to the plat recorded in Volume 63, Page 45,
Plat Records, Tarrant County, Texas.
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46. 1204 E. Humbolt St.; Lot 50, Block 4, McConnell's Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 106, Page 72, Plat
Records, Tarrant County, Texas,
47. 929 E. Humbolt St.; Lot 23, Block 29 McAnulty &Nesbitt Subdivision %J Lot 2, Evans
Addition, to the City of Fort Worth, Tarrant County, Texas, according to the plat
recorded in Volume 63, Page 7, Plat Records, Tarrant County, Texas,
48. 1532 E. Hattie St.; Lot 9, Block 9, Glenwood Addition, to the City of Fort Worth, Tarrant
County, Texas, according to the plat recorded in Volume 63, Page 76, Plat Records,
Tarrant County, Texas.
49. 1612 E. Hattie St.; Lot 4, Block 10, Glenwood Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 63, Page 76, Plat
Records, Tarrant County, Texas.
50. 905 E. Hattie St.; Lot 21, Block 4, Union Depot Addition, to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 63, Page 45, Plat
Records, Tarrant County, Texas.