HomeMy WebLinkAboutContract 54067FORT WORTH,
CITY SECRETARY
COrJTRACTNO.
NEIGHBORHOOD EMPOWERMENT ZONE
TAX ABATEMENT AGREEMENT
New construction single family -owner
5524 Houghton Avenue
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 David Cooke, its duly authorized City Manager, in accordance
with the authority granted under Chapter 378 of the Texas Local Government Code, and Reuben Lamont
Brown, owner of property located 5524 Houghton Avenue, Lot 28, Block 41, Chamberlin Arlington
Heights 2"d Addition, situated in the City of Fort Worth, Tarrant County, Texas and located within the Fort
Worth Independent School District, as shown by a Deed of Record in Document #D216227441 of the Deed
Records, Tarrant County, Texas,
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. On January 29, 2019 the Fort Worth City Council adopted Ordinance No. 23552 (the
"Ordinance") establishing "Neighborhood Empowerment Reinvestment Zones No.1R through 6R" City
of Fort Worth, Texas (the "Zones") and adopted Resolution No. 5042 establishing "Designation of the
Neighborhood Empowerment Zone Areas One through Six" (the "NEZ" ).
B. Owner owns certain real property located entirely within Zone 3R and that is more particularly
described in Exhibit "1", attached hereto and hereby made a part of this Agreement for all purposes (the
"Premises").
C. Owner or its assigns plan to construct the Required Improvements, as defined in Section 1.1 of
this Agreement, on the Premises (the "Project").
D. On December 3, 2019, Owner submitted an application for tax abatement to the City
concerning the Premises (the "Application"), attached hereto as Exhibit "2" and hereby made a part of this
Agreement for all purposes.
E. The contemplated use of the Premises, the Required Improvements 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 Ordinance and other applicable laws, ordinances,
rules and regulations.
F. 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__ overning
bodies of each of the taxing units in which the Premises is located.
OFFICIAL RECORD
Page 1
NEZ Tax Abatement Agreement —Reuben Lamont Brown
5524 Houghton A
ve
M&C 2M085 Approved: Apri17. 2020
CITY SECRETARY
FTWORTHTX
. ,
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 ProUert w Improvements.
Owner shall construct, or cause to be constructed, on and within the Premises certain
improvements consisting of a single-family residence, of approximately 1,634 square feet in size and
built to the specifications listed in Exhibit "3 ", (collectively the "Required Improvements"). Minor
variations and more substantial variations if approved in writing by both parties to this Agreement
before construction is undertaken 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 Section 1.3.
1.2. Completion Date of Required Improvements.
Owner certifies that the Required Improvements will be completed within two years from the
date of Council approval. The abatement will automatically terminate two years after Council approval
if a building permit has not been pulled and a foundation has not been poured, 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 as determined by the City of Fort Worth in its sole discretion, which shall
not be unreasonably withheld, including, without limitation, delays caused by adverse weather, delays
in receipt of any required permits or approvals from any governmental authority, acts of God, or fires.
Force majeure 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 sold to a Home
Owner to continuously be used as the primary residence of the Home Owner in accordance with
the NEZ Incentives. In addition, Owner covenants that throughout the Term, the Required
Improvements shall be maintained for the purposes set forth in this Agreement.
2. ABATEMENT AMOUNTS. TERMS AND CONDITIONS.
Subject to and in accordance with this Agreement, the City hereby grants to Owner a real property
tax abatement of City of Fort Worth -imposed taxes on the Premises for the Required Improvements, as
specifically provided in this Section 2 ("Abatement"). Abatement does not include taxes fiom 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 due to the Required Improvements, over its value as determined
by Tarrant Appraisal District in February 2020, and this amount is $0.00.
Page 2
NEZ Tax Abatement Agreement —Reuben Lamont Brown
5524 Houghton Ave
M&C 2M085 Approved: ADri17. 2020
If the square footage requirement of the Required Improvements are less than as provided in
Section 1.1 of this Agreement, Owner shall not be eligible to receive any Abatement under this
Agreement.
2.2 Increase in Value.
The Abatement shall be 100% of the increase in value from the construction of the Required
Improvements up to a maximum of $218,583.00 and shall apply only to taxes on the increase in
value of the Premises due to construction of the Required Improvements. In other words, by way of
example only, if the increase in value of the Required Improvements over its value in February 2019,
in a given year is $220,000.00, Owner's Abatement for that tax year shall be capped and calculated
as if the appraised value of the Required Improvements for that year had only been $218,583.00.
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 of the year following the
calendar year in which the Required Improvement is completed and sold to a Home Owner
("Beginning Date") and, unless sooner terminated as herein provided, shall end on December 31
immediately preceding the fifth (51h) anniversary of the Beginning Date.
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.
2.5. Abatement Application Fee.
The City acknowledges receipt from Owner of the required Application fee of $100.00. The
application fee shall not be credited or refunded to Owner or its assigns for any reason.
3. RECORDS. AUDITS AND EVALUATION OF REQUIRED IMPROVEMENTS.
3.1. Inspection of Premises.
Between the execution date of this Agreement and the last day of the Term, at any time during
normal office hours throughout the Term and the year following the Term 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 "3 ". 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
Page 3
NEZ Tax Abatement Agreement —Reuben Lamont Brown
5524 Houghton Ave
M&C 2M085 Approved: ADHI 7.2020
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 I following the end of every year during the Compliance Auditing Teirn
and at any other time 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.
Owner must also provide documentation of compliance to Tarrant Appraisal District (TAD)
each year of the abatement by filling out and returning Tax Abatement Form 50-116 from the TAD
website no later than April 30th for each year Owner is requesting tax abatement.
Failure to provide all information within the control of Owner required by this Section
3.3 shall constitute an Event of Default, as defined in Section 4.1
3.4 Determination of Compliance.
On or before August 1 of each year during the Compliance Auditing Term, the City shall make
a decision and rule on the actual annual percentage of Abatement available to Owner for the following
year of the Term and shall notify Owner of such decision and ruling. The actual percentage of the
Abatement granted for a given year of the Term is therefore based upon Owner's compliance with the
terns 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.; (ii) ad valorem real property
taxes with respect to the Premises or the Required Improvements, 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; (iii) OWNER DOES NOT USE THE PREMISES AS
PRIMARY RESIDENCE ONCE THE ABATEMENT BEGINS; or (iv) OWNER DOES NOT
COMPLY WITH CHAPTER 7 AND APPENDIX B OF THE CODE OF ORDINANCES OF
THE CITY OF FORT WORTH (collectively, each an "Event of Default").
4.2. Notice to Cure.
Subject to Section 5, if the City determines that an Event of Default has occurred, the City
shall provide a written notice to Owner that describes the nature of the Event of Default. Owner shall
have 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 of Default, after advising
Page 4
NEZ Tax Abatement Agreement —Reuben Lamont Brown
5524 Houghton Ave
M&C 20-0085 A-wroved: Mri17. 2020
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 Event of Default and Payment of Liquidated Damages.
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
therefrom 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 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 Sexuallyoriented business & Liq,nor Stores or Package Stores.
a. Owner understands and agrees that the City has the right to terminate this agreement if
the Required Improvements 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 Required Improvements contains or will contain a
liquor store or package store.
5. EFFECT OF SALE OF PREMISES.
Except for an 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 which City Council hereby agrees to,
the Abatement granted hereunder shall vest only in Owner; however if Owner sells the Premises and Required
Page 5
NEZ Tax Abatement Agreement —Reuben Lamont Brown
5524 Houghton Ave
M&C 20-0085 Approved: April 7.2020
Improvements, this Abatement cannot be assigned to a new owner of all or any portion of the Premises and/or
Required Improvements 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.
IN NO EVENT SHALL THE TERM OF THIS AGREEMENT BE EXTENDED IN THE EVENT OF
A SALE OR ASSIGNMENT.
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 60 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.
6. 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 %J Fort Worth
Attn: City Manager
200 Texas Street
Fort Worth, Texas 76102
and
Neighborhood Services Department
Attn: Director
200 Texas Street
Fort Worth, Texas 76102
Owner:
Reuben Lamont Brown
4110 Fairmount St. Apt. 3126
Dallas, Texas 75219
Page 6
NEZ Tax Abatement Agreement —Reuben Lamont Brown
5524 Houghton Ave
M&C 2M085 Approved: ADHI 7.2020
7. MISCELLANEOUS.
7.1. Bonds
The Required Improvements will not be financed by tax increment bonds. This Agreement is
subject to the 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 "3 ", the body of this Agreement shall control.
7.4. Future Application.
A portion or all of the Premises and/or Required Improvements maybe 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 authar-ized by the City Council through approval of Mayor and Council
Communication No. 20-0085 on April 7, 2020, which, among other things, authorized the City
Manager to execute this Agreement on behalf of the City.
7.6. Esto nel 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, if requested,
will be addressed to the Owner, and 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.
Page 7
NEZ Tax Abatement Agreement —Reuben Lamont Brown
5524 Houghton Ave
M&C 2M085 Approved: April 7.2020
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. Severabilitv0
If any provision of this Agreement is held to be invalid, illegal or unenforceable, the vaty,
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. Entire 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.
Page 8
NEZ Tax Abatement Agreement —Reuben Lamont Brown
5524 Houghton Ave
M&C 20-0085 Approved: ADHI 7. 2020
CITY OF FORT WORTH:
By:
Fernando Costa
Assistant City Manager
ATTEST:
By:
ary Kayser
ty Secretary
APPROVED AS TO FORM AND LEG.
By:
Melinda Ramos
Sr. Assistant City Attorney
M & C: 20-0085
Date Approved: April 7, 2020
OWNER:
By:
Reuben Lamont Brown
FOR
Page 9
NEZ Tax Abatement Agreement —Reuben Lamont Brown
5524 Houghton Ave
M&C 2M085 Approved: Apri17. 2020
STATE OF TEXAS §
COUNTY OFARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Fernando Costa,
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 resolution 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.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this 2 7 day of
2020.
Notary Public in and for
the State of Texas
STATE OF TEXAS §
COUNTY OFARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Reuben Lamont
Brown, known to me to be the person whose name is subscribed to the foregoing instrument, and
acknowledged to me that she executed the same for the purposes and consideration therein
expressed, in the capacity therein stated.
GIVE ER MY HAND AND SEAL OF OFFICE this _1�aay of
UIZ Lr2 � , 2020.
Notary Public in and for
the State of Texas
,�P"���A� Y R JACKSON
i � Notary ID N126165166
r My Commission Expires
March22, 2023
Page 10
NEZ Tax Abatement Agreement —Reuben Lamont Brown
5524 Houghton Ave
M&C 20-0085 Approved: AmH 7. 2020
Exhibit 1: Property Description
Exhibit 2: Application: (NEZ) Incentives and Tax Abatement
Exhibit 3: Required Improvements description
Page 11
NEZ Tax Abatement Agreement —Reuben Lamont Brown
5524 Houghton Ave
M&C 20-0085 Annroved: Anri17. 2020
Exhibit 1
Property Description
5524 Houghton Avenue, Lot 28, Block 41, Chamberlin Arlington Heights 2°d Addition, situated
in the City of Fort Worth, Tarrant County, Texas and located within the Fort Worth Independent
School District, as shown by a Deed of Record in Document #D216227441 of the Deed Records,
Tarrant County, Texas.
Exhibit 2
FORT WORTN,.
Application No. /� L
17
City of Fort Worth
Neighborhood Empowerment Zone (NEZ) Application for Basic Incentives
Property Owner:
Phone:
Contact:
(If different)
Phone:
StreetAddress City
/✓'(o— l �f �� —5!: x Email:
State Zip
2zY u,%
Last First
Email• �✓/�
NEZ certifications are project specific. Please describe your project:
Single Family Multi- Family Commercial Industrial Community Facilities Mixed -Use
Project Address: _55 ZL�j'���'/�ye-�''�,
Street Address
Legal Description: / 7G3f Ley �/ Cr j�y�i��
Lot Block Addition
YE NO YES NO
New Construction /Addition:/ �9 El Remodel / Rehab: ElI�
Total New Sq. Ft. �F.3T Total Development Cost.
YES N.,_O,/
Will the NEZ certified property be occupied by the property owner? ElL�
i
If your project is a Mixed Use project, please list all specific uses that are being proposed: /
Do you wish to apply for• a Municipal Property Tax abatement for• this p►•oject? � "��
If the above answer is yes, please contact the City of Fort Worth Neighborhood Services Department atVPQ
(817) 392-7316 or visit http_//fortworthtexas.cov/neiahborhoodsMEZ/ for additional information�.
N,/
Do you wish to apply for a release of certain City liens?
❑ L�
Weed, Paving, Demolition and Board Up /Open Structure liens may be released
YES NO
Will a Zoning Change ap
Signature of Zoning Stafi
Revised 06@016 JLE
Application No
City of Fart VVo1 th
2 :) �Je�J 3
Neighborhood Empowerment Zone (NEZ) Application for Basic Incentives
I hereby certify that the information provided is true and accurate to the best of my knowledge.
I hereby acknowledge that I have read the NEZ Basic Incentives, which governs the granting of tax abatements, fee
ai wvers 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 steal] not be deemed to be approval of any aspect
of the project. I understand that I am responsible for 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, if the application is not complete within
30 days, it will be withdrawn and application fees paid will not be reimbursed. I agree to provide any additional
information for determining eligibility as requested by the City.
I understand that if there are taxes due or liens against any property owned in the City of Fort Worth I may not be
eligible for NEZ basic incentives.
I understand that I must pay all associated fees at the time of project application andlor• permit submittal if I wish
to submit permits prior to determination of NEZ eligibility.
I understand that some permits may not be issued while NEZ eligibility is being established.
Printed Name of Property Owner
Signature of Property Owner
Date
An electronic version of this form is available on our website. For more information on the NEZ Program for
Basic Incentives, please visit our web site at http://fortworthtexas. og vineighborhoods/NEZI or contact our office
at (817) 392-2222 or DevNezPyograin@foitwotlbtexas.gov.
For more information on Tax Abatements, see the above website or contact Neighborhood Services at
(817) 392-7316.
C
If not certified, reason for denial:
Revised 05/2016 JLE
Exhibit 3
Project Description
New Construction of a single family residence
• 1,634 Total Square Feet Residence
• 3 Bedroom, 2 Bath
• Family Room
• Kitchen
• Optional Fireplace
• Utility Room
• 2 Car Attached Garage
• Brick Veneer/Hardy Board Exterior
City of Fort Worth -File #: M&C 2d-0085
7
Home Legislation
Details Reports
File #:
Type:
File created:
On agenda:
Title:
Attachments:
Calendar City Council
M&C 20-0085 Version: 1
Award of Contract Consent
2/13/2020
z/18/zozo
Departments
Sian In
i.�?. L®; Ifs ahare� ft9 RSA I.� Alerts -.I
Name;
Status:
In control:
Final action
Passed
CITY COUNCIL
4/7/2020
Authorize Execution of a Five -Year Tax Abatement Agreement with Reuben Lamont
Brown for the Construction of aSingle-Family Dwelling of Approximately 1,634 Totat
Square Feet and Having a Cost of at Least $135,000.00 on Property Located at 5524
Houghton Avenue, in the Como Neighborhood and Within Neighborhood
Empowerment Zone and Reinvestment Zone Area Three (COUNCIL DISTRICT 3)
(Continued from a Previous Week)
1. M&C 20-0085, 2. 5524 Houghton Map to Councif.pdf, 3. Elevations and Floor
Plan. pdf
History (2} Text
2 records Group Export
Date Ver. Action By Action Result 'Action Details Meeting Details Video
4/7/2020 1 CITY COUNCIL Approved Action details Meeting details ��� Video
2/18/2020 1 CITY COUNCIL Continued
Action details Meeting details Not available
https:/Ifortwo�-thgov.legistar.com/LegislationDetail.aspx?ID=43 32179&GUID=ECFC732'7... 6I12/2020
M&C F,;Pv�ew
CITY COUNCIL AGENDA FORT_��0�1
DATE: 2/18/2020 REFERENCE **M&C 20- LOG NAME: 19NEZ5524H000HTON
NO.: 0085
CODE: C TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT: Authorize Execution of a Five -Year Tax Abatement Agreement with Reuben Lamont
Brown for the Construction of aSingle-Family Dwelling of Approximately 1,634 Total
Square Feet and Having a Cost of at Least $135,000.00 on Property Located at 5524
Houghton Avenue, in the Como Neighborhood and Within Neighborhood
Empowerment Zone and Reinvestment Zone Area Three (COUNCIL DISTRICT 3)
(Continued from a Previous Week)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a Five -Year Tax Abatement
Agreement with Reuben Lamont Brown for the construction of asingle-family dwelling of
approximately 1,634 total square feet and having a cost of at least $135,000.00 on property located
at 5524 Houghton Avenue, in the Como Neighborhood and within Neighborhood Empowerment
Zone and Reinvestment Zone Area Three, in accordance with the Neighborhood Empowerment
Zone Program Basic Incentives and Tax Abatement Policy.
DISCUSSION:
Reuben Lamont Brown (Property Owner) is the owner of the property described as Lot 27 and 28,
Block 41, Chamberlain Arlington Heights 2nd Addition, situated in the City of Fort Worth, Tarrant
County, Texas and located within the Fort Worth Independent School District, as shown by a Deed
of Record in Document #D216227441 of the Deed Records, Tarrant County, Texas, at 5524
Houghton Avenue, Fort Worth, Texas. The property is located within Neighborhood Empowerment
Zone Area Three (NEZ).
The Property Owner plans to invest an estimated amount of $135,000.00 to construct asingle-
family residence of approximately 1,634 total square feet (Project). The Project will be sold to a
homeowner to be used as a primary residence.
The Neighborhood Services Department reviewed the application and certified that the Property
Owner and Project met the eligibility criteria to receive a NEZ Municipal Property Tax Abatement.
The NEZ Basic Incentives includes aFive-Year Municipal Property Tax Abatement on the
increased value of improvements to the qualified owner of any new construction or rehabilitation
within the NEZ.
Upon execution of the Agreement, the total assessed value of the improvements used for
calculating municipal property tax will be frozen for a period of five years starting January 2021 at
the estimated pre -improvement value as defined by the Tarrant Appraisal District (TAD)
in September 2019 for the property as follows:
Pre -Improvement TAD Value of Improvements $0.00
Pre -Improvement Estimated Value of Land $25,000.00
Total Pre -Improvement Estimated Value $25,000.00
http://apps.cfivnet.org/council�acket/mc_review.asp?ID=27654&councildate=2/18/2020[6/12/2020 3:40:46 PM]
M&C Review
The municipal property tax on the improved value of the Project after construction is estimated in
the amount of $1,009.13 per year for a total amount of $5,045.65 over the five-year period.
However, this estimate may differ from the actual tax abatement value, which will be calculated
based on the Tarrant Appraisal District appraised value of the property.
In the event of a sale of this property, the Tax Abatement Agreement may be assigned to a new
owner's first mortgage or a new owner as a primary residence. All other assignments must be
approved by the City Council.
This property is located in COUNCIL DISTRICT 3.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon final approval of the Tax Abatement Agreement, a loss
of an estimated $5,045.65 in property revenue may occur over the five year Tax Abatement
period. This reduction in revenue will be incorporated into the long term financial forecast upon the
Tax Abatement being officially granted.
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Submitted for City Manager's Office b�
Originating Department Head:
Additional Information Contact:
ATTACHMENTS
5524 Houghton Map to Council.pdf
Elevations and Floor Plan.pdf
Fernando Costa (6122)
Victor Turner (8187)
Sarah Odle (7316)
http://apps.cfivnet.org/council�acket/mc_review.asp?ID=27654&councildate=2/18/2020[6/12/2020 3:40:46 PM]