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HomeMy WebLinkAboutContract 54068ABATEMENT A f r�r�c 1U�12' wo��K NT FOR PROPERTY LO( EMPOWERMENT ZONE 660796609 and 6611 E. Lancaster Avenue I1 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 CityManager, and Shaban Real Estate Holdings, LLC, ("Owner") of property located at 6607, 6609 and 6611 E. Lancaster- Avenue, Lots 6-9 and the El ' Lot 10. Block 1, Original Town of Handley according to the, an addition to the City of Fort Worth, Tarrant County, Texas according to the Plat recorded in Volume 40, Page 51, of the Deed Records, Tarrant County, Texas. The City Council of the City of Fort Worth ("City Council") hereby finds and dre 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 empowement zone 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 neighborhood empowerment zone may enter into agreements abating municipal property taxes on property in the zone. C. On July 31, 2001, the City Council adopted basic incentives for• property owners who own property located in a Neighborhood Empowerment Zone, 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 "Neighborhood Empowerment Zone "NEZ Basic Incentives" ("NEZ Incentives"), these were readopted on May 6, 2017 (Resolution No. 4782). D. The NEZ Incentives contains appropriate guidelines and criteria governing tax abatement agreements to be entered into by the City as contemplated by Chapter 3l2 of the Texas Tax Code, as amended (the "Code"). E. On December 7, 2010, the Fort Worth City Council adopted Ordinance No. 19461 (the "Ordinance") establishing "Neighborhood Empowerment Reinveshnent Zone No.9R" City of Fort Worth, Texas (the "Zone") which was readopted on January 26, 2016, Ordinance No. 18650, and adopted Resolution No. 3945 establishing "Designation of the Historic Handley Area as a Neighborhood Empowerment Zone" (the "NEZ"). Page 1 of 13 NEZ Tax Abatement with Shaban Real Estate Holdings, LLC 66075 6609 and 6611 E. Lancaster Avenue Approved by M&C C-28808, August 21, 2018 GIIFFIGBAL REGOR® CITY SECRETARY T. WORTMl, TX FE Owner owns certain real property located entirely within the Zone and that is more particularly described in Exhibit "1", attached Hereto and hereby made a part of this Agreement for all purposes (the "Premises") G. Owner or its assigns plan to renovate and expand an existing commercial building for use as office, restaurant and retail space, more particularly described in Section 1.1 of this Agreement, on the Premises (the "Project"). IEI. On April 13, 2018, 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. I. 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 Ordinance and other applicable laws, ordinances, rules and regulations. J. 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 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. l�iCiW, `I' l ® ,the City and Owner, for and in consideration of the terms and conditions set forth herein, do hereby contract, covenant and agree as follows. 1.1. Real Property Improvements. Owner shall construct, or cause to be constructed, on and within the Premises certain improvements consisting of an interior and exterior remodel of an existing commercial building of approximately 7,830 total square feet for use as office, restaurant and retail space and having Construction Costs, excluding land, upon completion of $100,000.00 including site development costs (collectively, the "Required Improvements") but such Construction Costs shall be reduced by any construction cost savings. The type, number and details of the Required improvements are described in Exhibit "3". After construction of the Required Improvements is complete Owner shall provide a copy of the final construction invoices to City. The invoices shalt then be attached and made a part oftlus Agreement and shall be labeled Exhibit "4". 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 Exhibit " Y 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 "3". Page 2 of 13 NEZ Tax Abatement with Shahan Real Estate Holdings, LLC 6607, 6609 and 6611 E. Lancaster Avenue Approved by M&C C-28808, August 21, 2018 1.2. Construction Costs. "Construction Costs" shall mean site development costs (including demolition and environmental abatement), hard construction costs contractor fees; the costs of supplies and materials; engineering fees; architectural fees; and other professional fees (including legal and the costs associated with the financing of the Required Improvements, but not including loan interest or legal fees associated with negotiation of this agreement); and development fee and peimitting fees expended directly in connection with the Required Improvements. The City recognizes that Owner will request bids and proposals from various contractors in order to obtain the lowest reasonable price for the cost of the Required Improvements. In the event that bids and proposals for the Required Improvements are below $100,000.00 in Construction Costs for work substantially the same as that provided in Exhibit " Y and otherwise described in this Agreement, the City will meet with Owner to negotiate in good faith an amendment to this Agreement so that Owner is not in default for its failure to expend at least $100,000.00 in Construction Costs, with the understanding that the City's staff will recommend, but cannot guarantee, approval of such amendment by the City Council. The final site plan shall be in substantially the same form as the site plan submitted and attached as Exhibit "3". Minor variations, and more substantial variations if approved in writing by both 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"3". i..Bi. ��...oiiit?r�ic ion �?ite of iiefi'li➢red Im�,rlii'eYnent9. Owner covenants to complete construction of all of the Required Improvements by August 21, 2020, (the "Completion Deadline"). The abatement will automatically terminate two years after Council approval if the Required Improvements are not complete. The Required Improvements shall be deemed complete upon the issuance of a final certificate of occupancy for the Required Improvements by the Planning and Development Department. If the Owner fails to expend at least One Hundred Thousand Dollars ($100,000.00) in Construction Costs for the Required Improvements by the Completion Deadline as provided in Section 1.1 of this agreement; the City shall have the right to terminate this Agreement byproviding written notice to the Owner without further obligation to the Owner hereafter. 1.4. Use of Premises. Owner covenants that the Required Improvements shall be redeveloped and the Premises shall be continuously used as office, restaurant and retail space in accordance with the description of the Project set forth in Exhibit " 3". In addition, Owner, covenants that throughout the Term, the Required Improvements shall be operated and ma)ntained 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. Page 3 of 13 NEZ Tax Abatement with Shaban Real Estate Holdings, LLC 66073 6609 and 6611 E. Lancaster Avenue Approved by M&C C-28808, August 21, 2018 Sub3ect to and in accordance with this Agreement, the City hereby grants to Owner 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- iraposed 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 Required Improvements over their values as determined by TAD in May 2018, and this amount is $242,755.00 the year in which this Agreement was entered into: One Hundred percent (100%) of the increase in value from the construction of the Required Improvements. mprovements are less than as provided in Section 1.1 of this Agreement, except that such [11111nium construction costs shall be reduced by construction cost savings, Owner shall ' ' • eligible ,,• to receive •• Abatement ',• • under Agreement. 2.2. Increase in Value. The abatement shall apply only to taxes on the increase in value of the Premises due to construction of the Required Improvements and shall not apply to taxes on the land, nor shall the abatement apply to mineral interests. 2.3. Abatement Limitation. Notwithstanding anything that may be interpreted to the contrary in this Agreement, Owner's Abatement in any given year shalt be based on the increase in value of the Required Improvements over its value in May 2018, up to a maximum of $A 50,000.00. In other words, by way of example only, if the increase in value of the Required Improvements over its value in May 2018, in a given year is $395,000.00, 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 $150,000.00. 1 EEO Owner shaft have the right to protest and contest any or all appraisals or assessments of the Premises and/or improvements thereon. 2.5. Term. The term of the Abatement (the "Term")shall begin on 3anuary 1 of the year following the calendar year in which a final certificate of occupancy is issued for the Required Page 4 of 13 NEZ Tax Abatement with Shaban Real Estate Holdings, LLC 6607, 6609 and 6611 E. Lancaster Avenue Approved by M&C C-28808, August 21, 2018 Improvements including tenant finish outs ( 'Beginning Date") and, unless sooner terminated as herein provided, shall end on December- 31 immediately preceding the fifth (5`") anniversary of the Beginning Date, 2.6. Abatement application Fee. The City acknowledges receipt fiom Owner of the required Abatement application fee of one half of one percent (.5%) of Project's estimated cost, not to exceed $2,000. The application fee shall not be credited or refunded to any party for any reason. 3.1. Inspection of Premises. Between the execution date of this Agreement and the last day of the Term and for• five (5) years after termination ("Compliance Auditing Term"), at any time during normal office hours throughout the Term and the year following the Tenn 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. audits. The City shall have the right to audit at the City's expense the fnancial and business records of Owner that relate to the Project and Abatement terns and conditions (collectively, the "Records") at any time during the Compliance Auditing Tenn in order to determine compliance with this Agreement and to calculate the correct percentage of Abatement available to Owner. 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 die terms and conditions of this Agreement for that calendar year. This information shall include, but not be limited to, the number and dollar amounts of all construction contracts and subcontracts awarded on the Project. Failure to provide all irtfarmatiorr rvitlziu the control of Owner required by tJiis Section 3.3 shall constitute asz Eveirt ofDefault, as defined iu Section 4.1. 3.4. Determination of Compliance. On or before August 1 of each year dining the Compliance Auditing Term, the City shall make a decision and rule on the actual annual percentage of Abatement available to Page 5 of 13 NEZ Tax Abatement with Shahan Real Estate Holdings, LLC 6607, 6609 and 6611 E. Lancaster Avenue Approved by M&C C-28808, August 21, 2018 Owner for the following year of the Tenn 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 l .l ., (ii) ad valorem real property taxes with respect to the Premises or the Project, or its ad valorem taxes with respect to the tangible personal property located on the Premises, become delinquent and Owner does not timely and properly follow the legal procedures for protest and/or contest of any such ad valorem real property or tangible personal property taxes or (iii) OWNER DOES NOT COMTLY WITH CIIAPTER 7 AND APPENDIX D OF THE CODE OF ORDINANCE OF THE. CITY OF FORT WORTH (collectively, each an "Event of Default"). 4.2. Notice to Cure. Subject to Section 5, if the City determines that an Event of Default has occurred, the City shall provide a written notice to Owner that describes the nature of the Event of Default. Owner shall have sixty (60) calendar days from the date of receipt of this written notice to Rally 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 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. If an Event of Default, which is defined in Section 4.1, has not been cured within the time frame speccally 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 irmpossible 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 Page 6 of 13 NEZ Tax Abatement with Shahan Real Estate Holdings, LLC 6607, 6609 and 6611 E. Lancaster Avenue Approved by M&C C-28808, August 21, 2018 City through adjustments made to Owner's ad valorem property tax appraisal by the appraisal district that has jurisdiction over the Premises. Otherwise, this arnount 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. Notwithstanding anything herein to the contrary, damages due under this paragraph shall be the sole responsibility of Shaban Real Estate Holdings, LLC If the City and Owner mutually determine t13at 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. a. Owner understands and agrees the City has the right to terminate this agreement if the Project contains or will contain asexually oriented business. b. Owner understands and as •ees 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. Owner may assign this Agreement and all or any portion of the benefits provided hereunder to Shaban Real Estate Holdings, LLC, or an Affiliate without the consent of the City, provided that (i) prior to or contemporaneously with the effectiveness of such assignment, Owner provides the City with written notice of such assignment, which notice s}rall include the name of the Affiliate and a contact name, address and telephone number, and (ii) the Affiliate agrees in writing to assume all terms and conditions of Owner under this Agreement. For purposes of this Agreement, an "Affiliate" means all entities, incorporated or otherwise, under common control with Owner, controlled by Owner or controlling Owner. For purposes of this definition, "control" means fifty percent (50%) or more of the ownership determined by either value or vote. Owner may not otherwise assign this Agreement or any of the benefits provided hereunder to another party without the consent of the City Council, which consent shall not unreasonably be withheld or delayed, 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 assignee agrees in writing to assume all terms and conditions of Owner under this Agreement. Any attempted assignment without the City Council's prior written 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. Page 7 of 13 NEZ Tax Abatement with Shaban Real Estate Holdings, LLC 6607, 6609 and 661 l E. Lancaster Avenue Approved by M&C C-28808, August 21, 2018 6. NOTICES. All written notices called far 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 200 Texas Street Fort Worth, TX 76102 and Neighborhood Services Department Attn: Director 200 Texas Street Fort Worth, TX 76102 7.1. Bonds. Owner: Shaban Real Estate Holdings, LLC 401 N. Beach St. Ft. Worth, TX 76111 The Required Improvements will not be financed by tax increment bonds. 3'his Agreement is subject to rights of holders of outstanding bonds of the City. 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 reguulations shall control. In the event of any conflict between the body of this Agreement and Exhibit "311, the body of this Agreement shall control. As of August 21, 2018, the City is unaware of any conflicts between this Agreement and the City's zoning ordinance or other ordinances or regulations. 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. Page 8 of 13 NEZ Tax Abatement with Shaban Real Estate Holdings, LLC 6607, 6609 and 6611 E. Lancaster Avenue Approved by M&C C-28808, August 21, 2018 7.5. City Council Authorization, This Agreement was authorized by the City Council through approval Mayor and Council Communication No. C-28808 on August 21, 2018, which, among other things, authorized the City Manager to execute this Agreement on behalf of the City. 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 ifrequested 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 andlor necessary to effect a cure), the remaining term of this Agreement, the levels and remaining tern 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 shaft 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, Pules, regulations, or policies of dae 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. 5e17erabilit17. 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 pwposes only and shall not be deemed a part of this Agreement. Page 9 of 13 NEZ Tax Abatement with Shaban Real Estate Holdings, LLC 66075 6609 and 6611 E. Lancaster Avenue Approved by M&C C-28808, August 21, 2018 7.i1. 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. (REMAINDER OF PAGE INTENTIONALLY BLANK) Page l0 of 13 NEZ Tax Abatement with Shaban Real Estate Holdings, LLC 66079 6609 and 6611 E. Lancaster Avenue Approved by M&C &28808, August 21, 2018 City of Fort Worth: By: Fernando Costa Assistant City Manager ATTE By: Secretary APPROVED AS TO FORM AND LEGALITY: By: Melinda Ramos Sr. Assistant City Attorney M & C: C-28808 By: Zl/ KLA. Shaban, Manager Shaban Real Estate Holdings, LLC ®�FIt1A1 REC®R® CITI( SECRETARY FT. WORTH, 7'X Page l l of 13 NEZ Tax Abatement with Shaban Real Estate Holdings, LLC 6607, 6609 and 6611 E. Lancaster Avenue Approved by M&C C-28808, August 21, 2018 STATE OF TEXAS § COUNTY OF TARRANT § 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 duty 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 I'do�ary Public in and for the State of Texas STATE OF TEXAS § COUNTY OF I § AND SEAL OF OFFICE this day of BEFORE ME, the undersigned authority, on this day personally appeared H.A. Shaban, Manager of Shaban Real Estate Holdings, LLC, 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 for Shaban Real Estate Holdings, LLC. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of 2018. Notary Pubr in and for The State of Texas ;�;;�i�;��CHARLES BURGESS JR =.,rc �' Notary Public . _o STATE OF TEXAS p4 ```" My Comm. Exo, March 23, 2019 Page 12 of 13 NEZ Tax Abatement with Shaban Real Estate Holdings, LLC 6607, 6609 and 6611 E. Lancaster Avenue Approved by M&C C-28808, August 21, 2018 Exhibit 1: Property Description Exhibit 2: Application: (NEZ) Incentives and Tax Abatement Exhibit 3: Project description Exhibit 4: Final Construction Invoices (to be attached after construction) Page l3 of 13 �IEZ Tax Abatement with Shaban Real Estate Holdings, LLC 6607, 6609 and 66l l E. Lancaster Avenue Approved by M&C G28808, August 21, 2018 Exhibit 1 Property C;g_al DeSCrl1z 011 6ou 1 6609 and 6611 E. Lancaster Avenue, Lots 6-9 and the El' Lot 10, Block 1, Original Town of Handley according to the , an addition to the City of Fort Worth, Tarrant County, Texas according to the Plat recorded in Volume 40, Page 51, of the Deed Records, Tarrant County, Texas. Exhibit 2 FORT WORTH City of Fort Worth Application No, Neighborhood Empowerment one (NEZ) Application for Basic Incentives Property Owner: Shaban Real Estate Holding, LLC Last First Address: 401 N. Beach St. Fort Worth Texas 76111 Street Address City State Zip Phone: 817-831-2668 Email: NCooper@ecaravan.net Contact: Scarth Danny I. (If different) Last First ML Phone: 817-902-1759 Email: Danny@Rivelwoodmanagement.com Project Information NEZ certifications are project specific. Please describe your project: Rehab of existing commercial buading ❑ ❑ ❑ ❑ ❑ Single Family Multi- Family Commercial Industrial Community Facilities Mixed -Use Project Address: 6607, 6609 and 6611 E. Lancaster Street Address Legal Description: HANDLEY, ORIGINAL TOWN BLOCK 1 LOT 8-9 E4'10 Lot Block Addition YES NO YES NO New Construction / Addition: ❑ Remodel / Rehab: ® ❑ Total New Sq. Ft. Total Development Cost: $100,000.00 YES NO Will the NEZ certified property be occupied by the property owner? ❑ 1Z If your project is a Mixed Use project, please list all specific uses that are being proposed: YES NO Do you wish to apply for a NYunicipal Property Tax abateluent for this project? � ❑ 1f the above answer is yes, please contact the City of Fort Worth Neighborhood Services Departrnent at (817) 3924316 or visit litip://fortworthtexas aov/neiehborhoodsNEZ/ for additional information. YES NO Do you jvish to apply for a release of certain City liens? Weed, Paving, Demolition and Board Up /Open Structure liens may be released Will a Zoning Change appi Signature of Zoning Staft': Revised 0512016 JLE Application No. City of Fort Worth igLiborilood Empowerment Zone (NEZ} Application for Basic Incentives Acknowledgements 1 hereby certify that the information provided is true and accurate to the best of my knowledge. 1 hereby acknowledge that I have read the NI;Z 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. t understand that the approval of fee waivers and other incentives shalt not be deemed to be approval of any aspect of the project. I understand that I am responsible for obtaining requu•ed permits and inspections from the City and in ensuring the project is located in the correct zoning district. t 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 Tort Worth 1 may not be eligible for NEZ basic incentives. 1 understand that I must pay all associated fees al the lime of project application and/or permit submittal if I wish to submit permits prior to determination of NEZ eligibility. I understand that some perrr►its may not be issued while NEZ eligibility is being Shahan Rea! Esiate Holding, LLC, Sam Shahan Printed I�Iame of Property Owner of Property Owner Please mail, a -Mail or bring your completed applicatian to: City of Fort Worth Planning. and Development Department 1000 Throclunorton Street, Fort Worth, Texas 76102 E-Mail: DevNezProgram@forhvorthtexas.gov 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 httpa/fortworthtexas.aov/neiahborhoods/NEZ/ or contact our office at (817) 392-2222 or DevNezProgram@fortworthtexas.gov. For more information on Tax Abatements, see the above website or contact Neighborhood Services at (817) 392-7316. ent Office Use Only YES Mn Project certified for NEZ Basic incentives: ❑ ❑ If yes, Certified By: If not certified, reason for denials Revised 05/2016 JLE Exhibit 3 Project Description interior and exferior remodel of an existing 7,830 square foot commercial building.. * Upon completion the building will Douse multiple tenants for retail, restaurant and office use. TENANT FINISH -OUT PLAN SPECIFIC NOTES: s. ASrFNaTL� TENANT FINISH 1. ALL STRUCTURAL WALLS A. DEMOLITION AS ARE EXISTING. NOTED ON PLAN 2. ELECTRICAL & HVAC UPGRADE B. INSTALL DROPPED 3. DROPPED CEILING TO BE C. ADD ROOMS AS NOTED INSTALLED IN EACH ROOM. D. ADD/REPAIR ELECTRIC PANELS TO BE 2'x4' U.O.N. AS SPECIFIED. EXCEPT WHERE NOTED E. ALL COSMETIC ITEMS AS 4. NEW BATHROOMS MUST CONTRACTED BETWEEN MEET ALL A.D.A. REGUATIONS OWNER AND CONTRACTOR. 5. EACH UNIT WILL MEET AA.A F. INSTALL HOT WATER HEATERS COMPLIANCE G. ADD DUCTS k REGISTERS FROM EXISTING PLENUM DROPS H. INSTALL GREASE TRAP EXISTING AND CONTRACTOR MUST FIELD VERIfY MEASUREMENTS ON PLANS VERSUS EXISTING OWNER LEGAL syam Rc Estate B]1a9 a Aerflea 9/ Let H, wl of {01 Hert6 etctl Slrcet Lets T, H Q O Bt % Fort WaUj Tx 76111 1, O=4W MM OF H DL6'T, 017.831.2668 city ofe OWNER SIGNATURE I \LARCH AIv Sin Whrn Fir 1\.N 1, Tv�]rrt] � (unl ¢rv�raf N�F3 fD fVN f(f.Y{ COMBINED PLAN KwE ions •_ _ �_ AREAS 1RUX3L L:: i'�fTW >c>xY>imia (4M1_ifTa_S+i.fSL tn)f F. fvraa�- Exhibit 4 Final Construction Invoices VhiLl be provided to City after consfn.fction is complete and final Certificate of Occupancy is issued. Iv��cl Review • ii—�" � f� �� � r-'i 1 , r�� � �_��-, FORi'�'�'ORTH COUNCIL ACTION: Approved on 8/21/2018 DATE: 8/21/2018 REFERENCE C-28808 LOG NAfVIE: 196607ELANCASTER NO.. CODE: C TYPE: CONSENT HEARING: NO SUBJECT: Authorize Execution of a Five -Year Tax Abatement Agreement with Shaban Real Estate Holdings, LLC for the Rehabilitation and Expansion of a Commercial Shopping Center Located at 6607, 6609 and 6611 E. Lancaster in the Historic Handley_ Neighborhood Empowerment Zone (COUNCIL DISTRICT 5) RECOMiViENDATION: It is recommended that the City Council authorize the execution of a Five -Year Tax Abatement Agreement with Shaban Real Estate Holdings, LLC for the rehabilitation and expansion of a commercial shopping center located at 6607, 6609 and 6611 E. Lancaster Avenue in the Historic Handley Neighborhood Empowerment Zone, in accordance with the Neighborhood Empowerment Zone Tax Abatement Policy and Basic Incentives. DISCUSSION: Shaban Real Estate Holdings, LLC, (Property Owner) is the owner of the property described as Block 1, Lots 6-9 and the E1' Lot 10 Original Town of Handley according to the plat recorded in Volume 40, Page 51, Deed Records, Tarrant County, Texas at 6607, 6609 and 6611 E. Lancaster Avenue, Fort Worth, Texas. The property is located within the Historic Handley Neighborhood Empowerment Zone (NEZ). The Property Owner plans to invest an estimated amount of $100,000.00 for the rehabilitation and expansion of a commercial shopping center of approximately 7,830 square feet, (Project). The Neighborhood Services Department reviewed the applicaticn 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 2019 at the estimated pre -improvement value, as defined by the Tarrant Appraisal District (TAD) in 2018, as follows: Pre -Improvement TAD Value of Improvements ��$242,755.00 IPre-Improvement Estimated Value of Land ��$ 21,992.00 Total Pre -Improvement Estimated Value ��$264,747.00 The municipal property tax on the improved value of Project after completion is estimated in the http://apps.cfwnet.org/council_packet/mc review.asp?ID=26159&councildate=8/21/2018[8/27/2018 2:41:33 PM] IvI&c; Review amount of $805.00 per year for a total amount of $4,025.00 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. The Tax Abatement Agreement may be assigned to an affiliate of the property owner without the consent of the City Council. If the property is sold to a new owner, other than an affiliate, the Agreement may be assigned only with City Council approval and provided that the new owner meets all of the eligibility criteria as stated in the NEZ Tax Abatement Policy and Basic Incentives. This property is located in COUNCIL DISTRICT 5. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendations approximately $4,025.00 in property taxes will be abated over the five-year period from 2019-2023. This revenue loss will be incorporated into the City's five-year financial forecast. TO Fund Department Account Project Program Activity Budget Reference # Amount ID ID Year (Chartfield 2) FROM Fund Department Account Project Program Activity Budget Reference # Amount ID ID Year (Chartfield 2) Submitted for City Manager's Office bk. Originating Department Head: Additional Information Contact: ATTACHMENTS 6607-6609-66� � E Lancaster Map for Council.odf 6607-6611 E. Lancaster Current Condition.pdf 6607-6611 E. Lancaster_Proposed Redevelooment.pdf Form 1295 SREH.pd Fernando Costa (6122) Aubrey Thagard (8187) Sarah Odle (7316) http://apps.cfwnet.org/council_ packet/mc review.asp?ID=26159&councildate=8/21/2018[8/27/2018 2:41:33 PM]