HomeMy WebLinkAboutContract 46933 (2)4\
f :CEAVED
TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD
L
EMPOWERMENT ZONE
."It H
CRY SE.CRE'TARY
CITY SECRETARY
CONTRACT N0. �� 9 33
6 9 I
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, and Joel Russell, ("Owner"), owner of property located at 2704 Virginia
Court, Block 1, Lot 8, Jarrell Oakhurst Addition, an addition to the City of Fort Worth, Tarrant
County, Texas, as shown by a Deed of Record recorded in Volume 7257, Page 1022, of the Deed
Records of Tarrant County Texas.
2704 Virginia Court
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;
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.
(3)
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 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 19,
2015 (Resolution No. 4455).
D. The NEZ Incentives contain 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 ("Code").
E. On April 5, 2011, the City Council adopted Ordinance No. 19641 ("Ordinance")
establishing "Neighborhood Empowerment Reinvestment Zone No. 38," City of Fort Worth, Texas
("Zone") and adopted Resolution No. 3 981 Establishing "Designation of Six Points Area as a
Neighborhood Empowerment Zone" ("NEZ"
SCANNED
I.
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
NEZ Tax Abatement with Joel Russell
Approved by M&C C-27407, August 4, 2015
Page 1 of 11
F. 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 rehabilitate the Required Improvements, as defined in
Section 1 1 of this Agreement, on the Premises to be used as a single-family residence that will be
used as rental property.
H. On June 22, 2015, Owner submitted a complete application for NEZ incentives and for
tax abatement to the City concerning the contemplated use of the Premises (the "Application"),
attached hereto as Exhibit "2" and hereby made a part of this Agreement for all purposes.
I. The City Council fmds 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 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, 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 foi 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 repair/remodel a Single -Family Dwelling, (collectively, the "Required
Improvements' ), the kind and type of remodel are more particularly described in hxhibit
"3". Minor variations in the Required Improvements from the description provided in the
Apphcation for Tax Abatement shall not constitute an Event of Default as defined in
Section 4.1, provided that the Required Improvements are in the manner described in
Exhibit "3' . TalTant Appraisal District must appraise the property (improvements and land)
within 10% of $50,400.00.
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 the project is not complete, 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,
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which shall not be unreasonably withheld, including, without limitation delays caused by
adverse weather, delays in receipt of any required peitnits 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 rehabilitated/remodeled
and the Premises shall be used as rental property in accordance with the description of the
Project set forth in the Exhibit "3" 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. 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 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 due to the Required Improvements, over its value
as determined by TAD on August 12, 2015, for the existing improvements and this amount
is $44,750.00.
If the appraised value of the Required Improvements are less than as provided in
Section 1.1 of this Agreement, Owner shall not be eligible to receive any Abatement under
this Agreement.
2.2 Increase in Value.
The Abatement shall 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 of the year following
the calendar year in which the Required Improvement is completed by final inspection
('Beginning Date") and, unless sooner terminated as herein provided, shall end on
December 31 immediately preceding the fifth (5th) anniversary of the Beginning Date.
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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/oi 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 REOUIRED IMPROVEMENTS.
3.1. Inspection of Premises.
Between the execution date of this Agreement and the last day of the Term, at any
time during noinral 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 teinrs 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
teem 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 their primary
residence (collectively, the "Records') at any time during the Compliance Auditing Teirn 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
Tenn 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.
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.
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3.4 Determination of Compliance.
On or before August 1 of each year during the Compliance Auditing Ten u, 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 Tenn.
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 RENTAL PROPERTY 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 Invent 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 I-Ivent 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
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 teuirinate
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
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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 -vent 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 Tenn has commenced, the
Terror 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 (in) neither party shall have any further
rights or obligations hereunder.
4.5 Sexually oriented business & Liquor Stores or Package Stores.
a. Owner understands and agrees that the City has the right to terruinate 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 an owner who will use the Required
Improvements as rental property 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 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
NEZ Tax Abatement with Joel Russell
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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 rental property 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 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
6. NOTICES.
All written notices called foi 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's Office
1000 Throckmorton
Fort Worth, Texas 76102
7. MISCELLANEOUS.
7.1. Bonds
and
Neighborhood Services Dept.
Attn Director
1000 Throckmorton
Fort Worth, Texas 76102
Owner
Joel Russell
3000 S Adams St.
Ft. Worth, TX 76110
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.
NEZ Tax Abatement with Joel Russell
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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 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/oi Required Improvements
7.5. City Council Authorization.
This Agreement was authorized by the City Council through approval of Mayor and
Council Communication No. C-27407 on August 4, 2015, 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,
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 tetra 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 StandinE.
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 m Tarrant County, Texas.
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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.
CITY OF FORT WORTH:
By(%Wtaio eqi
Fernando Costa
Assistant City Manager
ATTES
By:
Mary K
City Secretary
U
APPROVED AS TO FORM AND LEGALITY:
By:
Melinda Ramos
Sr. Assistant City Attorney
M & C: C-27407
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
NEZ Tax Abatement with Joel Russell
Approved by M&C C-27407, August 4, 2015
Page 9 of 11
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 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 day of
4-• , 2015.
(take vuouvr
taffy Public in and for
the State of Texas
STATE OF TEXAS §
COUNTY OF TARRANT §
LINDA M. HIRRLINGER
:*= MY COMMISSION EXPIRES
.rr February 2, 2018
. .
BEFORE ME, the undersigned authority, on this day personally appeared Joel Russell, 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.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this [afday of
2015:0, (1____ _,Ai x a
Notary • ublic in and fqr
the State of Texas
. .. i I....... a Y • ••• • IC It 1.
I ■ 1
elt . ei, ,,- SARAH J. ODLE
i ir
\ MY COMMISSION EXPIRES
scez
'ta/ Novembsr 5, 2015
1 h r .. ;,, di
NEZ Tax Abatement with Joel Russell
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Exhibit 1: Property Description
hxhibit 2: Application• (NEZ) Incentives and Tax Abatement
Exhibit 3: Required Improvements description including kind, number and location of the
proposed improvements.
NEZ Tax Abatement with Joel Russell
Appioved by M&C C-27407, August 4, 2015
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Exhibit 1
Property Description
2704 Virginia Court, Block 1, Lot 8, Jarrell Oakhurst Addition, an addition to the City of Fort
Worth, Tarrant County, Texas, as shown by a Deed of Record recorded in Volume 7257, Page
1022, of the Deed Records of Tarrant County Texas.
Exhibit 2
FORT WORTH
Application No. I`SZ%b " b(71a_q
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) PROGRAM
PROJECT CERTIFICATION APPLICATION
I. APPLICATION CHECK LIST - 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 the City Fort Worth
Non Refundable Application fee — For all Basic Incentives applications excluding Tax Abatement the
application fee is $25.00. For multifamily, commercial, industrial, community 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 reduced 11x17 floor plan, site plan, and site elevation with a written detailed project description that
includes a construction time line
A detailed line item budget showing the cost breakdown for the project
Copy of Incorporation Papers noting all principals, partners, and agents if applicable
Required - Meet with the Councilmember and Neighborhood & other Organizations representing the NEZ
as outlined in the Public Notice requirement of the NEZ Policy and Guidelines revised February 5, 2014 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 OF THE DATE OF
APPLICATION.
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 60 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 ALL
BUILDING PERMITS MUST BE PULLED WITHIN THE 12 MONTH PERIOD THAT CERTIFICATION WAS
APPROVED, OR WITHIN THE 12 MONTH PERIOD THAT 1HE TAX ABATEMENT WAS APPROVED, OR YOU
WILL BE REQUIRED TO RE -APPLY FOR NEZ INCENTIVES.
n
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C
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II. APPLICANT / AGENT INFORMATION
1. Applicant: J o En v S S C'.-�._ 2. Contact Person: Sk-M+
3. Address: 3 rs'rT0 S • A•,pA,,,.,_S Si` E.'T W `V "MCP i
Street City State Zip
4. Phone no.: t 7) 770, 7507 5. Fax No.: &j/�
6. Email: Y ..i71ZUSL4'a 6 Y4-Hoc Cerva.
7. Agent (if any) 1 /1,-
8. Address:
Street
9. P, ULM flu..
11. Email.
City State Zip
1a. Fax-Pt3.:
Revised July 23, 2014 1
FORT WORTH
ApplicationNo. lz } 6 0 1.2-9
PROJECT ELIGIBILITY
1. Please list 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 a map showing the location of the project.
Table 1 Property Ownership
Address Zip Code
(Protect Location)
12704 Via-Aid/A et Wei/
J4e2ECL O4-K,441./2St
APO er i o r"I
I.evnt
Subdivision Name 1 Lot No.
Block No.
Other properties owned in the City of Fort Worth - continue on a separate sheet and attach if necessary.
Seta A-CsankSSi 7CoffO
2. For each property listed in Table 1, please check the boxes below to indicate if:
• there are taxes past due; or
• there are City hens; 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 Property Taxes and City Liens
Property
Address Taxes
Due
2704 V,24,nit4 Ct n
■
■
■
n
n
(Please attach additional sheets of paper as needed.)
If there are taxes due or liens against any pro
for NEZ incentives
Weed
Liens
■
n
1
n
n
n
City Liens on Property
Board-up/Open Demolition Paving
Stucture Liens Liens Liens
■
n
n
n
n
n
n
■
n
u
u
1
1
Order of
Demolition
Revised July 23, 2014
2
1:
3. Do you own other properties under other names?
If Yes, please specify
4. Does the proposed project conform with City of Fort Worth Zoning? caYes n No
If no, what steps are being taken to insure compliance?
5. Project n ❑ U
Type: Single Family Multi- Family Commercial Industrial Community Facilities
nOwner Occupied
,Rents] Property
b. PIease describe the proposed residential or commercial project: C!
1W ,451 0 C all At--- g --N-Lak
7. If your project is a commercial, industrial, or mixed -use project, please describe the types of
businesses that are being proposed: Ai/A
nY
8. Is this a new construction or rehab project? [i New Construction ,Rehab
9. How much is the total development cost of your project? 445 '5 i K
10. Will the eligible rehabilitation work* be equal to at least 30% of the Tarrant Appraisal District
(TAD) assessed value of the structure during the year rehabilitation occurs? f'Yes r I No
*Eligible rehabilitation includes only physical improvements to real property. It does NOT include:
Front yard fencing consisting of chain -link or solid material construction; 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 structure during the year rehabilitation occurs.
11. How much is the total square footage of your project? ( 3 Lc `t square feet
* If:applying:fOr a tali: abatement please answer: questions 12;.� 16. If not=skip .to On IH `Incentives
12. For a single-family homeownership, mixed -use. or multi -family development project, please fill out
the number of residential units based on income range of owners or renters in the following table.
Table 3
Application No. M 2l 5-001a--A
•
Number of Residential Units and Income Range of Owners o
Th.
cotrie Range.•
> 80% of AMFI**
At or below 80% of AMFI
TOtal'Units:
Number of:Uivits ..
•
Renters
Percentage
Mixed -Use
**AMFI: Area Median Family Income. Please see attachment for income and housing payment guidelines.
13. For a multifamily nroiect to be qualified for tax abatement, at least 20% of total units shall be
affordable to families at or below 80% of AMFI. Check the box if you are requesting a waiver of this
requirement.
14. For a commercial.
residential space.
Commercial., ;:
industrial or community facilities project, indicate square footage of non-
square feet
Yliaust_rial '
square feet
•
mmuni .Facilities-
square feet
Revised July 23, 2014
3
FORT WORTH
Application No. WA
15. How much will be your Capital Investment*** on the project? Please use the following table to provide
the details and amount of your Capital Investment (Attached additional sheets if necessary).
Table 4 Itemized Budget of the Project
Items Amount Notes
Total
***Capital 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 or inventory).
16. For a commercial. industrial, community facility or mixed -use project, how many employees will the
project generate?
17. For a mixed -use project, please indicate the percentage of all uses in the project in the following table.
Table 5 Percentage of Uses in a Mixed -Use Project
Type i. Square Footage,
Residential
Office
Eating
Entertainment
Retail sales
Service
Total
III. INCENTIVES - What incentives are you applying for?
Municipal Property Tax Abatements
Must provide Final Plat Cabinet and Slide for Tax Abatement Cabinet
n 5 years ❑ More than 5 years
(Residential owner occupied ❑Residential Rental Property
Development Fee Waivers
eAll building permit related fees (including Plans Review and Inspections)
1
n
n
rn
Percentage
Slide
Apartments (5 plus units) E Commercial
Plat application fee (including concept plan, preliminary plat, final plat, short form replat)
Zoning application fee III Board of Adjustment application fee
Demolition fee U Structure moving fee
Community Facilities Agreement (CFA) application fee
Street and utility easement vacation application fee
Impact Fee Waivers - The maximum water/wastewater impact fee waiver amount
use, or community facility development project is equivalent to the water/wastewater
U Water (Meter Size
X elcase-of City --Liens
[1 Weed liens
it
(No. of meters
for a commercial, Industrial, mixed -
impact fee of two 6-inch meters
) n'Transportation
Paving liens [ I Board up/open structure liens
Demolition liens
Revised July 23, 2014
4
FORT WORTH
Application No. i' JD' - —001 an
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 requ• . • .y -e City.
cert./Lei.- (- • u S SELL
(PRINTED OR TYPED NAME) (AUTHORIZED SIGNATURE)
Pleasepail or fax yourapplication-to:
City of Fort Worth Planning:and Developr ientpepartrnvnt.
1000 Throektiiorton:Street;: Fort: Worth; .Texas 76102 _ : '.
Tel (817) 3924222 Tax: (817) 392 8116
Electronic version of this form is available on our website. For more information on the NEZ Program, please visit
our web site at www.fortworthgov.org/planninganddevelopment
For Office Use Only
Application No. 1Jz15-00t i29 In which NEZ? 56, ‘Pos
Application Completed Date (Received Date): (RI- 1 5 Conform with Zoning?
os/27c
(DA E)
Type? ❑v'S-F ❑ Multifamily f Commercial
Construction completion date? II Before NEZ
TAD Account No.
Meet affordability test?
Rehab at or higher than 30%7
Tax current on this property?
City liens on this property?
• Weed liens (J Yes
• Board-up/open structure liens ❑ Yes
• Demolition liens [1 Yes
• Paving liens ❑ Yes
• Order of dem ition • Yes
Certified? ❑ No Certified by
OS144r,51
ESYes ❑ No
®'Yes ❑ No
Q'Yes ❑ No
No
No
No
No
No
Council District q
E-Yes flNo
Industrial ❑ Community facilities ❑ Mixed -Use
After NEZ Ownership/Site Control 111 Yes ■ No
Consistent with the NEZ plan?
Minimum Capital Investment?
Meet mixed -use definition?
Tax current on other properties?
City liens on other properties?
• Weed liens
• Board-up/open structure Liens
• Demolition liens
• Paving liens
• Order of demolition
Date certification issued?
•
Erc.es n No
[WYes E No
[Yes n No
Rites ❑ No
❑ Yes m No
Yes No
No
No
No
•
❑ Yes
❑ Yes
P1Yes
If not certified, reason
-Referred to. Economic Deveiopmenr ❑Housing ❑ueveiopment ❑ Water LiCode UTPW
Revised July 23, 2014
5
Exhibit 3
Project Description
Rehabilitation of a single family residence including:
• Roof repair
• Plumbing upgrade
• Electrical upgrade
• Kitchen and bathroom remodel
• Flooring/Carpet replacement
• Interior and exterior painting & siding replacement
• Foundation repair
• HVAC repair/replace
• Landscaping
• New Windows
lA&C Review
Page 1 of 2
Official site of the City of Fort Worth, Texas
fftRTWoRuI
L. GEC®A_tr
1�!`
COUNCIL ACTION: Approved on 8/4/2016
DATE: 8/4/2015 REFI-RFNCF NO.:C-27407 LOG NAME: 17NS NEZ2704VIRGINIA
�;ODI�: C TYPE: NO
PUBLIC NO
CONSENT HEARING:
SUBJECT: Authorize Execution of a Five -Year Tax Abatement Agreement with Joel Russell for the
Rehabilitation of a Single -Family House on Property Located at 2704 Virginia Court in the
Six Points Neighborhood Empowerment Zone (COUNCIL DISTRICT 9)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a five-year Tax Abatement
Agreement with Joel Russell for the rehabilitation of a single-family house on property located at 2704
Virginia Court in the Six Points Neighborhood Empowerment Zone, in accordance with the
Neighborhood Empowerment Zone Tax Abatement Policy and Basic Incentives.
DISCUSSION:
Joel Russell (Property Owner) is the owner of the property described as Lot 8, Block 1, Jarrell
Oakhurst Addition, an addition to the City of Fort Worth, Tarrant County, Texas, as shown by a Deed
of Record recorded in Volume 7257, Page 1022, of the Deed Records of Tarrant County Texas, at
2704 Virginia Court, Fort Worth, Texas. The properly is located within the Six Points Neighborhood
Empowerment Zone (NEZ)
The Property Owner plans to invest an estimated amount of $50,400.00 to rehabilitate an
approximately 1,300 square foot single-family residence (Project). The Project will be used as rental
property.
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
N EZ Basic Incentives includes a five-year Municipal Property Tax Abatement on the increased value
of improvements to the qualified owner of any new construction or rehabilitation within the NEZ.
U pon 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 2016 at the estimated
pre -improvement value, as defined by the Tarrant Appraisal District (TAD) in July 2015, for the
property as follows:
P re -Improvement TAD Value of Improvements
P re -Improvement Estimated Value of Land
Total Pre -Improvement Estimated Value
$ 44,750.00
$ 10, 050.00
$ 64,800.00
The municipal property tax on the improved value of Project after construction is estimated in the
amount of $430.92 per year for a total amount of $2,154.60 over the five-year period. However, this
estimate may differ from the actual tax abatement value, which will be calculated based on the TAD
appraised value of the property.
In the event of a sale of this property, the NEZ Tax Abatement Agreement may be assigned to a new
owner's first mortgagee or a new owner as rental property. All other assignments must be approved
by the City Council.
http://apps.cfwnet.org/council packet/mc_review.asp?ID=21326&councildate-8/4/2015 08/12/2015
M&C Review Page 2 of 2
This property is located in COUNCIL DISTRICT 9, Mapsco TAR-0630.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that approval of the above recommendations
will have no material effect on the Fiscal Year 2015 budget. While no current year impact is
anticipated from this action, upon approval, reduced revenues will be included in the long-term
forecast associated with years 2016-2020.
TO Fund/AccountlCenters FROM Fund/Account/Centers
Submitted for City Manaaer's Office bv: Fernando Costa (6122)
Originating Department Head: Allison Gray (8187)
Additional Information Contact: Sarah Odle (7316)
ATTACHMENTS
2704 Virainia Ct Maa.odf
2704 Virginia Current Condition.ld.1
http://apps.cfwnet.org/council packet/mc_review.asp?ID=21326&councildate=8/4/2015 08/12/2015