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HomeMy WebLinkAboutContract 45797 (2)7 CITY SECIiETgRy CONTRACT NO. TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD EMPOWERMENT ZONE 1703 South Freeway 800 East Allen 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 T.M. Higgins, its duly authorized City Manager, and Spoon Industries Inc., ("Owner") of property located at 1703 South Freeway, Block 20, Lots 515 thru 517 & E 14.55' of Lot 518; Hyde Park Addition to the City of Fort Worth, Tarrant County, Texas According to the plat recorded in Volume 63, Page 9 Deed Records of Tarrant County, Texas and 800 East Allen Avenue, Block 20, Lot 523R; Hyde Park Addition to the City of Fort Worth, Tarrant County, Texas, according to the plat recorded in Volume 3 8 8-113, Page 200, 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. Chapter 378 of the Texas Local Government Code allows a municipality to create a neighborhood empowerment 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 NEZ, stating that the City elects to be eligible to participate in tax abatement and including guidelines and criteria governing tax abatement agreements entered into between the City and various third parties, titled "NEZ Basic Incentives", these were readopted on May 21, 2013 (Resolution No. 4209). D. The NEZ Incentives contains appropriate guidelines and criteria governing tax abatement agreements to be entered into by the City as contemplated by Chapter 312 of the Texas Tax Code, as amended (the "Code"). O'FW CIAL RECORD Page 1 of 11 ry SECRETARY NEZ Tax Abatement with Spoon Industries Inc. OR1H, TX \Approved by M&C C-26444, September 17, 2013 RECEI VEO JUL 2 820ig E. On November 6, 2012, the City Council adopted Ordinance No. 20487 ("Ordinance") re-establishing the Evans & Rosedale area as "Neighborhood Empowerment Reinvestment Zone No. 4," City of Fort Worth, Texas ("Zone") and adopted Resolution No. 4143 re-establishing "Designation of the Evans and Rosedale Area as a Neighborhood Empowerment Zone" (the "NEZ"). 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 construct a Convenience Store and Gas Station, more particularly described in Section 1 1 of this Agreement, on the Premises (the "Project"). H. On July 31, 2009 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 teens of this Agreement, and the Premises and Required Improvements, satisfy the eligibility criteria of the NEZ Incentives. K. Written notice that the City intends to enter into this Agreement along with a copy of this Agreement, has been furnished in the manner prescribed by the Code to the presiding officers of the governing bodies of each of the taxing units in which the Premises is located. NOW, THEREFORE, the City and Owner, for and in consideration of the terms and conditions set forth herein, do hereby contract, covenant and agree as follows: 1. OWNER'S COVENANTS. 1.1. Real Property Improvements. Owner shall construct, or cause to be constructed, on and within the Premises certain improvements consisting of a convenience store and gas station of at least 4600 square feet in size, and having a construction cost upon completion of $1,500,000.00 including site development costs but such minimum construction costs shall be reduced by any construction cost saving (collectively the "Required Improvements"). The type, preliminary site plan, and conceptual elevation of the Required Improvements are described in Exhibit "3". Tarrant Appraisal District must appraise the property (improvements and land) within 10% of $1,500,000.00. Owner shall provide a copy of the final construction invoices, and final site plan to City once it is approved by the Department of Development and the parties agiee that such final site plan; construction invoices shall Page 2 of 11 NEZ Tax Abatement with Spoon Industries Inc. Approved by M&C C-26444, September 17, 2013 be a part of this Agreement and shall be labeled Exhibit "4". The final site plan shall be in substantially the same fonn as the preliminary site plan. Minor variations, and more substantial variations if approved in writing by both of the parties to this Agreement, in the Required Improvements from the description provided in the Application for Tax Abatement shall not constitute an Event of Default as defined in Section 4.1, provided that the conditions in the first sentence of this Section 1.1 are met and the Required Improvements are used for the purposes and in the manner described in Exhibit "3". 1.2. Completion Date of Required Improvements. Owner covenants to substantially complete construction of all of the Required Improvements within two years from the date of Council approval of the tax abatement. The abatement will automatically teinnnate two years after Council approval if a building peirnit 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, including, without limitation, delays caused by adverse weather, delays in receipt of any required permits or approvals from any governmental authority, or acts of God, fires, strikes, national disasters wars, riots and material or labor restrictions, and shortages as determined by the City of Fort Worth in its sole discretion, which shall not be unreasonably withheld, but shall not include construction delays caused due to purely financial matters, such as, without limitation, delays in the obtaining of adequate financing. 1.3. Use of Premises. Owner covenants that the Required Improvements shall be constructed and the Premises shall be continuously used as a convenience store/gas station and in accordance with the description of the Project set forth in the Exhibit "3". In addition, Owner covenants that throughout the Teen, 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 real property tax abatement on the Premises, the Required Improvements, as specifically provided in this Section 2 ("Abatement"). Abatement of real property taxes only includes City of Fort Worth -imposed taxes and not taxes from other taxing entities. 2.1. Amount of Abatement. The actual amount of the Abatement granted under this Agreement shall be based upon the increase in value of the Premises and the Required Improvements over their values on January 1, 2013 after the demolition of the existing building and this amount is $0.00 the year in which this Agreement was entered into: Page 3 of 11 NEZ Tax Abatement with Spoon Industries Inc Approved by M&C C-26444 September 17, 2013 One Hundred percent (100%) of the increase in value from the construction of the Required Improvements. If the square footage requirement and the appraised value of the Required Improvements are less than as provided in Section 1.1 of this Agreement, except that such minimum construction costs shall be reduced by construction cost savings, Owner shall not be eligible to receive any Abatement under this 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 shall be based on the increase in value of the Premises over its value on January 1, 2013 after demolition, including the Required Improvements, up to a maximum of $2,250,000.00. In other words, by way of example only, if the increase in value of the Premises over its value on January 1 2013, including the Required Improvements, in a given year is $3,000,000.00, Owner's Abatement for that tax year shall be capped and calculated as if the appraised value of the Premises for that year had only been $2,250,000.00. 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. Term. The term of the Abatement (the "Term") shall begin on January 1 of the year following the calendar year in which a final certificate of occupancy is issued for the Required Improvements ("Beginning Date") and unless sooner terminated as herein provided, shall end on December 31 immediately preceding the fifth (5th) anniversary of the Beginning Date. 2.6. Abatement Application Fee. The City acknowledges previous receipt from 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 of refunded to any party for any reason. Page 4 of 11 NhZ Tax Abatement with Spoon Industries Inc Approved by M&C C-26444 September 17, 2013 3. RECORDS, AUDITS AND EVALUATION OF PROJECT. 3.1. Inspection of Premises. Between the execution date of this Agreement and the last day of the Tenn 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 teiurs 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 financial and business records of Owner that relate to the Project and Abatement terms 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 Tenn and if requested by the City, Owner shall provide information and documentation for the previous year that addresses Owner s compliance with each of the terms and conditions of this Agreement for that calendar year. 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 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 terms and conditions of this Agreement during the previous year of the Compliance Auditing Tenni. Page 5 of 11 NEZ Tax Abatement with Spoon Industries Inc. Approved by M&C C-26444, September 17, 2013 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 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 COMPLY WITH CHAPTER 7 AND APPENDIX B 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 deteurirines 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 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 hvent 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 hvent of Default will (i) harm the City's economic development and redevelopment efforts on the Premises and in the vicinity of the Premises; (ii) require unplanned and expensive additional administrative oversight and involvement by the City, and (iii) otherwise harm the City, and Owner agrees that the amounts of actual damages there from are speculative in nature and will be difficult or impossible to ascertain. Therefore, upon termination of this Agreement for any hvent 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 Page 6ofll NEZ Tax Abatement with Spoon Industries Inc Approved by M&C C-26444, September 17, 2013 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. 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 furthei rights or obligations hereunder. 4.5. Sexually oriented Business & Liquor Stores or Package Stores. a. Owner understands and agrees the City has the right to WI iinate this agreement if the Project contains or will contain a sexually oriented business. b. Owner understands and agrees that the City has the right to terminate this agreement as determined in City s sole discretion if the Project contains or will contain a liquor store or package store. 5. EFFECT OF SALE OF PREMISES. Company may assign this Agreement and all or any portion of the benefits provided hereunder to an Affiliate without the consent of the City, provided that (i) prior to or contemporaneously with the effectiveness of such assignment, Company provides the City with written notice of such assignment, which notice shall 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 Company under this Agreement For purposes of this Agreement, an `Affiliate ' means all entities, incorporated or otherwise, under common control with Company, controlled by Company or controlling Company. For purposes of this definition, "control" means fifty percent (50%) or more of the ownership determined by either value or vote. Company 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 teams and conditions of this Agreement and (ii) the proposed assignee agrees in writing to assume all terms and conditions of Company 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 11 NEZ Tax Abatement with Spoon Industries Inc. Approved by M&C C-26444, September 17, 2013 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: Owner: City of Fort Worth Spoon Industries Inc. Attn: City Manager Attn: Gary Weatherspoon 1000 Throckmorton 6934 Mesa Dr. Fort Worth, TX 76102 Fort Worth, TX 76132 and Housing & Economic Development Department Attn Jay Chapa, Director 1000 Throckmorton Fort Worth, TX 76102 7. MISCELLANEOUS. 7.1. Bonds. The Required Improvements will not be financed by tax increment bonds. This Agreement is subject to rights of holders of outstanding bonds of the City. 7.2. Conflicts of Interest. Neither the Premises nor any of the Required Improvements covered by this Agreement are owned or leased by any member of the City Council, any member of the City Planning or Zoning Commission or any member of the governing body of any taxing units in the Zone. 7.3. Conflicts Between Documents. In the event of any conflict between the City's zoning ordinances, or other City ordinances or regulations, and this Agreement, such ordinances or regulations shall control. In the event of any conflict between the body of this Agreement and Exhibit "3' , the body of this Agreement shall control. As of September 17, 2013, the City is unaware of any conflicts between this Agreement and the City's zoning ordinance or other ordinances or regulations. Page 8 of 11 NEZ Tax Abatement with Spoon Industries Inc Approved by M&C C-26444, September 17, 2013 7.4. Future Application. A portion or all of the Premises and/or Required Improvements may be eligible for complete or partial exemption from ad valorem taxes as a result of existing law or future legislation This Agreement shall not be construed as evidence that such exemptions do not apply to the Premises and/or Required Improvements. 7.5. City Council Authorization. This Agreement was authorized by the City Council through approval Mayor and Council Communication No. C-26444 on September 17, 2013, 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 pu'pose. The certificate, which if requested will be addressed to the Owner, shall include, but not necessarily be limited to, statements that this Agreement is in full force and effect without default (or if an Event of Default exists, the nature of the Event of Default and curative action taken and/or necessary to effect a cure), the remaining term of this Agreement, the levels and remaining term of the Abatement in effect, and such other matters reasonably requested by the party or parties to receive the certificates. 7.7. Owner Standing. Owner shall be deemed a proper and necessary party in any litigation questioning or challenging the validity of this Agreement or any of the underlying laws, ordinances, resolutions, or City Council actions authorizing this Agreement and Owner shall be entitled to intervene in any such litigation. 7.8. Venue and Jurisdiction. This Agreement shall be construed in accordance with the laws of the State of Texas and applicable ordinances rules, regulations, or policies of the City. Venue for any action under this Agreement shall lie in the State District Court of Tarrant County, Texas. This Agreement is performable in Tarrant County, Texas. 7.9. Severability. If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired. Page 9of11 NEZ Tax Abatement with Spoon Industries Inc Approved by M&C C-26444, September 17, 2013 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:� Fernando Costa Assistant City Manager ATTEST: By: eity Secret APPROVED AS TO FORM AND LEGALIT B � �� Y• Melinda Ramos Assistant City Attorney M & C: C-26444 By: X /Q2t1 -a Gary` w eatherspoon � President Page 10 of 11 NEZ Tax Abatement with Spoon Industries Inc. Approved by M&C C-26444, September 17, 2013 OFFICIAL RECORD ©HIV SECRETARY a frTN, f 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 41 day of , 2014. K otary Public in and for the�State of Tex.q VOnct /JGf.✓,Ge.s Notary's Printed Name STATE OF TEXAS § COUNTY OF TARRANT § .0111111/ g29•' • co ,'y:•0,0; -r- ```,` EVONIA DANIELS Notary Public, State of Texas My Commission Expires July 10, 2017 BEFORE ME, the undersigned authority, on this day personally appeared Gary Weatherspoon, President of Spoon Industries Inc., known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed, in the capacity therein stated and as the act and deed of Spoon Industries Inc. G VEN UNDER MY HAND AND SEAL OF OFFICE this el day of 211 Nota + lic in an The State of Texas Notary's Printed Name SARAN J. ODLE MY COMMISSION EXPIRES November 5, 2015 Page 11 of 11 NEZ Tax Abatement with Spoon Industries Inc. Approved by M&C C-26444, September 17, 2013 Exhibit 1: Property Description Exhibit 2: Application* (NEZ) Incentives and Tax Abatement Exhibit 3: Project description including kind, and number of the proposed improvements Exhibit 4: Final Construction Invoices Page 12 of 11 NFZ Tax Abatement with Spoon Industries Inc Approved by M&C C-26444, September 17, 2013 Exhibit 1 Property Legal Description 1703 South Freeway, Block 20, Lots 515 thru 517 & E 14.55' of Lot 518; Hyde Park Addition to the City of Fort Worth, Tarrant County, Texas According to the plat recorded in Volume 63, Page 9 Deed Records of Tarrant County, Texas and 800 East Allen Avenue, Block 20, Lot 523R Hyde Park Addition to the City of Fort Worth, Tarrant County, Texas, according to the plat recorded in Volume 388-113, Page 200, Deed Records, Tarrant County, Texas FORT WORTH L= e ll e h rc,\h act Exhibit 2 Application No. IkJ c A CITY OF FORT WORTH NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) PROGRAM PROJECT CERTIFICATION APPLICATION - "C"FOR DEVELOPMENT PROJ ECTS JECTS I. APPLICATION CHECK LIST Please submit the following documentation: ET A completed application form A list of all properties owned by the applicant, owner, developer, associates, principals, partners, and agents m Fort Worth Non Refundable Application fee - cashier's check or money order payable to the City of Fort Worth . For all Basic Incentives applications excluding Tax Abatement $25.00. For multifamily, commercial, industrial, commercial facilities, and mixed4-use tax abatement applications; 0.5% of the total Capital Investment of the project, with a $200.00 minimum and not to exceed $2,000.00, For residential tax abatement applications: $100.00 per house. Proof of ownership, such as a warranty deed, affidavit of heirship, or a probated will OR evidence of site control, such as option to buy (A registered warranty deed is required for tax abatement application.) Title abstract of the property (only if applying for release of City liens) A completed set of development plans, project description and development budget or contractor's quote Met with the Councilmember and Neighborhood & other Organizations representing the NEZ as outlined in the Public Notice requirement of the NEZ Policy and Guidelines revised April 6, 2004 or followed gutdehnes of NEZ Strategic Plan if a Strategic Plan is in place for the specific NEZ. Copy of Incorporation Papers noting all principals, partners, and agents Support letter from Woodhaven Neighborhood Association and Woodhaven Community Development Corporation (For projects located in Woodhaven NEZ only) INCOMPLETE APPLICATIONS WILL NOT BE PROCESSED FOR CERTIFICATION UNTIL ALL REQUIRED DOCUMENTS SHOWN IN THE ABOVE CHECKLIST ARE SUBMITTED WITHIN 30 .DAYS AFTER THE APPLICATION IS RECEIVED. YOU MUST APPLY FOR TAX ABATEMENT BEFORE ANY BUILDING PERMITS ARE ISSUED FOR YOUR PROPERTY AND BEFORE ANY IMPROVEMENTS ARE MADE TO YOUR PROPERTY. IT TAKES 60 TO 90 BUSINESS DAYS TO COMPLETE TI•IE TAX ABATEMENT AGREEMENT APPROVAL PROCESS AFTER THE ISSUANCE OF NEZ CERTIFICATION DEPENDING ON THE COMPLEXITY OF YOUR PROJECT NEZ PROJECTS MUST BE COMPLETED WITHIN THE 12 MONTH PERIOD THAT CERTIFICATION WAS APPROVED, OR WITHIN THE 12 MONTH PERIOD THAT THE TAX ABATEMENT WAS APPROVED, OK YOU WILL BE REQUIRED TO RE -APPLY FOR NEZ INCENTIVES. H. APPLICANT / AGENT WfORMATION • ■ 1. Applicant: 3. Address: 4. Phone no.: 6. Email: 7. Agent (if any) 8. Address: 9. Phone no.: k�LOWNE•2. Contact Person: ASO-THe tr,QAN g% nA nail pz, ,Oak-, k! Tay.. /.-�_ Street City I State Zip g7„9a-s'-47as 5. Fax No.: o.. ,fit t-4el) I & Aortvi C0m 65,3 T M SSA ��' ! r. 1 �bl�if�/ 172C -21 ot Street City State Zip 2(-1--a-') 269LS l f7-9bc Saar 10,1'axNo.: .8f7`c;./ ' 1S2s- 11. Email: A (c 2ti oA) � -j �1 I>2 Alt et) If you need further information or clarification, please contact Development Division/ Customer Service at 817-392-2222. Revised September 25, 2007 1 FORT WORTH Application No. PROJECT ELIGIBILITY 1. Please list down the addresses and legal descriptions of the project and other properties your organization owns in Fort Worth. Attach metes and bounds description if no address or legal description is available. Attach an exhibit showing the location of the project. Table 1 1103 Property Ownership Address (Project Location) ciZ8 S W Il N Zip Codc laAla T,egsd n.eserty n Subdivision Name Lot No. !/®a ?Ala I/toi r iots s!nY? 1 I Block No. 40 Other properties owned in the City of Fort Worth - continue on a separate sheet and attach if necessary. G, 9.35 iY1 SSA 4?2 r 26t(. '.3- Nulso sArao 45 29 / RQINT,olJ 74/1-Cs A&Tra fka9GG Rflvlr,►ai) Il l6 I -3 (Please attach additional sheets of paper as needed) 2. For each properties listed in Table 1, please cheek the boxes below to indicate if: • • Table 2 there are taxes due; or there are City liens; or You (meaning the applicant, developer, associates, agents, principals) have been subject to a Building Standards Conunission s Order of Demolition where the property was demolished withm the last five years Property Taxes and City Liens Address Property Taxes Due ri o ; Scatilin 3ruv eq- plc ❑ n • ■ ■ City Liens on Property Weed Board-up/Open Liens Stucture Liens ■ n u u n ■ • ❑ ❑ I rl (Please attach additional sheets of paper as needed) Revised September 25, 2007 2 0 n u 0 CI Demolition Liens ■ Paving Liens r n ■ ❑ IOrder of Demolition u u u Cl ■ FORT WORTH Application No. 3. Do you own other properties under other//names? [WYes [] No If Yes, please specify �' ©a— try �%� i6 f v s JNi team -soa am L` /-6kCSai /iVG 4. Does the proposed project conform with City of Ptirt Worth Zoning? 1 1 No If no, what steps are being taken to insure compliance? 5. Project Type: • Single ❑� ❑ ❑ ❑ Multi- Commercial Industrial Community Mixed -Use Family Family Facilities 6. If your project is a commercial, industrial, or mixed -use project, please describe the types of businesses that are being proposed: CQ IV U E N kiG E. S7"©A E &O GF_S sr 7A—no 7. Is this a new construction or rehab project? 1 levy Construction ❑ Rehab 8. How much is the total development cost of your project? 2) O sot coo, 04 9. Will the eligible rehabilitation work* equal to at least 30% of the Tarrant Appraisal District (TAD) assessed value of the structure during the year rehabilitation occurs? ( 1 Yes [1 No * Eligible rehabilitation includes only physical improvements to real property. It does NOT include personal property such as furniture, appliances, equipment, and/or supplies. Total eligible rehabilitation costs shall equal to or exceed 30% of the TAD appraised value of the structure during the year rehabilitation occurs. 10. How much is the total square footage of your project?oQ square feet tr 1t For a single family homeownership, mixed -use, or multi -family development nroiect, please fill out the number of residential units based on income range of owners or renters in the following table. Table 3 Number of Residential Units and Income Range of Owners or Renters • Income -Range > 80% of AMFI** At or below 80% of AMFI Total Units:..... .. , .. • Number of Units _ :percer "AMP': Area Median family Income_ please see attachment for incozne and housing payment guidelines. 12. For a multifamily protect to be qualified for tax abatement, at least 20% of total units shall be affordable to families at or below 80% of AMFL Check the box if you are requesting a waiver of this requirement. ❑ 13. For a commercial, industrial or community facilities proiect, indicate square footage of non- residential space Commercial Industrial Community Facilities 6Q PLEASE ANSWER QUESTIONS NO.14 TO NO. 16 ONLY IF YOU ARE APPLYING FOR TAX ARA'lC.l✓MENT% square feet Revised September 25, 2007 3 square feet square feet FORT WORTH Application No. 14. 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 Capital Investment of the Project Ttemss: ‘AMOnfit' AtilDboa ,i gtat s2ci71 12 nof coo. on 'Notes:; 411/it saa, opo, oo W000io}; ssr �A#tJK "*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). 15. For a commercial, industrial, community facility or mixed -use project, how many employees will the project generate? a&. 16. For a mixed -use nroiect, please indicate the percentage of all uses in the project in the following table, Table 5 Percentage of Uses in a IVhxed-Use Project otal.:. ... •• COD aetj� Residential Office Eating Entertainment Retail sales Service Total Scjuare:Footage -S"Ot a too III. INCENTIVES 1. What incentives are you applying for? Municipal Property Tax Abatements '? ' I'e>rcen . `0 Must provide Final Plat Cabinet and Slide for Tax Abatement Cabinet Slide ri{'' S years n More than 5 years Development Fee Waivers mCAli building permit related fees (including Plans Review and Inspections) Iat application fee (including concept plan, preliminary plat, final plat, short form replat) oard of Adjustment application fee Demolition fee v $tructure moving fee Community Facilities Agreement (CFA) application fee Zoning application fee Street and utility easement vacation application fee WAD act a Waivers Impact fee Release of City Liens ae-Weed liens E3' oard up/open structure liens Revised September 25 2007 Meter Size 4 a. No. of meters? Paving liens Demolition liens FORT WORTH Application No. N I. 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. information for determining eligibility as requested by the City. cod WaRragsPoola aph (TYPED NAME) (AUTHORIZEDS NATURE) III I • • Please mall or faz�your application,to I agree to provide any additional Revised Aug. 2013 ofFort Worth Planning:aitd,Developittent.Departinent,. Customer Service,: :X000 Throckmortor� Street;;Fort North, Texas.'761t)2 �:Telr(9i?)392:2222; fat:(817j,392-81Zi ... (DATE) 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. NZ' 6- CS c NI In which NEZ? �,,%,is t jjceJ ,. Council Distric Application Completed Date (eceived Date): 70, 5 C-- r} q Conform with Zoning? Type? SF n Multi Construction completion date? TAD Account No Meet affordability test? Rehab at or higher than 30%? Tax current on this property? City liens on this property? • Weed liens • Board-up/open structure liens • Demolition liens • Paving Hens • Order demolition ■ n Commercial ❑ Industrial ❑ Cotnmuniry faciliti Before NEZ El After NEZ Ownership/Site Control n/./%" No No • Yes ❑ No No YesNP No ❑ Yes No Y No No Yes j1 No Certified by If not certified reason 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? Yes C1No Mixed -Use -'Yes [I No Yes 0 No Yes ❑ No Y'es4 j No Yes; ■ No ❑ Yes `® No ❑ Yes No [� Y] No 0 Yes No ❑Yee`` L,._., (/ ko Referred to: []Economic Development Ell -lousing CjPlanning&Development ❑Water IN Code ■TPW Revised September 25, 2007 5 Exhibit 3 Protect Description A single story Gas Station/Convenience Store consisting of approximately 4600 square feet with a minimum of 8 fueling stations The construction will be native stone veneer and stucco on exterior walls, concrete parking lot and appropriate landscaping. Exhibit 4 Final Construction Invoices Will be provided to City after construction is complete and final Certificate of Occupancy is issued. M&C Review CITY COUNCIL AGENDA DATE• CODE• SUBJECT: COUNCIL ACTION: Approved on 9/17/2013 9/17/2013 REFERENCE NO.. C TYPE' C-26444 NON - CONSENT L OG NAME: 17NEZSOUTHFRWY2 P UBLIC HEARING• NO Authorize Execution of a Five -Year Tax Abatement Agreement with Spoon Industries Inc., for the Properties Located at 1703 South Freeway and 800 East Allen Avenue in the Evans and Rosedale Neighborhood Empowerment Zone (COUNCIL DISTRICT 8) RECOMMENDATION: It is recommended that the City Council authorize execution of a Five -Year Tax Abatement Agreement with Spoon Industries Inc., for the construction of a Convenience Store and Gas Station located at 1703 South Freeway and 800 East Allen Avenue in the Evans and Rosedale Neighborhood Empowerment Zone. DISCUSSION": On May 3, 2011, (M&C C 24897, City Secretary Contract No. 41989) the City Council approved a Five -Year Municipal Tax Abatement with Spoon Industries Inc. (Property Owner), for the construction of a Convenience Store and Gas Station at 1703 South Freewa jand 800 East Allen Avenue. The proposed project could not be constructed as planned because the Property Owner could not secure the ownership of a small adjacent property required for the project and the Abatement Agreement required completion of the project within two years of City Council approval. Since completion of the project was not met, the Agreement was terminated. The Property Owner has revised the scope of the project and is ready to move forward with construction. A new Abatement Agreement is required since the previous Agreement was terminated. The Property Owner/plans to invest an estimated amount of $1,500,000.00 to construct an approximately 4600 square foot Convenience Store and Gas Station (Project). The P roject will be located at 1703 South Freeway described as Block 20, Lots 515 thru 517 and E 14 55 feet of Lot 518 in the Hyde Park Addition and 800 East Allen Avenue described as Block 20, Lot 523R in the Hyde Park Addition to the City of Fort Worth in the Evans and Rosedale N eighborhood Empowerment Zone (NEZ). The proposed elevation and map location are attached as Exhibit A. The Housing and Economic Development Department reviewed the application and certified that the Project met the eligibility criteria to receive a Municipal Property Tax Abatement. The NEZ Tax Abatement Policy and 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 2014. At this time Tarrant Appraisal District has the improvements on the property valued in the amount of $6,500.00. The Property Owner has planned to demolish the existing building on the FORT WORTH http://apps.cfwnet.org/council_packet/mc review.asp?ID=18985&councildate=9/17/2013[09/17/2013 3:10:06 PM] M&C Review property so the pre -improved value for tax abatement purposes will be $0.00. The Municipal Property Tax Abatement on the improved value of the Project after construction is estimated in the amount of $12,825.00 per year for a total amount of $64,125.00 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. In the event of a sale of this property, the Tax Abatement Agreement may be assigned to an affiliate without the consent of the City Council or to a new owner with City Council approval, only if 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 8. FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that this action will not increase the total appropriations of City funds. TO Fund/Account/Centers FROM Fund/Account/Centers Submitted for City Manager's Office bv: Fernando Costa (6122) Oriainatina Denartment Head: Cynthia Garcia (8187) Additional Information Contact: Sarah Odle (7316) ATTACHMENTS Exhibit A.odf http://apps.cfwnet.org/council_packetlmc review.asp?ID=18985&councildate=9/17/2013[09/17/2013 3:10:06 PM]