HomeMy WebLinkAboutContract 44902 (2)�;4.. -! .��,
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TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD
EMPOWERMENT ZONE
2812 Townsend Drive
This TAX ABATEMENT AGREEMENT ("Agreement") is entered into by and between the
CITY OF FORT WORTH, TEXAS (the "City"), a home rule municipal corporation organized under
the laws of the State of Texas and acting by and through T.M. Higgins, its duly authorized Assistant City
Manager, and Saji Alummuttil, Manager of Modern Ground LLC ("Owner"), owner of property located
at 2812 Townsend Drive, Block 19, Lot 4, Frisco Heights Addition an Addition to the City of Fort Worth,
Tarrant County, Texas, according to the plat recorded in Volume 6041 Page 382, of the Plat Records of
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 (NEZ) if the municipality determines that the creation of
the zone would promote:
(1) The creation of affordable housing, including manufactured housing in the zone;
(2) An increase in economic development in the zone;
(3) An increase in the quality of social services, education, or public safety provided to
residents of the zone; or
(4) The rehabilitation of affordable housing in the zone.
B. Chapter 378 of the Texas Local Government Code provides that a municipality that creates a
NEZ, may enter into agreements abating municipal property taxes on property in the zone.
C. On July 31, 2001, the City adopted basic incentives for property owners who own property
located in a NEZ, stating that the City elects to be eligible to participate in tax abatement and
including guidelines and criteria governing tax abatement agreements entered into between
the City and various third parties, titled "NEZ Basic Incentives", these were readopted on
May 21, 2013 (Resolution No. 4209).
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 February 3, 2009, the City Council adopted Ordinance No. 15815 ("Ordinance")
establishing "Neighborhood Empowerment Reinvestment Zone No. 13," City of Fort Worth,
Texas ("Zone").
F. Owner owns certain real property located entirely within the Berry/University NEZ and that
is mare particularly described in Exhibit "1 ", attac���e�P+��nd-h rPhv ade a part of this
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G. Owner or its assigns plan to construct the Required Improvements, as defined in Section 1.1
of this Agreement, on the Premises to be used as a single-family residence that will be
Owner occupied.
H. On June 20, 2013, 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 finds that the contemplated use of the Premises, the Required
Improvements, as defined in Section 1.1, and the terms of this Agreement are consistent with
encouraging development of the Zone in accordance with the purposes for its creation and
are in compliance with the NEZ Incentives, the 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, 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 Propertv Improvements.
Owner shall construct, or cause to be constructed, on and within the Premises certain
improvements consisting of a single-family residence, of at least 1300 square feet in size and built
to the specifications listed in Exhibit "3" (collectively the "Required Improvements"). Tarrant
Appraisal District must appraise the property (improvements and land) within 10% of
$130,000.00. Owner shall provide a final survey of the home upon completion of the Required
Improvements. The parties agree that the final survey shall be a part of this Agreement and shall
be labeled Exhibit "4". Minor variations and more substantial variations if approved in writing by
both parties to this Agreement before construction is undertaken in the Required Improvements
from the description provided in the Application for Tax Abatement shall not constitute an Event
of Default, as defined in Section 4.1, provided that the conditions in the first sentence of this
Section l.l are met and the Required Improvements are used for the purposes and in the manner
described in Exhibit "3"
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1.2. Completion Date of Required Improvements.
Owner certifies that the Required Improvements will be completed within two years from the
issuance and receipt of the building permit, unless delayed because of force majeure, in which case
the two years shall be extended by the number of days comprising the specific force majeure. For
purposes of this Agreement, force majeure shall mean an event beyond Owner's reasonable control
as determined by the City of Fort Worth in its sole discretion, which shall not be unreasonably
withheld, including, without limitation, delays caused by adverse weather, delays in receipt of any
required permits or approvals from any governmental authority, acts of God, or fires. Force majeure
shall not include construction delays caused due to purely financial matters, such as, without
limitation, delays in the obtaining of adequate financing.
1.3. Use of Premises.
Owner covenants that the Required Improvements shall be constructed and the Premises
shall be sold so that it is continuously used as the primary residence of the Home Buyer in
accordance with the description of the Project set forth in the Exhibit "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 on January l,
2013, the year in which both parties executed this Agreement.
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, 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.
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3.
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 sold to a Home Buyer ("Beginning Date")
and, unless sooner terminated as herein provided, shall end on December 31 immediately
preceding the fifth (5`t') anniversary of the Beginning Date.
2.4 Protests Over Appraisals or Assessments.
Owner shall have the right to protest and contest any or all appraisals or assessments of the
Premises and/or improvements thereon.
2.5. Abatement Application Fee.
The City acknowledges receipt from Owner of the required Application fee of $100.00.
The application fee shall not be credited or refunded to Owner or its assigns for any reason.
RECORDS, AUDITS AND EVALUATION OF REQUIRED IMPROVEMENTS.
3.1. Insuection of Premises.
Between the execution date of this Agreement and the last day of the Term, at any time
during normal office hours throughout the Term and the year following the Term and following
reasonable notice to Owner, the City shall have and Owner shall provide access to the Premises in
order for the City to inspect the Premises and evaluate the Required Improvements to ensure
compliance with the terms and conditions of this Agreement. Owner shall cooperate fully with the
City during any such inspection and/or evaluation.
3.2. Certification.
Owner shall certify annually to the City that it is in compliance with each applicable term of
this Agreement. The City shall have the right to audit at the City's expense the Required
Improvement with respects to the specifications listed in E�ibit "3". Owner must provide
documentation that Owner is using the Required Improvements as its primary residence
(collectively, the "Records") at any time during the Compliance Auditing Term in order to determine
compliance with this Agreement. Owner shall make all applicable Records available to the City on
the Premises or at another location in the City following reasonable advance notice by the City and
shall otherwise cooperate fully with the City during any audit.
3.3 Provision of Information.
On or before March 1 following the end of every year during the Compliance Auditing Term
and 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.
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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 Term.
4. EVENTS OF DEFAULT.
41. Defined.
Unless otherwise specified herein, Owner shall be in default of this Agreement if (i) Owner
fails to construct the Required Improvements as defined in Section 1.1.; (ii) ad valorem real property
taxes with respect to the Premises or the Required Improvements, or its ad valorem taxes with
respect to the tangible personal property located on the Premises, become delinquent and Owner
does not timely and properly follow the legal procedures for protest and/or contest of any such ad
valorem real property or tangible personal property taxes; (iii) OWNER DOES NOT USE THE
PREMISES AS PRIMARY RESIDENCE ONCE THE ABATEMENT BEGINS; or (iv)
OWNER DOES NOT COMPLY WITH CHAPTER 7 AND APPENDIX B OF THE CODE
OF ORDINANCES OF THE CITY OF FORT WORTH (collectively, each an "Event of
Default").
4.2. Notice to Cure.
Subject to Section 5, if the City determines that an Event of Default has occurred, the City
shall provide a written notice to Owner that describes the nature of the Event of Default. Owner
shall have sixty (60) calendar days from the date of receipt of this written notice to fully cure or
have cured the Event of Default. If Owner reasonably believes that Owner will require additional
time to cure the Event of Default, Owner shall promptly notify the City in writing, in which case
(i) after advising the City Council in an open meeting of Owner's efforts and intent to cure, Owner
shall have ninety (90) calendar days from the original date of receipt of the written notice, or (ii) if
Owner reasonably believes that Owner will require more than ninety (90) days to cure the Event of
Default, after advising 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.
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4.3. Termination for Event of Default and Pavment of Liquidated Dama�es.
If an Event of Default which is defined in Section 4.1 has not been cured within the time
frame specifically allowed under Section 4.2, the City shall have the right to terminate this
Agreement immediately. Owner acknowledges and agrees that an uncured Event of Default will
(i) harm the City's economic development and redevelopment efforts on the Premises and in the
vicinity of the Premises; (ii) require unplanned and expensive additional administrative oversight
and involvement by the City; and (iii) otherwise harm the City, and Owner agrees that the amounts
of actual damages there from are speculative in nature and will be difficult or impossible to
ascertain. Therefore, upon termination of this Agreement for any Event of Default, Owner shall
pay the City, as liquidated damages; all taxes that were abated in accordance with this Agreement
for each year when an Event of Default existed and which otherwise would have been paid to the
City in the absence of this Agreement. The City and Owner agree that this amount is a reasonable
approximation of actual damages that the City will incur as a result of an uncured Event of Default
and that this Section 4.3 is intended to provide the City with compensation for actual damages and
is not a penalty. This amount may be recovered by the City through adjustments made to Owner's
ad valorem property tax appraisal by the appraisal district that has jurisdiction over the Premises.
Otherwise, this amount shall be due, owing and paid to the City within sixty (60) days following
the effective date of termination of this Agreement. In the event that all or any portion of this
amount is not paid to the City within sixty (60) days following the effective date of termination of
this Agreement, Owner shall also be liable for all penalties and interest on any outstanding amount
at the statutory rate for delinquent taxes, as determined by the Code at the time of the payment of
such penalties and interest (currently, Section 33.01 of the Code).
4.4. Termination at Will.
If the City and Owner mutually determine that the development or use of the Premises or the
anticipated Required Improvements are no longer appropriate or feasible, or that a higher or better
use is preferable, the City and Owner may terminate this Agreement in a written format that is
signed by both parties. In this event, (i) if the Term has commenced, the Term shall expire as of the
effective date of the termination of this Agreement; (ii) there shall be no recapture of any taxes
previously abated; and (iii) neither party shall have any further rights or obligations hereunder.
4.5 Sexuallv oriented business & Liquor Stores or Packa�e Stores.
a. Owner understands and agrees that the City has the right to terminate this
agreement if the Required Improvements contains or will contain a sexually oriented business.
b. Owner understands and agrees that the City has the right to terminate this
agreement as determined in City's sole discretion if the Required Improvements contains or will
contain a liquor store or package store.
5. EFFECT OF 5ALE OF PREMISES.
Except for an assignment to Owner's first mortgagee or to a homebuyer who will use the Required
Improvements as its primary residence or the homeowner's mortgagee which City Council hereby agrees to,
the Abatement granted hereunder shall vest only in Owner; however if Owner sells the Premises and
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Required Improvements, this Abatement cannot be assigned to a new owner of all or any portion of the
Premises and/or Required Itnprovements 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 ineeting the terms and conditions of this Agreement and (ii) the proposed purchaser agrees in
writing to assume ali terms and conditions of Owner under this Agreement. Owner may not otherwise
assign, lease or convey any of its rights under this Agreement. Any attempted assignment without the City
Council's prior consent shall constitute grounds for termination of this Agreement and the Abatement granted
hereunder following ten (10) calendar days of receipt of written notice from the City to Owner.
Upon assignment to Owner's first mortgagee, or to a homebuyer who will use the Required
Improvements as its primary residence or the homeowner's mortgagee, Owner shall have no further
obligations or duties under this Agreement. In addition, upon assignment to any other entity with the
written consent of City Council, Owner shall have no further duty or obligation under this
Agreement.
IN NO EVENT SHALL THE TERM OF THIS AGREEMENT BE EXTENDED IN THE EVENT
OF A SALE OR ASSIGNMENT.
THE FAILURE OF OWNER TO SEND THE CITY NOTIFICATION OF THE 5ALE 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 for or required by this Agreement shall be addressed to the following, or
such other party or address as either party designates in writing, by certified mail, postage prepaid, or by
hand delivery:
City:
City of Fort Worth
Attn: City Manager's Office
1000 Throckmorton
Fort Worth, Texas 76102
and
Housing & Economic Development Dept.
Attn: Jay Chapa, Director
1000 Throckmorton
Fort Worth, Texas 76102
Owner:
Modern Ground LLC
Saji Alummuttil
2921 W. Sth Street
Fort Worth, Texas, 76107
7. MISCELLANEOUS.
7.1. Bonds
The Required Improvements will not be financed by tax increment bonds. This Agreement
is subject to the rights of holders of outstanding bonds of the City.
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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 ar regulations shall control. In the event of any
conflict between the body of this Agreement and E�ibit "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/or Required Improvements.
7.5. Citv Council Authorization.
This Agreement was authorized by the City Council through approval of Mayor and
Council Communication No. C-26364 on September 17, 2013, which, among other things
authorized the City Manager to execute this Agreement on behalf of the City.
'7.6. Estoppel Certi�cate.
Any party hereto may request an estoppel certificate from another party hereto so long as the
certificate is requested in connection with a bona fide business purpose. The certificate, if requested,
will be addressed to the Owner, and shall include, but not necessarily be limited to, statements that
this Agreement is in full force and effect without default (or if an Event of Default exists, the nature
of the Event of Default and curative action taken and/or necessary to effect a cure), the remaining
term of this Agreement, the levels and remaining term of the Abatement in effect, and such other
matters reasonably requested by the party or parties to receive the certificates.
7.7. Owner Standin�.
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.
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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.
710 Headin�s 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. Entiretv of A�reement.
This Agreement, including any e�ibits 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:
:
Assistant City Manager
ATTE
By:
City Secretary
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OWNER:
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Manager
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OFFICIAL RECORD
���'�' ��CR@'iARY
a �L'����T�, TX
,
Fernando Costa
APPROVED AS TO FORM AND LEGALITY:
By: ' '�` �� �
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Melinda Ramos
Assistant City Attorney
M & C: G26364
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 Ciiy 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
j � , 2013.
�� • �� . ; - - —
I�Iotary Public in and
the State of Texas
Notary's Printed Name
EVONIA DANIELS
Notary Public, State of Texas
My Commisslon Explres
�u�y to, 2ot�
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STATE OF TEXAS
COUNTY OF TARRANT
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BEFORE ME, the undersigned authonty, on this day personally appeared Sa�i Alummuttil, Manager of
Modern Ground LLC, 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 for Modern Ground LLC.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this
�_, 2013.
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SAAAHJ.ODL�
MY COMMISSION E.XPIReS
Novsrtiber 5, 20i 5
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Notary Public in and fo� \
the State of Texas v
Exhibit 1:
Exhibit 2
Property Description
Application: (NEZ) Incentives and Tax Abatement
Exhibit 3: Required Improvements description including kind, number and location of the proposed
improvements.
Exhibit 4: Final Survey
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Exhibit "1"
Property Description
2812 Townsend Drive, Block 19, Lot 4, Frisco Heights Addition an Addition to the City
of Fort Worth, Tarrant County, Texas, according to the plat recorded in Volume 6041
Page 382, of the Plat Records of Tarrant County, Texas.
�� �► � ��
t�pplication No.
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) PROGRAM
PROJ�CT CERTIFICATION APPLICATION
Exhibit 2
I. APPLICATION CHECK LIST - Please submit the following documentation:
:� A completed application form
}� A list of all properties owned by the app(icant, owner, developer, associates, principals, parmers, and agents
,� in the Citv F�rt W�rth
£� Non Refi�ndable Application fee — For all Basic Incentives a�plications escluding Tax Abatement the
application fee is $25.00. For multifamily, commet•cial, industrial, commercial facilities, and ►nixed-use tax
abatement applications: 0.5% of the total Capital Investment ofthe project, with a$200.00 minimum and
not to exceed $2,OOQ.00; For residential tax abatement applications: $104.00 per house.
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Proof of ownership, such as a wai-ranty deed, affidavit of heirship, or a probated wi (1 OR evidence of site
control, such as option to buy (A registerecl warranty deed is required for tax abatement application.)
Title abstract of the property (anIy if applying for release of City liens}
A reduced 1 Ix17 floorplan, site plan, and site elevation with
a written detaited project description that includes a construction time line
A detailed line item budget showing the cost breakdown for the project
�]" Copy uf Incorporation Papers noting all principals, partners, and agents if applicable
� Reaaired - Meet with the Councilmember and Neighborhood & other Organizations representing the NEZ
as outlined in the Pubtic Notice requirement of the NEZ Policy and Guidelines revised April 6, 2004 or
followed guidelines ofNEZ Sti•ategic Plan if a Strategic Plan is in place for the specific NEZ.
❑ Support letter from Woodha�en Neighborho�d Associatian and Woodhaven Community Development
Corporation (For projects located in Woodhaven NEL onty)
INCOMPLET� APNLICATIONS W1LL NOT BE PROCESSED FOR CERTIF'ICATION UNTIL ALL REQUIRED
DOCUMGNTS SHOWN IN T'HE ABOVE CH�CKLIST ARE SUBMITTED WITHIN 30 DAYS AFTER THE
APPLiCATION IS RECEIVED.
YOU MUST APPL.Y FOR TAX ABATEMENT BEFORE ANY BUILDING PERMITS ARE t55UED FOR YOUR
PROPERTY AND BEFORE ANY IMPROVEMEtYTS ARE MADE 'I'O YOUR PROPERTY. IT TAKES 60 TC3 90
BUSINESS DAYS TO COMPLETE THE TAX ABATGMENT AGREEMENT APPROVAL PROCESS AFTER THE
ISSUANCE OF NEZ CERT[FICATTON DEPENDING �N 'THE COMPLEXITY OF YOUR PROJGCT. ALL
BUILD[IYG PERMITS MUST BE PULLGD WTTH[N THE 12 MONTH PERIDD THAT CERTIFICATION WAS
APPROV�D, OR WiTHIN THE 12 MONTH PERIOD THAT THE TAX ABATEMGNT WAS APPROVED, OR YO[J
WILL BE REQU[RED TU R�-APPLY FOR (YEZ tNCENTIV�S.
II. APPLICANT / AGENT INFORMATION
1. Applicant: �=�������`i ���+��� ���
3. Address: � � ��� ���� � ��
Street
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City State Zip
Fax IYo.:
4. Phone no.: �� �a � y iy'�� �. � � � � 5.
6. Email: `j�.���� ���g� � ��: {`� ���,#' � . �
7. Agent (if any)
8. Address:
9. Phone no.:
11. Email:
Street
City State Zip
10. Fax No.:
Revised July 22, 2010
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PROJECT ELIGIBILITY
Application No.
1. Please tist down the addresses and Iegal 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 o€ the project.
Table 1
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Add ress
'ect Location
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Zip Code
Subdivision Name � Lot Na � Block No.
Other properties owned in the City of Fort Worth - continue on a separate sheet and attach if necessary.
2. For each property listed in Table 1, please check the boxes below to indicate if:
s
.
Table 2
there are ta�es past due; or
there are City liens; or
You (meaning the applicant, developer, associates, agents, principals) have been subject to a Building
5tandards Commission's Order of Demolition where the property was demolished within the last five
years.
Address
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Taxes and Ci Liens
Property
Taxes
Due
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(Please attac6 additiona► sheets of paper as needed.}
City Liens on Property
Weed Soard-up/Open Demolition Paving
Liens Stucture Liens Liens Liens
Order of
Demolition
If there are taxes due or liens against any property in the City of Fort Worth you mav not be eligible
far NEZ incentives
Revised July 22, 2010 �
Fa�°r WoxrH
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3. Do you own other properties under other names? � Yes [� No
If Yes, p(ease specify �,�i 3 �. �s��� ��� ; `��`��� `����� ��"
4. Does tlie proposed project conform `vith City of Fort Worth Zoning?
If no, what steps are being taken to insure compliance?
5. Project � � � �
6.
� Yes ❑ No �" � �
"�� �.� ���a ��
���u�
❑ � ❑
Type: I Sin�;le Family � Multi- Family I Commercial I Industrial I Community Facilities' Mixed-Use
� OrvnerOccopied
❑ Rental Property
'tease describe the proposed residential or wmmerciai project: �'�� �� ,�°���� ������
7. If your project is a commercial, industria(, or mixed-use praject, please describe the ty, pes of
businesses that are being proposed: a��
S. Is this a new construction or rehab project? � New Construction ❑ Rehab
9. How much is the total development cost of yaur project? ���g���
10. Will the eligible rehabilitation �vork* equal to at least 3U% of the Tarrant Appraisal District (TAIJ)
assessed vaiue of the structure during the year rehabititation occurs? ❑ Yes ❑ No ���
*Eligible rehabilitation inctudes only physical improvements to real property. It does NOT include:
Front yard fencing consisting of chain-link or solid material constraction; persona) property such as furniture,
appliances, equipment, and/or supplies. Total eligibie rehabilitation costs shall equal to or exceed 30% of the
TAD appraised value of the structure during the year rehabilitation accurs.
ll. Ho�� much is the total square footage ofyour project?
9 �'� � a�
square feet
''° If applying for a tax abatement piease answer questions 12 —16. If not skip to paY•t III Incentives
12. For a single-familv homeownershiq, mixed-use or multi-familV development praject, p(ease fill out
the number of residential units based an income ran$e of o�vners or renters in the following table.
Table 3 Ptumber of Residential Units and Income Ran e of Otivners or Renters
Number of Units
Income Ran�e
> 80% oti AMFI**
At ar below SO% of AMFI
Total Units
Percentage
;�����
��
*�AMFL Area Median Family Income. Please see attachment for income and housing payment guidelines.
13. For a multifamilv proiect to be qualified for tax abatement, at least 20% of total units shall be
affordable to families at ar belo�v SO% of AMFI. Check the box if you are requesting a waiver of this
requirement. ❑
14. For a commerciat industrial or communitv facilities praiect,
Application No.
Revised July 22, 2010 3
indicate square footage of non-
FORT WORTN
.��
Application No.
15. How much wilt be �oar Capital Investment��* on the pro,ject? Please use the following table to provide
the details and amount of your Capital Investment (Attached additional sheets if necessary).
Tabte 4
Itemized
16. For a commercial, industrial, communitv faciiitv or muced-use uroiect, how many employees will the
pro,iect �enerate?
1'7. For a mixed-use proiect, please indicate the percentage of all uses in the project in the following table.
Table 5
Type
2esidentiat
Office
Entertainment
Retail sales
Service
Total
Cabinet
Square Footage
III. INCENTIVI:S - What incentives are you applying for?
Municipal Prouertv Tax Abatements
Must rovide Final Plat Cabinet and Slide for Tax Abatement
5 years �re than 5 years
` esidential owner occupied �esidential Renta} Property
�
a
�
❑
■
�
�
Percentage
.►��•`Ca
QApartments (5 plus units) ❑ Commercial
All building permit related fees (including Plans Review and tnspections)
Plat application fee (inciuding concept plan, pretiminary plat, final ptat, short form replat)
Zoning application fee `� Board of Adjustment application fee
�
Demotition fee ❑ Structure moving fee
Community Facilities Agreement (CFA) application fee
Street and utiiity easement vacation application fee
Impact Fee Waivers - The maximum wateNwastewater impact fee waiver amount for a commerciaf, industrial, mixed-
use, or community facility development project is equivalent to the water/wastewater impact fee of two 6-inch meters
(� Water
Release of Citv Liens
❑ Weed iiens
Revised July 22, 2010
of Uses in a Mixed-Use
�
(Meter Size � �ti'��� (No. of ineters } �
� Paving liens ❑ Board up/open structure liens
������ ���+��+��� �' �:�- ���.`��
�,���� �`�� �=�.� �6a���� 4 �i��. ��4s'���a� ��
� �
�s^�.�z,�xft� -�f-�s.gd� �'��� a,�. ��'.•a" �,,�,��-9'"�"�s >
� Transportation
€����1?�����
❑ Demo[ition liens
***Capital Inveshnent includes only real property improvements such as new facitities and structures, site impravements, facility
expansion, and facility modernization. Capital Investment DOES IYOT inc(ude land acquisition costs and/or any existing
improvements, or personal property (such as machinery, equipment, and/or supplies or inventory).
T!' i'
A}�plication No.
III. ACKNOWLEDGMENTS �
I hereby certify that the information provided is true and accurate to the best of my knowledge. I hereby
acknowledge that I have received a copy of NEZ Basic Incentives, which governs the granting of tax abatetnents, fee
waivers and release of City liens, and that any VIOLATiON of the terms of the NEZ Basic lncentives or
MISREPRESENTATION shall constitutE grounds for rejection of an application or termination of incentives at the
discretion of the City.
[ 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 lacated in the correct zoning district.
I understand that my application will not be processed if it is incomplete. I agree to provide any additianal
infarmation for detennining eIigi6ility as requested by the City.
OR TYPED NAME)
"�'i� 1
No
No
No
No
Please mail or fa� your application to:
City of Fort R'orth Planning and DeveloQraent Department
100q Throck�morton Stree#, Fart Worth, Texas 76102
Tel: (8I'7} 393-2222 Fax: (817} 392-$116
Electronic versi�n of this form is available on our website. For more information on the NEZ Pragram, please visit
our web site at www.fortworthgov.org/planninganddevelopment
Application No. ���_��`���h NEZ?
Appticati Completed Date (Received Date):
Type? F ❑ Multifamiiy ❑ Commercial
Cons ction completion date? ❑ BeFore I�E�
TAD Account No.
Meet afFordability test?
Rehab at or higher than 30%?
T� current on this property?
City liens on this property?
• Weed liens
• Board-up/open structure liens
• Demolition liens
• Pavrng liens
• Order af de lition
Certified? �Yes ❑ No
If not certified, reason
es
Yes
❑ Yes
❑ Yes
❑ Yes
❑ Yes
❑ Y�
Certified by
Referred ta: ❑Economic Development
• Weed liens
• Board-up/open structure liens
• Demolition liens
• Paving tiens
• Order of demolition
(DATE)
❑ Yes
❑ Yes
❑ Yes
❑ Yes
❑ Yes
` ���._____ Date certification issued? ! !%,
❑Housing ❑Development ❑Water �Code ❑TPW
❑ No
❑ No
❑ No
❑ No
No
No
No
No
L�
Eo� Office U e Only
__
_�1'1`� �(� j Council District
Conform with Zoning?
ial ❑ Community facilities
Ownership/Site Control
_�
❑ Yes �]No
❑ Mixed-Us
❑ Yes�No
X7"�"`"` E��Cansistent with the NEZ plan? Yes
❑ No Minimum Capital Investment? Yes
❑ No Meet mixed-use defnition? Yes
� No Tax current on other properties? Yes
� City liens on other properties?
Revised July 22, 2010 5
Exhibit "3"
Single Family Residence
3 Bedrooms
2 Bathrooms
Living Room
Utility Room
Approximately 1300 square feet
Project Description
w� F���r ��rox°rti ;
;� ,�
CGUNCIL. AGTION; . Approvect As Amend+�d; on 9t17i2t�13 - Nev� att�chmen� ptovide�,=: �
� � ��
CONTINUED FROM A PREVIOUS WEEK
DATE: 7/23/2013 REFERENCE C-26364 LOG NAME: 17NEZ2812TOWNSEND
NO..
CODE: C
TYPE:
NON- PUBLIC NO
CONSENT HEARING:
SUBJECT: Authorize Execution of a Five-Year Tax Abatement Agreement with Modern Ground L�C,
far Construction of a Single-Family Dwelling at 2812 Townsend Drive in the
Berry/University 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 Modern Ground LLC, for construction of a single-family dwelling at 2812 Townsend
Drive in the Berry/University Neighborhood Empowerment Zone, in accordance with the
Neighborhood Empowerment Zone Tax Abatement Policy and Basic Incentives.
DISCUSSION:
Modern Ground LLC (Property Owner), is the owner of the property described as Block 19, Lot 4,
Frisco Heights Addition, an Addition to the City of Fort Worth, Tarrant County, Texas, according to the
plat recorded in Volume 6041, Page 382, of the Plat Records of Tarrant County, Texas, at 2812
Townsend Drive, Fort Worth, Texas. The property is located within the Berry/University
Neighborhood Empowerment Zone (NEZ).
The Property Owner plans to invest an estimated amount of $150,000.00 to construct an
approximately 1,700 square foot single family residence (Project). The Project will be sold as a
primary residence.
The Housing and Economic Development Department reviewed the application and certified that the
property owner and Project met the eligibility criteria to receive a NEZ Municipal Property Tax
Abatement. The NEZ Basic Incentives includes 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.
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 2014 at the estimated
pre-improvement value as defined by the Tarrant Appraisal District (TAD) for the property as follows:
Pre-Improvement TAD Value of Improvements $ 0.00
Pre-Improvement Estimated Value of Land $37,000.00
Total Pre-Improvement Estimated Value $37,000.00
The municipal property tax on the improved value of the Project after construction is estimated in the
amount of $1,282.50 per year for a total amount of $6,412.50 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 homeowner as their primary residence. All other assignments must
be approved by the City Council.
This property is located in COUNCIL DISTRICT 9.
Page 1 of 2
k
k
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
Submitted for Citv Manager's Office bv:
Originatinq Department Head:
Additional Information Contact:
ATTACHMENTS
2812 Townsend Drive Map.pdf
2812 Townsend Elevation.pdf
FROM FundlAccountlCenters
Fernando Costa (6122)
Cynthia Garcia (8187)
Robert Sturns (8003)
Sarah Odle (7316)
Page 2 of 2