HomeMy WebLinkAboutContract 44419 (2)!
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TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A
NEIGHBORHOOD EMPOWERMENT ZONE
1913 West Berry Street
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 Larry K. Durrett, President of Durrett
Management, Inc., General Partner for Piney Woods Restaurants, LP, a Delaware Limited
Partnership, ("Owner") of property located at 1913 West Berry Street, Ept of Lot 1 and all of Lots
2-5, Block 2, Byers & McCart Addition, an Addition to the City of Fort Worth, Tarrant County,
Texas, according to the Plat recarded in Volume 310, Page 27, Plat Recards, 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 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 February 5, 2013 (Resolution No. 4180). The February 5, 2013 NEZ Incentives are
attached hereto as E�ibit "1" hereby made a part of the Agreement for all purposes.
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").
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E. On January 6, 2004, the Fort Worth City Council adopted Ordinance No. 15815
(the ��Ordinance") establishing "Neighborhood Empowerment Reinvestment Zone No.13" City of
Fort Worth, Texas (the "Zone") and adopted Resolution No. 3030 establishing "Designation of
Berry/LTniversity Area as a Neighborhood Empowerment Zone" (the "NEZ"). On February 3,
2009, the City Council adopted Ordinance No. 18465 (the "Ordinance") re-establishing
"I�Teighborhood Empowerment Reinvestment Zone No. 13 City of Fort Worth, Texas (the
"Zone").
F. Owner owns certain real property located entirely within the Zone and that is more
particularly described in E�ibit "2", attached hereto and hereby made a part of this Agreement for
all purposes (the ��Premises").
G. Owner or its assigns plan to construct a Taco Bell restaurant with second story
office/training space, more particularly described in Section 1.l of this Agreement, on the Premises
(the "Project").
H. On January 31, 2013 Owner submitted an application for tax abatement to the City
concerning the Premises (the "Application"), attached hereto as E�ibit "3" and hereby made a
part of this Agreement for all purposes.
I. The contemplated use of the Premises, the Required Improvements, as defined in
Section 1.1, and the terms of this Agreement are consistent with encouraging development of the
Zone in accordance with the purposes for its creation and are in compliance with the NEZ
Incentives, the Ordinance and other applicable laws, ordinances, rules and regulations.
J. The terms of this Agreement, and the Premises and Required Improvements, satisfy
the eligibility criteria of the NEZ Incentives.
K. Written notice that the City intends to enter into this Agreement, 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.
l.l. Real Propertv Improvements.
Owner shall construct, or cause to be constructed, on and within the Premises
certain improvements consisting of a Taco Bell restaurant; and having a construction cost
upon completion of $794,000.00 but such minimum construction costs shall be reduced by
any construction cost saving (collectively, the ��Required Improvements"). The kind and
type of remodel are more particularly described in Exhibit "4". Tarrant Appraisal District
must appraise the property (improvements and land) within 10% of $794,000.00. Owner
shall provide a copy of the final construction invoices to City once the construction is
complete; the construction invoices shall be a part of this Agreement and shall be labeled
E�ibit "5". 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 E�ibit "4".
1.2. Completion Date of Repuired Improvements.
Owner covenants to complete construction of all of the Required Improvements by
March 5, 2015 (the "Completion Deadline"). The Required Improvements shall be deemed
complete upon the issuance of a final certificate of occupancy for the Required
Improvements by the Planning and Development Deparhnent. Provided however, if the
Owner fails to complete construction of the Required Improvements by the Completion
Deadline or fails to expend at least Seven Hundred Ninety Four Thousand Dollars
($794,000.00) in Construction Costs for the Required Improvements by the Completion
Deadline as provided in Section l.l of this agreement; the City shall have the right to
terminate this Agreement by providing written notice to the Owner without further
obligation to the Owner hereafter.
1.3. Use of Premises.
Owner covenants that the Required Improvements shall be constructed and the
Premises shall be continuously used as a Taco Bell restaurant with second story office
space and in accordance with the description of the Project set forth in the Exhibit "4". 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 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 l, 2013, after the demolition of the existing building and this
amount is $0.00 the year in which this Agreement was entered into:
One Hundred percent (100%) of the increase in value from the
construction of the Required Improvements.
If the square footage requirement and the appraised value of the Required
Improvements are less than as provided in Section l.l 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.
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 l, 2013, after demolition including the Required
Improvements, up to a maximum of $1,191,000.00. 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 $1,200,000.00, 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 $1,191,000.00.
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 (Sth) anniversary of
the Beginning Date.
2.6. Abatement Application Fee.
The City acknowledges 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 or refunded to any party for any reason.
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 Term and for
five (5) years after termination ("Compliance Auditing Term"), at any time during
normal office hours throughout the Term and the year following the 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. 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 Term 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 April 1 following the end of every year during the Compliance
Auditing Term and if requested by the City, Owner shall provide information and
documentation for the previous year that addresses Owner's compliance with each of 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 compiiance with the terms and conditions of
this Agreement during the previous year of the Compliance Auditing Term.
4. EVENTS OF DEFAULT.
4.1. De�ned.
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 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 one hundred twenty (120)
calendar days from the original date of receipt of the written notice, or (ii) if Owner
reasonably believes that Owner will require more than one hundred twenty (120) 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 Pavment of Lipuidated Damages.
If an Event of Default, which is defined in Section 4.1, has not been cured within
the time frame specifically allowed under Section 4.2, the City shall have the right to
terminate this Agreement immediately. Owner acknowledges and agrees that an uncured
Event of Default will (i) harm the City's economic development and redevelopment efforts
on the Premises and in the vicinity of the Premises; (ii) require unplanned and expensive
additional administrative oversight and involvement by the City; and (iii) otherwise harm
the City, and Owner agrees that the amounts of actual damages 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 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
a
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 further rights or obligations hereunder.
4.5. Sexually oriented Business & Liquor Stores or Package 5tores.
a. Owner understands and agrees the City has the right to terminate 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, controiled 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 ineeting the terms 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.
6.
7.
NOTICES.
All written notices called for or required by this Agreement shall be addressed
the following, or such other party or address as either party designates in writing,
certified mail, postage prepaid, or by hand delivery:
City:
City of Fort Worth
Attn: City Manager
1000 Throckmorton Street
Fort Worth, TX 76102
Owner:
Larry K. Durrett
Durrett Management, Inc.
101 East Cherokee
Jacksonville, Texas 75766
and
Housing & Economic Development Department
Attn: Jay Chapa, Director
1000 Throckmorton Street
Fort Worth, TX 76102
MISCELLANEOUS.
7.1. Bonds.
to
by
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 March 5, 2013, the City is unaware of any
conflicts between this Agreement and the City's zoning ordinance or other ordinances or
regulations.
7.4. Future Application.
a
A portion or all of the Premises andlor Required Improvements may be eligible for
complete or partial exemption from ad valarem 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-26136 on March 5, 2013, which, among other things,
authorized the City Manager to execute this Agreement on behalf of the City.
7.6. Estopnel 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, 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.
7.10. 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. Entirety of A�reement.
This Agreement, including any exhibits attached hereto and any documents
incorporated herein by reference, contains the entire understanding and agreement
between the City anci 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.
(THE REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANI�
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EXECUTED this�/��:�) day of , 2013, by the City of Fort Worth,
Texas. �
EXECUTED this � day of ��p�� � , 2013, by Larry K. Durrett.
CITY OF FORT WORTH:
By: - ��
Fernando Costa
Assistant City Manager
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By:
APPROVED AS TO FORM AND LEGALITY:
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Melinda Ramos
Assistant City Attorney
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CITY SECRETAR'�
By: ti�-_l� ( ��-.__)n
Larry K. Durrett, President
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Durrett Management, Inc., General Partner
For Piney Woods Restaurants, LP a
Delaware Limited Partnership
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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
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Notary Public in and
the State of T
UNDER MY HAND AND SEAL
2013.
OF OFFICE this { �
�'�". EVONIA DANIFLS
` �'�Y COM�9ISSION EXPIRES
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;; �;:°� ,luly 10, 2013
day of
Notary's Printed Name
. � .
COUNTY OF TARRANT
§
§
BEFORE ME, the undersigned authority, on this day personally appeared Larry K. Durrett,
President of Durrett Management, Inc., General Partner for Piney Woods Restaurants, LP, a
Delaware Limited Partnership, 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, and in the capacity therein stated for Durrett Management, Inc.,
General Partner for Piney Woods Restaurants, LP, a Delaware Limited Partnership.
�G�I.,V/EN
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UNDER MY HAND AND SEAL OF OFFICE
►�
, 2013.
�
this � day of
MEREDITH A. MCDONALD
Notary Pubiic, State of Texas
My Commission Expires
August O8, 2015
Notary's Printed Name
Notary Public in and for
The State of Texas
Exhibit 1:
Exhibit 2:
Exhibit 3:
Exhibit 4:
NEZ Incentives
Property Description
Application: (NEZ) Incentives and Tax Abatement
Project description including kind, number, and location of the proposed
improvements.
Exhibit 5: Final Construction Invoices
Exhibit 1
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) TAX ABATEMENT POLICY AND BASIC
INCENTIVES
I. GENERAL PURPOSE AND OBJECTIVES
Chapter 378 of the Texas Local Government Code allows a municipality to create a
Neighborhood Empowerment Zone (NEZ) when a"...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."
The City, by adopting the following NEZ Tax Abatement Policy and Basic Incentives, will
promote affordable housing and economic development in Neighborhood Empowerment Zones.
NEZ incentives will not be granted after the NEZ expires as defined in the resolution designating
the NEZ. For each NEZ, the City Council may approve additional terms and incentives as
permitted by Chapter 378 of the Texas Local Government Code or by City Council resolution.
However, any tax abatement awarded before the expiration of a NEZ shall carry its full term
according to its tax abatement agreement approved by the City Council.
As mandated by state law, the property tax abatement under this policy applies to the owners of
real property. Nothing in the policy shall be construed as an obligation by the City of Fort Worth
to approve any tax abatement application.
II. DEFINITIONS
"Abatement or Tax Abatement" means a full or partial exemption from City of Fort Worth ad
valorem taxes on eligible real and personal property located in a NEZ for a specified period on
the difference between (i) the amount of increase in the appraised value (as reflected on the
certified tax roll of the appropriate county appraisal district) resulting from improvements begun
after the execution of a written Tax Abatement Agreement and (ii) the appraised value of such
real estate prior to execution of a written Tax Abatement Agreement (as reflected on the most
recent certified tax roll of the appropriate county appraisal district for the year prior to the date
on which the Tax Abatement Agreement was executed).
"Atfordable Units" means affordable to persons earning /ess than 80% Area Median Family
Income (AMFI) as defined by U.S. Department of Housing and Urban Development (HUD) for
single family housing and under 60% AMFI as defined by HUD for rental and multi-family.
"Base Value" is the value of the Real Property Improvements, excluding land, as determined by
the Tarrant County Appraisal District, during the year rehabilitation occurs.
"Building Standards Commission" is the commission created under Sec. 7-77, Article IV.
Minimum Building Standards Code of the Fort Worth City Code.
Adopted — February 5, 2013 1
"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 and inventory).
"City of Fort Worth Tax Abatement Policy StatemenY' means the policy adopted by City Council.
"Commercial/Industrial Development Project" is a development project which proposes to
construct or rehabilitate commercial/industrial facilities on property that is (or meets the
requirements to be) zoned commercial, industrial or mixed use as defined by the City of Fort
Worth Zoning Ordinance.
"Community Facility Development Project" is a development project which proposes to construct
or rehabilitate community facilities on property that allows such use as defined by the City of
Fort Worth Zoning Ordinance.
"Eligible Rehabilitation" includes only physical improvements to Real Property Improvements.
Eligible Rehabilitation does NOT include personal property (such as furniture, appliances,
equipment, and/or supplies).
"Gross Floor Area" is measured by taking the outside dimensions of the building at each floor
level, except that portion of the basement used only for utilities or storage, and any areas within
the building used for off-street parking.
"Minimum Building Standards Code" is Article IV of the Fort Worth City Code adopted pursuant
to Texas Local Government Code, Chapters 54 and 214.
"Minority Business Enterprise (MBE)" and "Women Busrness Enterprise (WBE)" is a minority or
woman owned business that has received certification as either a certified MBE or certified
WBE by either the North Texas Regional Certification Agency (NTRCA) or the Texas
Department of Transportation (TxDot), Highway Division.
"Mixed-Use Development Project" is a development project which proposes to construct or
rehabilitate mixed-use facilities in which residential uses constitute 20 percent or more of the
total gross floor area, and office, eating and entertainment, and/or retail sales and service uses
constitute 10 percent or more of the total gross floor area and is on property that is (or meets
the requirements to be) zoned mixed-use as described by the City of Fort Worth Zoning
Ordinance.
"Multi-family Development Project" is a development project which proposes to construct or
rehabilitate 3 or more multi-family residential living units on a property that is (or meets the
requirements to be) zoned multi-family or mixed use as defined by the City of Fort Worth Zoning
Ordinance.
"New Construction" is a newly constructed habitable structure improvement requiring a
permanent foundation. This excludes accessory structures such as sheds and incidental out
buildings.
"Primary Residence" is the residence that has a Homestead Exemption on file with Tarrant
County Appraisal District.
Adopted — February 5, 2013 2
"Project" means a "Residential ProjecY; "Commercial/Industrial Development
Project'; "Community Facility Development Project'; "Mixed-Use Development Project', or a
"Multi-family Development Project."
"Rea/ Property
Building Code.
MUNICIPA� PROPERTY TAX ABATEMENTS
"Reinvestment Zone" is an area designated as such by the City of Fort Worth in accordance
with the Property Redevelopment and Tax Abatement Act codified in Chapter 312 of the Texas
Tax Code, or an area designated as an enterprise zone pursuant to the Texas Enterprise Zone
Act, codified in Chapter 2303 of the Texas Government Code.
"Residential ProjecY' — means less than 3 residential units.
III.
Q
RESIDENTIAL PROPERTIES LOCATED IN A NEZ- FULL ABATEMENT FOR 5
YEARS
1. For residential property purchased before NEZ designation, a homeowner shall be
eligible to apply for a tax abatement by meeting the following:
Improvements" — means a habitable structure as defined by the Fort Worfh
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c.
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Property is owner-occupied and the primary residence of the homeowner prior to
the final NEZ designation. Homeowner shall provide proof of ownership by a
warranty deed, affidavit of heirship, or a probated will, and shall show proof of
primary residence by homestead exemption; and
Property is rehabilitated after NEZ designation and City Council approval of the
tax abatement;
Homeowner must perform Eligible Rehabilitation on the property after NEZ
designation equal to or in excess of 30% of the Base Value of the Real Property
Improvements; and
Property is not in a tax-delinquent status when the abatement application is
submitted.
2. For residential property purchased after NEZ designation, a homeowner shall be
eligible to apply for a tax abatement by meeting the following:
a. Real Property Improvements are constructed or rehabilitated after NEZ
designation and City Council approval of the tax abatement;
b. Property is owner-occupied and is the primary residence of the homeowner.
Homeowner shall provide proof of ownership by a warranty deed, affidavit of
heirship, or a probated will, and shall show proof of primary residence by
homestead exemption;
c. For rehabilitated Real Property Improvements, Eligible Rehabilitation costs on
the Real Property Improvements shall be equal to or in excess of 30% of the
Base Value of the Real Property Improvements. The seller or owner shall provide
the City information to support rehabilitation costs;
d. Property is not in a tax-delinquent status when the abatement application is
submitted; and
Adopted — February 5, 2013 3
e. Property is in conformance with the City of Fort Worth Zoning Ordinance
however, a property use that is legal non-conforming shall not be eligible to
receive a tax abatement.
3. For investor owned single family property, an investor shall be eligible to apply for a
tax abatement by meeting the following:
a. Real Property Improvements are constructed or rehabilitated after NEZ
designation and City Council approval of the tax abatement;
b. For rehabilitated Real Property Improvements, Eligible Rehabilitation costs on
the Real Property Improvements shall be equal to or in excess of 30% of the
Base Value of theReal Property Improvements;
c. Property is not in a tax-delinquent status when the abatement application is
submitted; and
d. Property is in conformance with the City of Fort Worth Zoning Ordinance.
B. MULTI-FAMILY DEVELOPMENT PROJECTS LOCATED IN A NEZ
1. 100% Abatement for 5 vears.
If an applicant applies for a tax abatement aqreement with a term of five vears or
less, this section shall applv.
Abatements for multi-family development projects for up to 5 years are subject to
City Council approval. The applicant may apply with the Housing and Economic
Development Department for such abatement.
In order to be eligible for a property tax abatement upon completion, a newly
constructed or rehabilitated multi-family development project in a NEZ must satisfy
the following:
At least twenty percent (20%) of the total units constructed or
rehabilitated shall be affordable (as defined by the U. S. Department of Housing
and Urban Development) and set aside to persons with incomes at or below
eighty percent (80%) of area median income based on family size. City Council
may waive or reduce the 20% affordability requirement on a case-by-case basis.
In addition at least 5% of the total units constructed or rehabilitated shall be
compliant with the Americans with Disability Act (ADA) in accordance with
Section 504 of the Rehabilitation Act, and must be fully accessible and 2% of the
total units constructed must be fully accessible to persons with sensory
impairments; and
(a) For a multi-family development project constructed after NEZ designation, the
project must provide at least five (5) residential living units OR have a
minimum Capital Investment of $200,000; or
(b) For a rehabilitation project, the Real Property Improvements must be
rehabilitated after NEZ designation. Eligible Rehabilitation costs on the Real
Property Improvements shall be at least 30% of the Base Value of the Real
Property Improvements. Such Eligible Rehabilitation costs must come from
the rehabilitation of at least five (5) residential living units or a minimum
Capital Investment of $200,000.
Adopted — February 5, 2013 4
2. 1%-100% Abatement of Citv Ad Valorem taxes up to 10 vears
If an applicant applies for a tax abatement aqreement with a term of more than five
vears, this section shall apqlv.
Abatements for multi-family development projects for up to 10 years are subject to
City Council approval. The applicant may apply with the Housing and Economic
Development Department for such abatement.
Years 1 through 5 of the Tax Abatement Aareement
Multi-family projects shall be eligible for 100% abatement of City ad valorem taxes
for years one through five of the Tax Abatement Agreement upon the satisfaction of
the following:
At least twenty percent (20%) of the total units constructed or rehabilitated shall
be affordable (as defined by the U. S. Department of Housing and Urban
Development) and set aside to persons with incomes at or below eighty percent
(80%) of area median income based on family size. City Council may waive or
reduce the 20% affordability requirement on a case-by-case basis. In addition at
least 5% of the total units constructed or rehabilitated shall be compliant with the
Americans with Disability Act (ADA) in accordance with Section 504 of the
Rehabilitation Act, and must be fully accessible and 2°/a of the total units
constructed must be fully accessible to persons with sensory impairments; and
a. For a multi-family development project constructed after NEZ designation, the
project must provide at least five (5) residential living units OR have a
minimum Capital Investment of $200,000; or
b. For a rehabilitation project, the Real Property Improvements must be
rehabilitated after NEZ designation. Eligible Rehabilitation costs on the Real
Property Improvements shall be at least 30% of the Base Value of the Real
Property Improvements. Such Eligible Rehabilitation costs must come from
the rehabilitation of at least five (5) residential living units or a minimum
Capital Investment of $200,000.
Years 6 throuqh 10 of the Tax Abatement Aqreement
Multi-family projects shall be eligible for a 1%-100% abatement of City ad valorem
taxes for years six through ten of the Tax Abatement Agreement upon the
satisfaction of the following:
a. At least twenty percent (20%) of the total units constructed or rehabilitated shall
be affordable (as defined by the U. S. Department of Housing and Urban
Development) and set aside to persons with incomes at or below eighty percent
(80%) of area median income based on family size. In addition at least 5% of the
total units constructed or rehabilitated shall be compliant with the Americans with
Disability Act (ADA) in accordance with Section 504 of the Rehabilitation Act, and
must be fully accessible and 2% of the total units constructed must be fully
accessible to persons with sensory impairments. City Council may waive or
reduce the 20% affordability requirement on a case-by-case basis; and
Adopted — February 5, 2013 5
1. For a muiti-family development project constructed after NEZ designation, the
project must provide at least five (5) residential living units OR have a
minimum Capital Investment of $200,000; or
2. For a rehabilitation project, the Real Property Improvements must be
rehabilitated after NEZ designation. Eligible Rehabilitation costs on the Real
Property Improvements shall be at least 30% of the Base Value of the Real
Property Improvements. Such Eligible Rehabilitation costs must come from
the rehabilitation of at least five (5) residential living units or a minimum
Capital Investment of $200,000.
b. Any other terms as City Council of the City of Fort Worth deems appropriate,
including, but not limited to:
1. utilization of Fort Worth companies for an agreed upon percentage of the total
costs for construction contracts;
2. utilization of certified minority and women owned business enterprises for an
agreed upon percentage of the total costs for construction contracts;
3. property inspection;
4. commit to hire an agreed upon percentage of Fort Worth residents
5. commit to hire an agreed upon percentage of Central City residents
6. landscaping;
7. tenant selection plans; and
8. management plans.
C. COMMERCIAL, INDUSTRIAL AND COMMUNITY FACILITIES DEVELOPMENT
PROJECTS LOCATED IN A NEZ
1. 100% Abatement of City Ad Valorem taxes for 5 years
If an applicant applies for a tax abatement aqreement with a term of five vears or
less, this section shall applv.
Abatements for Commercial, Industrial and Community Facilities Development
Projects for up to 5 years are subject to City Council approval. The applicant may
apply with the Housing and Economic Development Department for such abatement.
In order to be eligible for a property tax abatement, a newly constructed or
rehabilitated commercial/industrial and community facilities development project in a
NEZ must satisfy the following:
a. A commercial, industrial or a community facilities development project
constructed after NEZ designation must have a minimum Capital Investment of
$75,000; or
b. For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible
Rehabilitation costs on the Real Property Improvements shall be at least 30% of
the Base Value of the Real Property Improvements, or $75,000, whichever is
g reater.
2. 1%-100% Abatement of Citv Ad Valorem taxes up to 10 vears
If an applicant applies for a tax abatement aqreement with a term of more than five
vears, this section shall applv.
Adopted — February 5, 2013 6
Abatements agreements for a Commercial, Industrial and Community Facilities
Development projects for up to 10 years are subject to City Council approval. The
applicant may apply with the Housing and Economic Development Department for
such abatement.
Years 1 throuqh 5 of the Tax Abatement Aqreement
Commercial, Industrial and Community Facilities Development projects shall be
eligible for 100% abatement of City ad valorem taxes for the first five years of the
Tax Abatement Agreement upon the satisfaction of the following:
a. A commercial, industrial or a community facilities development project
constructed after NEZ designation must have a minimum Capital Investment of
$75,000; or
b. For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible
Rehabilitation costs on the Real Property Improvements shall be at least 30% of
the Base Value of the Real Property Improvements, or $75,000, whichever is
greater.
Years 6 throuqh 10 of the Tax Abatement Aqreement
Commercial, Industrial and Community Facilities Development projects shall be
eligible for 1%-100% abatement of City ad valorem taxes for years six through ten of
the Tax Abatement Agreement upon the satisfaction of the following:
a. A commercial, industrial or a community facilities development project
constructed after NEZ designation must have a minimum Capital
Investment of $75,000 and must meet the requirements of subsection (c)
below ; or
b. For a rehabilitation project, it must be rehabilitated after NEZ designation.
Eligible Rehabilitation costs on the Real Property Improvements shall be
at least 30% of the Base Value of the Real Property Improvements, or
$75,000, whichever is greater and meet the requirements of subsection
(c) below.
c. Any other terms as City Council of the City of Fort Worth deems
appropriate, including, but not limited to:
1. utilization of Fort Worth companies for an agreed upon percentage of
the total costs for construction contracts;
2. utilization of certified minority and women owned business enterprises
for an agreed upon percentage of the total costs for construction
contracts;
3. commit to hire an agreed upon percentage of Fort Worth residents;
4. commit to hire an agreed upon percentage of Central City residents;
and
5. landscaping.
Adopted — February 5, 2013 7
D. MIXED-USE DEVELOPMENT PROJECTS LOCATED IN A NEZ
1. 100% Abatement of Citv Ad Valorem taxes for 5 years
If an applicant applies for a tax abatement aqreement with a term of five vears or
less, this section shall applv.
Abatements for Mixed-Use Development Projects for up to 5 years are subject to
City Council approval. The applicant may apply with the Housing and Economic
Development Department for such abatement.
In order to be eligible for a property tax abatement, upon completion, a newly
constructed or rehabilitated mixed-use development project in a NEZ must satisfy the
following:
a. Residential uses in the project constitute 20 percent or more of the total Gross
Floor Area of the project. At least twenty percent (20%) of the total units
constructed or rehabilitated shall be affordable (as defined by the U. S.
Department of Housing and Urban Development) and set aside to persons with
incomes at or below eighty percent (80%) of area median income based on
family size. In addition at least 5% of the total units constructed or rehabilitated
shall be compliant with the Americans with Disability Act (ADA) in accordance
with Section 504 of the Rehabilitation Act, and must be fully accessible and 2%
of the total units constructed must be fully accessible to persons with sensory
impairments; and
b. Office, eating and entertainment, and/or retail sales and service uses in the
project constitute 10 percent or more of the total Gross Floor Area of the project;
and
(1) A mixed-use development project constructed after NEZ designation must
have a minimum Capital Investment of $200,000; or
(2) For a rehabilitation project, it must be rehabilitated after NEZ designation.
Eligible Rehabilitation costs on the Real Property Improvements shall be at
least 30% of the Base Value of the Real Property Improvements, or
$200,000, whichever is greater.
2. 1%-100% Abatement of Citv Ad Valorem taxes up to 10 vears
If an applicant applies for a tax abatement agreement with a term of more than five
vears, this section shall apply.
Abatements agreements for a Mixed Use Development projects for up to 10 years
are subject to City Council approval. The applicant may apply with the Housing and
Economic Development Department for such abatement.
Years 1 throuqh 5 of the Tax Abatement Aqreement
Mixed Use Development projects shall be eligible for 100% abatement of City ad
valorem taxes for the first five years of the Tax Abatement Agreement upon the
satisfaction of the following:
Adopted — February 5, 2013 8
a. Residential uses in the project constitute 20 percent or more of the total Gross
Floor Area of the project. At least twenty percent (20%) of the total units
constructed or rehabilitated shall be affordable (as defined by the U. S.
Department of Housing and Urban Development) and set aside to persons with
incomes at or below eighty percent (80%) of area median income based on
family size. In addition at least 5% of the total units constructed or rehabilitated
shall be compliant with the Americans with Disability Act (ADA) in accordance
with Section 504 of the Rehabilitation Act, and must be fully accessible and 2%
of the total units constructed must be fully accessible to persons with sensory
impairments; and
b. Office, eating and entertainment, and/or retail sales and service uses in the
project constitute 10 percent or more of the total Gross Floor Area of the project;
and
c. A new mixed-use development project constructed after NEZ designation must
have a minimum Capital Investment of $200,000; or for a rehabilitation project, it
must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the
Real Property Improvements shall be at least 30% of the Base Value of the Real
Property Improvements, or $200,000, whichever is greater.
Years 6 throuah 10 of the Tax Abatement Aqreement
Mixed Use Development projects shall be eligible for 1-100% abatement of City ad
valorem taxes for years six through ten of the Tax Abatement Agreement upon the
satisfaction of the following:
a. Residential uses in the project constitute 20 percent or more of the total Gross
Floor Area of the project; At least twenty percent (20%) of the total units
constructed or rehabilitated shall be affordable (as defined by the U. S.
Department of Housing and Urban Development) and set aside to persons with
incomes at or below eighty percent (80%) of area median income based on
family size. In addition at least 5% of the total units constructed or rehabilitated
shall be compliant with the Americans with Disability Act (ADA) in accordance
with Section 504 of the Rehabilitation Act, and must be fully accessible and 2%
of the total units constructed must be fully accessible to persons with sensory
impairments; and
b. Office, eating and entertainment, and/or retail sales and service uses in the
project constitute 10 percent or more of the total Gross Floor Area of the project;
c. A new mixed-use development project constructed after NEZ designation must
have a minimum Capital Investment of $200,000; or for a rehabilitation project, it
must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the
Real Property Improvements shall be at least 30% of the Base Value of the Real
Property Improvements, or $200,000, whichever is greater; and
d. Any other terms as City Council of the City of Fort Worth deems appropriate,
including, but not limited to:
Adopted — February 5, 2013 9
1. utilization of Fort Worth companies for an agreed upon percentage of the
total costs for construction contracts;
2. utilization of certified minority and women owned business enterprises for
an agreed upon percentage of the total costs for construction contracts;
3. property inspection;
4. commit to hire an agreed upon percentage of Fort Worth residents
5. commit to hire an agreed upon percentage of Central City residents
6. landscaping;
7. tenant selection plans; and
8. management plans.
E. ABATEMENT GUIDELINES
1. If a NEZ is located in a Tax Increment Financing District, City Council will determine
on a case-by-case basis if the tax abatement incentives in Section III will be offered
to eligible Projects. Eligible Projects must meet all eligibility requirements specified
in Section III.
2. A tax abatement shall not be granted for any development project in which a
building permit application, excluding grading and/or demolition, has been filed with
the City's Planning and Development Department. In addition, the City will not abate
taxes on the value of real or personal property for any period of time prior to the year
of execution of a Tax Abatement Agreement with the City.
3. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in
order to be considered "eligible" to apply for a tax abatement under this Policy, the
Woodhaven Community Development Corporation and the Woodhaven
Neighborhood Association must have submitted a letter of support for the Project to
the City of Fort Worth
4. Tax Abatements for a new construction project will automatically terminate two
years after Council approval of the tax abatement if a building permit has not been
pulled and a foundation has not been poured.
5. Tax Abatements for a rehabilitation project will automatically terminate two years
after Council approval of the tax abatement if the project is not complete.
6. In order to be eligible to apply for a tax abatement, the property owner/developer
must:
a. Not be delinquent in paying property taxes for any property owned by the
owner/developer, except that an owner/developer may enter into a tax
abatement agreement with the city of Fort Worth for a specific Project if:
1. the Project meets NEZ tax abatement criteria; and
2. the applicant is not responsible for the tax delinquency for the Property; and
3. the applicant enters into an agreement to pay off the taxes under the
guidelines permitted under state law; and
4. the tax abatement shall provide that the agreement shall take effect after the
delinquent taxes are paid in full
Adopted — February 5, 2013 10
b. Not have any City of Fort Worth liens filed against any property owned by the
applicant property owner/developer. "Liens" include, but are not limited to, weed
liens, demolition liens, board-up/open structure liens and paving liens.
7. Projects to be constructed on property to be purchased under a contract for deed
are not eligible for tax abatements.
8. Once a NEZ property owner of a residential property (including multi-family) in the
NEZ satisfies the criteria set forth in Sections III.A, E.1. and E.2. and applies for an
abatement, a property owner may enter into a tax abatement agreement with the City
of Fort Worth. The tax abatement agreement shall automatically terminate if the
property subject to the tax abatement agreement is in violation of the City of Fort
Worth's Minimum Building Standards Code and the owner is convicted of such
violation.
9. A tax abatement granted under the criteria set forth in Section III. can only be granted
once for a property in a NEZ for a maximum term of as specified in the agreement. If
a property on which tax is being abated is sold, the City may assign the tax
abatement agreement for the remaining term once the new owner submits an
application so long as the new owner complies with all of the terms of the tax
abatement agreement.8 A property owner/developer of a multifamily development,
commercial, industrial, community facilities and mixed-use development project in
the NEZ who desires a tax abatement under Sections III.B, C or D must:
a. Satisfy the criteria set forth in Sections III.B, C or D, as applicable, and Sections
I I I. E.1 E.2; and E3. and
b. File an application with the Housing and Economic Development Department, as
applicable; and
c. The property owner must enter into a tax abatement agreement with the City of
Fort Worth. In addition to the other terms of agreement, the tax abatement
agreement shall provide that the agreement shall automatically terminate if the
owner receives one conviction of a violation of the City of Fort Worth's Minimum
Building Standards Code regarding the property subject to the abatement
agreement during the term of the tax abatement agreement; and
d. If a property in the NEZ on which tax is being abated is sold, the new owner may
enter into a tax abatement agreement on the property for the remaining term.
10. If the terms of the tax abatement agreement are not met, the City Council has the
right to cancel or amend the abatement agreement. In the event of cancellation, the
recapture of abated taxes shall be limited to the year(s) in which the default occurred
or continued.
11. The terms of the agreement shall include the City of Fort Worth's right to: (1) review
and verify the applicant's financial statements in each year during the life of the
agreement prior to granting a tax abatement in any given year, (2) conduct an on site
inspection of the project in each year during the life of the abatement to verify
compliance with the terms of the tax abatement agreement, (3) terminate the
agreement if the Project contains or will contain a sexually oriented business (4
terminate the agreement, as determined in City's sole discretion, if the Project
contains or will contain a liquor store or package store.
Adopted — February 5, 2013 11
12. Upon completion of construction of the facilities, the City shall no less than annually
evaluate each project receiving abatement to insure compliance with the terms of the
agreement. Any incidents of non-compliance will be reported to the City Council.
On or before February 1st of every year during the life of the agreement, any
individual or entity receiving a tax abatement from the City of Fort Worth shall
provide information and documentation which details the property owner's
compliance with the terms of the respective agreement and shall certify that the
owner is in compliance with each applicable term of the agreement. Failure to report
this information and to provide the required certification by the above deadline shall
result in cancellation of agreement and any taxes abated in the prior year being due
and payable.
F.
IV.
A.
13. If a property in the NEZ on which tax is being abated is sold, the new owner may
enter into a tax abatement agrPement on the property for the remaining term. Any
sale, assignment or lease of the property which is not permitted in the tax abatement
agreement results in automatic cancellation of the agreement and recapture of any
taxes abated after the date on which an unspecified assignment occurred.
APPLICATION FEE
1. An application fee of $25.00 for all basic incentives, excluding tax abatements.
2. The application fee for residential tax abatements governed under Section III.A is
$100.
3. The application fee for multi-family, commercial, industrial, community facilities and
mixed-use development projects governed under Sections III.B., C. and D., is one-
half of one percent (0.5%) of the proposed Project's Capital Investment, with a$200
minimum not to exceed $2,000. The Application Fee shall not be credited or
refunded to any party for any reason.
FEE WAIVERS
ELIGIBLE RECIPIENTS/PROPERTIES
1. City Counci
contain or
waiver.
I shall determine on a case-by-case basis whether a Project that will
contains a liquor store or package store is eligible to apply for a fee
2. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order
to be considered "eligible" to apply for a fee waiver under this Policy, the Woodhaven
Community Development Corporation and the Woodhaven Neighborhood
Association must have submitted a letter of support for the Project to the City of Fort
Worth—however, once the NEZ Plan is submitted for the Woodhaven NEZ, this will
no longer be required.3. Projects to be constructed on property to be purchased
under a contract for deed are not eligible for development fee waivers.
3. In order for a property owner/developer to be eligible to apply for fee waivers for a
Project, the property owner/developer:
Adopted — February 5, 2013 12
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c.
C•7
must submit an application to the City;
must not be delinquent in paying property taxes for any property owned by the
owner/developer or applicant;
must not have any City liens filed against any property owned by the applicant
property owner/developer, including but not limited to, weed liens, demolition
liens, board-up/open structure liens and paving liens; and
of a Project that will contain or contains a liquor store, package store or a sexually
oriented business has received City Council's determination that the Project is
eligible to apply for fee waivers.
A�proval of the application and waiver of the fees shall not be deemed to be
approval of anv aspect of the Proiect. Before construction, the applicant must
ensure that the proiect is located in the correct zoninq district.
DEVELOPMENT FEES
1. Once the Application for NEZ Incentives has been approved and certified by the City, the
following fees for services qerformed by the Citv of Fort Worth for Projects in the NEZ
are waived for new construction projects or rehabilitation projects that expend at least
30% of the Base Value of the Real Property Improvements on Eligible Rehabilitation
costs:
��
b)
c)
d)
e)
f)
9)
h)
i)
J)
k)
I)
m)
All Building Permit related Fees (including Plans Review and Inspections) except as
stated in IV B. 2. below
Plat Application Fee (including Concept Plan, Preliminary Plat, Final Plat, Short Form
Replat)
Board of Adjustment Application Fee
Demolition fee
Structure Moving Fee
Community Facilities Agreement (CFA) Application Fee
Zoning Application Fee
Street and Utility Easement Vacation Application Fee
Ordinance Inspection Fees
Consent/Encroachment Agreement Application Fees
Transportation Impact Fees
Urban Forestry Application Fees
Sign Permit Fees
2. If a permit or application listed in B(1) is expired, the fee to reactivate, renew or reapply
shall not be waived. In addition, penalties and extension fees or re-permitting fees will
not be waived.
3. Neighborhood Empowerment Zone Fees not waived or reduced:
a.) Investigation Fees
b.) Plan Revision Fees
c.) Change of Record Fees
d.) Inspection outside of normal business hours Reinspection Fee
e.) Annual Fire Inspection Fees
Adopted — February 5, 2013 13
4. Other development related fees not specified above will be considered for approval by
City Council on a case-by-case basis.
C. IMPACT FEES
1. Single family and multi-family residential development projects in the NEZ.
Automatic 100% waiver of water and wastewater impact fees will be applied.
2. Commercial, industrial, mixed-use, or community facility development projects in the
N EZ.
a. Automatic 100% waiver of water and wastewater impact fees up to $55,000 or
equivalent to two 6-inch meters for each commercial, industrial, mixed-use or
community facility development project; whichever is less.
b. If the project requests an impact fee waiver exceeding $55,000 or requesting a
waiver for larger and/or more than two 6-inch meter exceeding $55,000, then City
Council approval is required. Applicant may request the additional amount of
impact fee waiver through the Planning and Development Department.
V. RELEASE OF CITY LIENS
A. ELIGIBLE RECIPIENTS/PROPERTIES
1. Project must be located in a NEZ.
2. City Council shall determine on a case-by-case basis whether a Project that will
contain or contains a liquor store or package store is eligible to receive a release of
City liens.
3. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order
to be considered "eligible" to apply for release of city liens under this Policy, the
Woodhaven Community Development Corporation and the Woodhaven
Neighborhood Association must have submitted a letter of support for the Project to
the City of Fort Worth.
4. Projects to be constructed on property to be purchased under a contract for deed are
not eligible for any release of City Liens.
5. In order for a property owner/developer to be eligible to apply for a release of city
liens contained in Section V.B., C., D., and E. for a Project, the property
owner/developer:
a. must submit an application to the City;
b. must not be delinquent in paying property taxes for any property owned by the
owner/developer;
c. must not have been subject to a Building Standards Commission's Order of
Demolition where the property was demolished within the last five (5) years;
d. must not have any City of Fort Worth liens filed against any other property owned
by the applicant property owner/developer. "Liens" includes, but is not limited to,
weed liens, demolition liens, board-up/open structure liens and paving liens; and
Adopted — February 5, 2013 14
e. of a Project that contains or will contain a liquor store, package store or a sexually
oriented business has received City Council's determination the Project is eligible
to receive a release of City liens.
�
C.
I�
E.
6. In order for a Rehabilitation Project to qualify for a release of city liens, the
owner/developer must spend Eligible Rehabilitation costs on the Property of at least
30% of the Base Value of the Property.
7. �iens listed in this Policy shall be released once the Project Improvements have been
made to the property.
8. Any liens filed after the initial certification of the property shall not be released.
WEED LIENS
The following are eligible to apply for release of weed liens:
industrial, mixed-use,
4. Developers constructing new multi-family, commercial, industrial, mixed-use or
community facility development projects.
1. Single unit owners performing rehabilitation on their properties.
2. Builders or developers constructing new homes on vacant lots.
3. Owners performing rehabilitation on multi-family, commercial,
or community facility properties.
DEMOLITION LIENS
Builders or developers developing or rehabilitating a property for a Project are eligible to
apply for release of demolition liens for up to $30,000. Releases of demolition liens in
excess of $30,000 are subject to City Council approval.
BOARD-UP/OPEN STRUCTURE LIENS
The following are eligible to apply for release of board-up/open structure liens:
1. Single unit owners performing rehabilitation on their properties.
2. Builders or developers constructing new single family homes on vacant lots.
3. Owners perForming rehabilitation on multi-family, commercial, industrial, mixed-use,
or community facility properties.
4. Developers constructing multi-family, commercial, industrial, mixed-use, or
community facility projects.
PAVING LIENS
The following are eligible to apply for release of paving liens:
1. Single unit owners perForming rehabilitation on their properties.
2. Builders or developers constructing new homes on vacant lots.
3. Owners performing rehabilitation on multi-family, commercial,
or community facility properties.
industrial, mixed-use,
Adopted — February 5, 2013 15
4. Developers constructing multi-family, commercial, industrial, mixed-use, or
community facility projects.
F. All other City liens will not be waived.
VI. PROCEDURAL STEPS
A. APPLICATION SUBMISSION
1. The applicant for NEZ incentives under Sections III. IV., and V. must complete and
submit a City of Fort Worth "Application for NEZ Incentives" and pay the appropriate
application fee to the Planning and Development Department, as applicable.
2. The applicant for incentives under Sections III.C.2 and D.2 must also complete and
submit a City of Fort Worth "Application for Tax Abatement" and pay the appropriate
application fee to the Housing and Economic Development Department. The
application fee, review, evaluation and approval will be governed by City of Fort
Worth Tax Abatement Policy Statement for Qualifying Development Projects.
3. All NEZ certifications for incentives will expire after five years.
4. NEZ benefits will continue for certified projects (18) eighteen months after a NEZ is
terminated or the NEZ boundary changed.
B. CERTIFICATIONS FOR APPLICATIONS UNDER SECTIONS III. IV, AND V
1. The Planning and Development Department will review the application for accuracy
and completeness. A complete application must include proof that:
1. The Project is located in a NEZ;
2. The Public Notification Process has been completed as stated in section IX;
3. The project is in compliance with the adopted NEZ plan; and
4. The Council Member for the district in which the project is located has approved the
project.
Once the Planning and Development Department determines that the application is
complete, the Planning and Development Department will certify the property
owner/developer's eligibility to receive tax abatements and/or basic incentives based on
the criteria set forth in Section III., IV., and V. of this policy, as applicable. Once an
applicanYs eligibility is certified, the Planning and Development Department will inform
appropriate departments administering the incentives. An orientation meeting with City
departments and the applicant may be scheduled. The departments include:
a. Housing and Economic Development Department: property tax abatement for
residential properties and multi-family development projects, release of City liens.
b. Housing and Economic Development Department: property tax abatement for
commercial, industrial, community facilities or mixed-use development projects.
c. Planning and Development Department: development fee waivers and release of
City liens.
d. Water Department: impact fee waivers.
e. Other appropriate departments, if applicable.
Adopted — February 5, 2013 16
C. APPLICATION REVIEW AND EVALUATION FOR APPLICATIONS
1. Property Tax Abatement for Residential Properties and Multi-family Development
Projects
a. For a completed and certified application for no more than five years of tax
abatement, with Council approval, the City Manager shall execute a tax
abatement agreement with the applicant.
b. For a completed and certified multi-family development project application for
more than five years of tax abatement:
(1) The Housing and Economic Development Department will evaluate a
completed and certified application based on:
(a) The project's increase in the value of the tax base.
(b) Costs to the City (such as infrastructure participation, etc.).
(c) Percent of construction contracts committed to:
(i) Fort Worth based firms, and
(ii) Minority and Women Owned Business Enterprises (M/WBEs).
(d) Other items which the City and the applicant may negotiate.
(3) Consideration by the City Council
The City Council retains sole authority to approve or deny any tax abatement
agreement and is under no obligation to approve any tax abatement
application or tax abatement agreement. The City of Fort Worth is under no
obligation to provide tax abatement in any amount or value to any applicant.
c. Effective Date for Approved Agreements
All tax abatements approved by the City Council will become effective on
January 1 of the year following the year in which a Certificate of Occupancy (CO)
is issued for the qualifying development project (unless otherwise specified in the
tax abatement agreement). Unless otherwise specified in the agreement, taxes
levied during the construction of the project shall be due and payable.
2. Property Tax Abatement for Commercial, Industrial, Community Facilities, and
Mixed-Use Development Projects
a. For a completed and certified application for no more than five years of tax
abatement, with Council approval, the City Manager shall execute a tax
abatement agreement with the applicant.
b. For a completed and certified application for more than five years of tax
abatement:
(1) The Housing and Economic Development Department will evaluate a
completed and certified application based on:
(a) The project's increase in the value of the tax base.
(b) Costs to the City (such as infrastructure participation, etc.).
(c) Percent of construction contracts committed to:
(i) Fort Worth based firms, and
(ii) Minority and Women owned Business Enterprises (M/WBEs).
Adopted — February 5, 2013 17
e
(d) Other items which the City and the applicant may negotiate.
(2) Consideration by the City Council
The City Council retains sole authority to approve or deny any tax abatement
agreement and is under no obligation to approve any tax abatement
application or tax abatement agreement. The City of Fort Worth is under no
obligation to provide tax abatement in any amount or value to any applicant.
c. Effective Date for Approved Agreements
All tax abatements approved by the City Council will become effective on
January 1 of the year following the year in which a Certificate of Occupancy (CO)
is issued for the qualifying development project (unless otherwise specified in the
tax abatement agreement). Unless otherwise specified in the agreement, taxes
levied during the construction of the project shall be due and payable.
3. Development Fee Waivers
a. For certified applications of development fee waivers that do not require Council
approval, the Planning and Development Department will review the certified
applicant's application and grant appropriate incentives.
b. For certified applications of development fee waivers that require Council
approval, City staff will review the certified applicanYs application and make
appropriate recommendations to the City Council.
4. Impact Fee Waiver
a. For certified applications of impact fee waivers that do not require Council
approval, the Water Department will review the certified applicant's application
and grant appropriate incentives.
b. For certified applications of impact fee waivers that require Council approval, the
Water Department will review the certified applicant's application and make
appropriate recommendations to the City Council.
5. Release of City Liens
For certified applications of release of City liens, the Housing and Economic
Development Department will release the appropriate liens on NEZ tax abatement
applicants. The Planning & Development Department will release liens on NEZ basic
incentives applicants.
VII. REFUND POLICY
In order for an owner/developer of a Project in a NEZ to receive a refund of development
fees or impact fees, the conditions set forth in the Refund of Development and Impact
Fee Policy, attached as Attachment "A", must be satisfied.
VII1. OTHER INCENTIVES
A. The City Council may add the following incentives to a NEZ in the Resolution adopting
the NEZ:
Adopted — February 5, 2013 18
1. Municipal sales tax refund
2. Homebuyers assistance
3. Gap financing
4. Land assembly
5. Conveyance of tax foreclosure properties
6. Infrastructure improvements
7. Support for Low Income Housing Tax Credit (LIHTC) applications
8. Land use incentives and zoning/building code exemptions, e.g., mixed-use, density
bonus, parking exemption
9. Tax Increment Financing (TIF)
10. Public Improvement District (PID)
11. Tax-exempt bond financing
12. New Model Blocks
13. Loan guarantees
14. Equity investments
15. Other incentives that will effectuate the intent and purposes of NEZ.
IX. Public Notification
a. Subject to subsection (b), in order for an owner/developer to apply to receive any
incentives provided for under the NEZ Tax Abatement Policy and Basic Incentives,
an owner/developer must meet with the following persons and organizations to
discuss the Project:
1. the Council Member for the District the Project is located; and
2. the neighborhood associations or community based organizations registered
with the city that are within 300 feet of the proposed Project. The
measurement of the distance between the proposed project and Neighborhood
Associations or Community Based Organizations shall be along the property
lines of the street fronts and from front door to front door, and in direct line
across the intersections.
b. Subsection (a) shall be satisfied upon:
1. the owner/developer meeting with the City Council Member for the District the
Project is located and the neighborhood associations or community based
organizations registered with the city that are within 300 feet of the proposed
Project; or
2. meeting with the City Council Member for the District the Project is located and
upon the owner/developer providing proof that the owner/developer attempted
to meet with the neighborhood associations and the community based
organizations registered with the city within 300 feet of where the proposed
Project is located and the associations or organizations failed to arrange a
meeting with the owner/developer within two weeks of initial contact.
c. Accepted proof of "attempts to meet" with the registered organizations will be
satisfied with the following:
1. a copy of a certified letter sent to the registered organization describing the
project and requesting a meeting and the green card from the post office; or
2. a copy of the e-mail sent to the registered organization describing the project
and requesting a meeting and the response from the organization.
Adopted — February 5, 2013 19
X. Ineliqible Proiects
The following Projects or Businesses shall not be
Fort Worth's Neighborhood Empowerment Zone
Incentives:
1. Sexually Oriented Businesses
2. Non-residential mobile structures
eligible for any incentives under the City' of
(NEZ) Tax Abatement Policy and Basic
XI. Denied Applications
a. NEZ applications will be denied 30 days after submission if all required
documentation is not received by the City.
b. The applicant will have 90 days after the date of denial to resubmit the NEZ
application without paying a new application fee.
Adopted — February 5, 2013 20
ATTACHMENT A
REFUND OF DEVELOPMENT AND IMPACT FEES POLICY
Purpose
This refund policy is for the purpose of establishing the conditions under which the City
may refund development and impact fees, normally waived through the Neighborhood
Empowerment Zone (NEZ).
Applicability
Unless expressly accepted, this policy applies to all development and impact fees
waived by the City through the NEZ.
Under the NEZ Tax Abatement Policy and Basic Incentives, City Departments are
authorized to waive impact and development fees for qualified projects located in a
designated NEZ. The impact fees include only water and sewer impact fees, up to
$55,000 for commercial, industrial, mixed-use or community facilities projects. The
development fees that can be waived through the NEZ include:
1. All building permit fees (including Plans Review and Inspections)
2. Plat application fee (including concept plan, preliminary plat, final plat, short form
replat)
3. Board of Adjustment application fee
4. Demolition fee
5. Structure moving fee
6. Community Facilities Agreement (CFA) application fee
7. Zoning application fee
8. Street and utility easement vacation application fee.
To take advantage of these waivers, applicants need to obtain a certification letter from
the Planning and Development Department.
Conditions for Refunds
The City will consider refunds only when circumstances beyond the developers control
prevent them from obtaining the qualification letter from the Planning and Development
Department.
A property owner and/or developer may qualify for a refund if the proposed
development project meets all criteria to receive a fee waiver under the NEZ Tax
Abatement and Basic Incentives Policy and:
a. The owner and/or developer was not made aware of the NEZ incentives at the
time the fees were paid; or
b. The owner and/or developer was mistakenly told that his/her property was not in
a designated NEZ; or
Adopted — February 5, 2013 21
�
c. The owner and/or developer has put funds in an escrow account with a City
Department while awaiting a decision from the City Council about his/her project;
or
d. City Council authorizes a City Department to issue a refund to the
owner/developer.
Refund Charge
A refund charge will be assessed to help defray administration cost associated with the
processing of refund check. The charge shall be 20% of the amount of the refund. This
charge will be automatically deducted from the total refund amount.
Statute of Limitations
Any request, action or proceeding concerning the refund of fees normally waived
through the NEZ must be filed within ninety days following the date that the fees were
paid. An applicant who does not submit a refund request within 90 days of the
transaction shall not qualify for a refund.
To obtain a refund the applicant needs to:
• submit a NEZ application to the Planning and Development Department for
determination of the eligibility for NEZ fee waivers, and
• submit a written request to the Department in which the fees were paid. Upon
receiving a confirmation from the Planning and Development Department that the
project meets all NEZ fee waiver criteria, that Department shall process the request
based on the qualifications discussed in this policy.
Exemptions
The provisions of this policy do not apply to:
a. Fees that are not waived through the NEZ program; and
b. Taxes and special assessments; and
c. City liens such as mowing, board-up, trash, demolition and paving liens.
An applicant shall not qualify for any refund if:
a. The applicant was made aware of the NEZ incentives before he/she pays the
fees; or
b. The applicant does not meet the requirements for NEZ incentives at the time
he/she paid the fees; or
c. The applicant paid the fees before the refund policy was put in place; or
d. The applicant paid the fees before the designation date of the NEZ.
Disclaimer
In the event of any conflict between the City's ordinances or regulations and this policy,
such ordinances or regulations shall control. In the event of any conflict between this
Adopted — February 5, 2013 22
policy and other policies or regulations adopted by the City Department issuing the
refund, such department policies or regulations shall control. The City reserves the right
to deny any or all request for refunds.
Adopted — February 5, 2013 23
Exhibit 2
Property Legal Description
BEINO a 0.61 S acro tract of land situated in the John W. Asbury 3urvoy, Abstract Numbor 50, xarrant County,
Texas being trnet of land described as Tract III in tha insrivmant to KD Ind�txias, LLC recorded in Documont
Number D20SOS9375, Deed Recorda of Tarrant County, Texas and all of the tract of land described in tha
insirument to TCD lndustries, LLC reeorded in Daeument Number U210055414, Deed Records of Tamant County,
Texas baing a portion of Lots 1& 2 and all of Lot 3, A& 5, Block 2, Byers and McCart Add9tion, an addition to
the City of Fort Worth accordiY�g to the plat recorded in Vainme 310, Paga 27, Plat ]tecords of Tarrant County,
Texas, said O.d 1 S acra tract of Iand being mora particularly dsscribed as follows:
I3EGiNNING at a PK Nail found at the intersection oFtha southeasbarly righ�of-way Ilne of Claburna Road (a
variabte width r3gh�of-way} and the southerly right�of-way line of Berry Street (a 6U foot wide righ�of way);
THENCE with the southerly xigh6of-way line oi Barry Stnet South 89° 3A' 24" East a distance of 37.06 foet
(D206059375=S89°40'E 37.08`) to a"Y" found tn concrete in the westeriy line of a 16 foot wide alloy for tha
northcast corner of said C,ot 1;
THENCE departing tha southeriy righ6of-way line of Berry Streot with the westorly tine of a 16 faot wide alley
South QO° l4' OS" East a distaneo of 2�9.72 feet (D206059375aS0U°04' 16"E 100.00'} to a 5/8 inch iron rod with cap
found for the southeast cornar of ssid Lot 5;
THENCB departing the westerly lino of a 16 foot wide alley with the southerly line of said Lot 5 South 89° 43' 04"
West a distance of 125.00 feet to a point in the easterly righ�of-way line of Gordon Avenue (a 60 foot wide righEof-
way) for tha southwost comer of said Lot 5 from which a found 1!2 inch lron rod with cap stamped "ALS" bears
South 17° 04' 54" East a distance of O. lb feet;
THENCE with the eastcriy right-of-way line of C3ordon Avenue North 00° 14' 04" West a distance of l SOAb feet to
an "X" cut in concrete �n the southeasterly righ6�of-way line of Cieburne itoad;
THENCE with the sontheasterty right-of-way iine of C[ebume Road the foUowing:
North 89° 47' 44" East a distance of 0.97 feet to sn "X" cut 1n concrete; .��
r '
North 40° A2' 29" �ast a distanco of 132.72 (D2060593�5=N40°51'E t32.75') to the POiNT OF BEGINnTIN(3;
CONTAiNiN� a coinputed area of 0.615 acres{26,810 square feet) of land.
Exhibit 3
y FORT WORTH /� �-l3-/vZl3- ��o� 3
Application No.
CITY OF FORT W ORTH
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 Citv Fort Worth
� Non Refundable Application fee — For all Basic Incentives applications excluding Tax Abatement the
application fee is $25.00. For multifamily, commercial, industrial, commercial 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: $J 00.00 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 l 1x17 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
� Reauired - 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 April 6, 2004 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 TH� ABOVE CHECKLIST ARE SUBMITTED WITHIN 30 DAYS AFTER THE
APPLICATION IS RECENED.
YOU MUST APPLY FOR TAX ABATEMENT BEFORE ANY BUILDING PERMITS ARE 15SUED FOR YOUR
PROPERTY AND BEFORE ANY 1MPROVEMEIVTS ARE MADE TO YOUR PROPERTY. IT TAKES 60 TO 90
BUSINESS DAYS TO COMPLETE THE TAX ABATEMENT AGREEMENT APPROVAL PROCCSS AFTER THE
ISSUAlYCE OF NEZ CERTIFICATION DEPENDING ON THE COMPLEXITY OF YOUR PROJECT. ALL
BUILDING PERMITS MUST BE PULLED WITHIN THE 12 MONTH PERIOD THAT CERTIFICAT[ON WAS
APPROVED, OR WITHIN TH� 12 MONTH PERIOD THAT THE TAX ABATEMENT WAS APPROVED, OR YOU
WILL BE REQUIR�D TO RE-APPLY FOR NEZ INCENTIVES.
II. APPLICANT / AGENT INFORMATION
1. Appticant:
3. Address:
4. Phone no.:
6. Email:
7. Agent (if any)
S. Address:
9. Phone no.:
11. Email:
� r.� ► '_�.5 : . :�.� ' � � . . , , ►I ��..
� r,�..�__ :-� �, -
�
•� �
,. _. . . . �1 �. _ . _
Street
City State Zip
10. Fax No.:
t
Revised July 22, 2010
FORT WORT
PROJECT �LIGIBILITY
Appl'tcation No.
1. Pte��se list down the »ddresses and legat 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 av�ilable. Attach a map showing the location of the project
• there are taxes past due; or
• there aze City liens; 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.
., ' � ti � •�
. .� �� ' ��•
i ; � :i: � � � �� 1� i � � (• ,, ',
��L��-��L�'0���
�0 � �L�L� �
L'����'���� ■
�0 � �'�� �
L�L�������� ■
L�������L�'0�
L'L7��'L■��1����
OL� � 0�,�_'
�0�_�-'L�00�
L'0 � Ot�.,t�
(1'lease attach Additional sheets ot paper as neeaeu.)
If there are taxes due or liens against any property in the City of Fort Worth you mav not be eligible
for NEZ incentives
Revised July 22, 201U 2
2. For each property listed in Table 1, ptease check the boxes below to indicate if:
FURT WORTH
i �
3� Do you own otlier properties nnder other names?
If Yes, please specify
❑ Yes � No
4. Does the prnposed project couform witl� City of Fort Worth Zoning?
►� .
❑ No
If no, what steps are being taken to insure compliance?
5. Pro,ject ❑ ❑ � ❑ ❑ ❑
Type: Single Family Muiti- Family Commercia( Industrial Community Facilities Mixed-Use
❑ Owner Occupied
� Rentnl Property
G. Please describe the proposed residential or commercial project:
h c t . � _ 1 _ _ /' 1 _ 1_ — -.--
7. If your project is a commercial, industriai, or mixed-use project, please describe the types of
businesses that are being proposed: TALA 3E, 1
S. Is this a new construction or rehab project? �New Construction ❑ Rehab
9� How much is the total development cost of your project?
10. Will the eligible rehabilitation work* equal to at least 30% of the Tarrant Appraisal District (TAD)
assessed value of the structure during t6e year rehabilitaiion occurs? � Yes ❑ No
*Eligible rehabilitation includes only physical improvements to real property. It does NOT include:
Front yard fencing consisting of chain-link or solid material eonstruction; personal property such as furniture,
appliances, equipment, and/or supplies. Total eligible rehabilitation costs shaU 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? s, //� square feet
* If applying for a�tax.abatement please.answer questions 12-16. If not.skip to. part IIIlncentives
12. For a sin�te-familv homeownershin. miaed-use, or multi-familv develoument nroiect, please fill out
the number of` residential units based on income range of owners or renters in tlie following table.
Table 3
Number of
npplication No.
or Renters
13. For a multifamilv aroiect to be qualified for tax abatement, at leasf 20% of total units shall be
affordable to families at or below 80% of AMF'I. Check the box if you are requesting a waiver of this
requirement. ❑
14. For a commercial. industrial or communitv facilities proiect,
Revised July 22, 2010 3
**ANIFI; Area Median Family Income. Please see attachment for income and housing payment guidelines.
indicate square footage of non-
FORTw4� Appl�cation No.
�
15. How much will be your Capital Investment*** on the project? Please use the following table to provide
the detaits and amount of your Capital Investment (Attached additional sheets if necessary).
expansion, and facility modemization. Capital lnvestrrteni 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, communitv facilitv or mixed-use proiect, how many employees will the
pro,ject �enerate? �
17. For a mixed-use �roiect, please indicate the percentage of atl uses in t6e project in the following table.
Table 5 Percentage of Uses in a Mixed-Use Project
T3'Pe ' Square•Footage. ;,
Residential
Office
Entertainment
Retail sales
Service
Total _ :
I. ,�
Percentage
III. INCENTIVES - What incentives are you applying for? -
Municiaal Pronertv Tax Abatements
Must provide Finai Plat Cabinet and Slide for Tax Abatement Cabinet 51ide
� 5 years
❑Residential owner occupied
❑ More than 5 years
OResidential Rental Property ❑Apartments (5 plus units) ❑ Commercial
Develonment Fee Waivers
� All building permit related fees (including Plans Review and Inspections)
� Plat application fee (including concept plan, preliminary plat, fnal plat, short form replat)
❑ Zoning application fee ❑ Board of Adjustment application fee
� Demolition fee ❑ Structure moving fee
❑ Community Facilities Agreement (CFA) application fee
❑ Street and utility easement vacation application fee
Imnact Fee Waivers - The maximum water/wastewater impact fee waiver amount for a commercial, industrial, mixed-
use, or community facility development project is equivalent to the watedwastewater impact fee of two 6-inch meters
,� Water
Release of Citv Liens
❑ Weed liens
(Meter Size �j /L t�
❑ Paving liens
(No. of ineters �'- � ❑ Transportation
❑ Board up/open structure liens ❑ Demolition liens
Revised .luly.22, 2U 10 4
I,
a
�
FORT WORTH
App(ication No.
III. ACKNOWLEDGMENTS
I hereby certify that the information provided is true and accurate to the best of my Irnowtedge. 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 responsibte 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 appiication will not be processed if it is incomplete. I agree to provide any additional
information for determining etigibility as requested by the City.
k . D Ucr1L�'
OR TYPED NAME)
-.,�.
(AUTHORIZED
Please msii or faa your application to:
City of Fort Worth Planning and Development Department
1000 Throckmorton Street, Fort Worth, Tezas 76102
Tel: (8171392-2222 Faa: (817) 392-8116
�
❑ Yes QNo
❑ Mixed-Use
❑ Yes 0 No
i? � Yes
t? �Yes
(�Yes
es? �Yes
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 Offic� Use Onty
Application No. z� � -��JIn which NEZ? �-r�'')(��,1►�c��YS t�ouncil District
Application Completed Date (Received Date): Conform with Zoning?
Type? ❑ SF ❑ Multifamily �ommerciai ❑ Industrial ❑ Community facilities
Construction completion date? ❑ Before NEZ fter NEZ Ownership/Site Contro
TAD Account No. (� � Consistent with the NEZ pla
Meet affordability test? � Yes ❑ No Minimum Capital Investmer
Rehab at or higher than 30%? �„Yes ❑ No Meet mixed-use definition?
Tax current on this property7 �..Yes ❑ No Tax current on other propert
City liens on this property?
• Weed liens
• Board-up/open structure liens
• Demolition liens
• Paving liens
• Order of demolition
Certified? �-Yes ❑ No
`,.
If not certified, reason
❑ Yes � No
❑ Yes �] No
❑ Yes � No
❑ Yes (� No
❑ Yes�
Certified by \,,
Ii
,/
Referred to: DEconomic DeveIopment ❑Housing
City liens on other properties?
• Weed liens
• Board-up/open structure liens
• Demolition liens
• Paving liens
• Order of demolition
Date certification issued?
(DATE)
❑ Yes
❑ Yes
❑ Yes
❑ Yes
❑ Yes
� ,"� � "
❑ No
❑ No
❑ No
❑ No
� �
� � .
� •
� �
!:: .
QDevelopment ❑Water ❑Code (�TPW
Revised luly 22, 2010
5
Exhibit 4
Proiect Description
- Two story Taco Bell restaurant with a drive-thru.
- Building consists of approximately 2,556 square feet on each floor for a total of 5,112
square feet.
- Second floor planned for future office/training use.
- Exterior construction material will consist of brick and stone.
- Project also includes an outdoor dining area with seating for 16.
- Extensive landscaping.
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DATE:
CODE:
3/5/2013
C
REFERENCE
NO..
TYPE:
G26136
NON-
CONSENT
LOG NAME:
PUBLIC
HEARING:
17NEZ1913WBERRY
NO
SUBJECT: Authorize Execution of a Five-Year Tax Abatement Agreement with Piney Woods
Restaurants, LP, for the Construction of a Two-Story Taco Bell Restaurant on Property
Located at 1913 West Berry Street in the Berry/University Neighborhood Empowerment
Zone (COUNCIL DISTRICT 9)
RECOMMENDATION:
It is recommended that the City Council authorize execution of a five-year Tax Abatement Agreement
with Piney Woods Restaurants, LP, for the construction of a two-story Taco Bell Restaurant on
property located at 1913 West Berry Street in the Berry/University Neighborhood Empowerment
Zone, in accordance with the Neighborhood Empowerment Zone Tax Abatement Policy and Basic
Incentives.
DISCUSSION:
Piney Woods Restaurants, LP (Property Owner), is the owner of the property described as Lot 2&
Ept Lot 1, Block 2, Byers & McCart Addition, an Addition to the City of Fort Worth, Tarrant County,
Texas, according to the Plat recorded in Volume 310, Page 27, Plat Records, Tarrant County Texas,
1913 West Berry Street, Fort Worth, Texas, 76110. The property is located within the
Berry/University Neighborhood Empowerment Zone (NEZ).
The Property Owner plans to invest an estimated amount of $794,000.00 to build a two-story Taco
Bell restaurant (Project). 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.
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 this time,
Tarrant Appraisal District has the improvements on the property valued in the amount of
$31,017.00. The owner has planned to demolish the existing building on the 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 $6,788.70 per year for a total amount of $33,943.50 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 a�liate
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 Iocated in COUNCIL DISTRICT 9.
Page 1 of 2
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that this action will have no material effect on
City funds.
TO Fund/AccounUCenters
FROM Fund/Account/Centers
Submitted for City Manaqer's Office b�
Oriqinatinq Department Head:
Additional Information Contact:
Fernando Costa (6122)
Jay Chapa (5804)
Cynthia Garcia (8187)
Sarah Odle (7316)
ATTACHMENTS
1913 W Berrv-Map for Council.pdf
Colorrenderings.pdf
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