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HomeMy WebLinkAboutContract 44421 (2)_ .. — ._' 4. ,..,. � .'�� ._}_ ' �.._. ��'� l ' �' � l ,. ,� . :. . : ._ ... a._.._ �. . - i ` - - TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHSORHOOD EMPOWERMENT ZONE 4009 Wheeler 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 Cesar Velazco ("Owner"), owner of property located at 4009 Wheeler Street, according to the Plat recorded in Book 388-J, Page 533, Plat Records, Tarrant County, Texas. The City Council of the City of Fort Worth ("City Council") hereby finds and the City and Owner hereby agree that the following statements are true and correct and constitute the basis upon which the City and Owner have entered into this Agreement: A. Chapter 378 of the Texas Local Government Code allows a municipality to create a Neighborhood Empowerment Zone (NEZ) if the municipality determines that the creation of the zone would promote: (1) The creation of afFordable housing, including manufactured housing in the zone; (2) An increase in economic development in the zone; (3) An increase in the quality of social services, education, or public safety provided to residents of the zone; or (4) The rehabilitation of affordable housing in the zone. B. Chapter 378 of the Texas Local Government Code provides that a municipality that creates a NEZ, may enter into agreements abating municipal property taxes on property in the zone. C. On July 31, 2001, the City adopted basic incentives for property owners who own property located in a NEZ, stating that the City elects to be eligible to participate in tax abatement and including guidelines and criteria governing tax abatement agreements entered into between the City and various third parties, titled "NEZ Basic Incentives", these were readopted on February 5, 2013 (Resolution No. 4180). The February 5, 2013 NEZ Incentives are attached hereto as Exhibit "1" hereby made a part of the Agreement for all purposes. D. The NEZ Incentives contain appropriate guidelines and criteria governing tax abatement agreements to be entered into by the City as contemplated by Chapter 312 of the Texas Tax Code, as amended ("Code"). E. On August 19, 2003, the City Council adopted Ordinance No. 15645 ("Ordinance") establishing "Neighborhood Empowerment Reinveshnent Zone No. 11," City of Fort Worth, Texas ("Zone"). This reinvestment zone was renewed on August 5, 2008 by the City Council and the adopted Ordinance No. 18215. F. Owner owns certain real property located entirely within the Riverside NEZ and that is more particularly described in Exhibit "2", attached hereto and hereby made a part of this Agreement for all purposes (the "Premises"). :r � ��e ��� �r ��C�IVED ��1AY � 1 2�i3 , ;. R�CEIV�D ,qPf� � 6 Zt�i� � - , G. Owner or its assigns plan to construct the Required Improvements, as defined in Section 1.1 of this Agreement, on the Premises to be used as a single-family residence that will be Owner occupied. H. On March 14, 2013, Owner submitted an application for NEZ incentives and for tax abatement to the City concerning the contemplated use of the Premises (the "Application"), attached hereto as Exhibit "3" and hereby made a part of this Agreement for all purposes. I. The City Council finds that the contemplated use of the Premises, the Required Improvements, as defined in Section 1.1, and the terms of this Agreement are consistent with encouraging development of the Zone in accordance with the purposes for its creation and are in compliance with the NEZ Incentives, the Ordinance and other applicable laws, ordinances, rules and regulations. J. 'The terms of this Agreement, and the Premises and Required Improvements, satisfy the eligibility criteria of the NEZ Incentives. K. Written notice that the City intends to enter into this Agreement, along with a copy of this Agreement, has been furnished in the manner prescribed by the Code to the presiding officers of the governing bodies of each of the taxing units in which the Premises is located. NOW, THEREFORE, the City and Owner, for and in consideration of the terms and conditions set forth herein, do hereby contract, covenant and agree as follows: 1. OWNER'S COVENANTS. 1.1. Real Property Improvements. Owner shall construct, or cause to be constructed, on and within the Premises certain improvements consisting of a single-family residence, of at least 3,060 square feet in size and built to the specifications listed in Exhibit "4", (collectively the "Required Improvements"). Tarrant Appraisal District must appraise the property (improvements and land) within 10% of $88,000.00. Owner shall provide a survey of the home upon completion of the Required Improvements. The parties agree that the final survey shall be a part of this Agreement and shall be labeled Exhibit "5". Minor variations and more substantial variations if approved in writing by both parties to this Agreement before construction is undertaken in the Required Improvements from the description provided in the Application for Tax Abatement shall not constitute an Event of Default, as defined in Section 4.1, provided that the conditions in the first sentence of this Section 1.1 are met and the Required Improvements are used for the purposes and in the manner described in Exhibit "4". 1.2. Completion Date of Required Improvements. Owner certifies that the Required Improvements will be completed within two years from the date of Council approval. The abatement will automatically terminate two years after Council approval if a building permit has not been pulled and a foundation has not been poured, unless delayed because of force majeure, in which case the two years shall be extended by the number of days comprising the specific force majeure. For purposes of this Agreement, force majeure shall mean an event beyond Owner's reasonable control as determined by the City of Fort Worth in its sole discretion, which shall not be unreasonably withheld, including, without limitation, delays caused by adverse weather, delays in receipt of any required permits or approvals from any governmentai authority, acts of God, or fires. Force majeure shall not include construction delays caused due to purely financial matters, such as, without limitation, delays in the obtaining of adequate financing. 1.3. Use of Premises. Owner covenants that the Required Improvements shall be used as the Owner's primary residence in accordance with the NEZ Incentives. In addition, Owner covenants that throughout the Term, the Required Improvements shall be maintained for the purposes set forth in this Agreement. 2. ABATEMENT AMOUNTS, TERMS AND CONDITIONS. Subject to and in accordance with this Agreement, the City hereby grants to Owner a real property tax abatement of City of Fort Worth-imposed taxes on the Premises for the Required Improvements, as specifically provided in this Section 2("Abatement"). Abatement does not include taxes from other taxing entities. 2.1. Amount of Abatement. The actual amount of the Abatement granted under this Agreement shall be based upon the increase in value of the Premises due to the Required Improvements, over its value on April 16, 2013, the year in which both parties executed this Agreement. If the square footage requirement and the appraised value of the Required Improvements are less than as provided in Section l.l of this Agreement, Owner shall not be eligible to receive any Abatement under this Agreement. 2.2 Increase in Value. The Abatement shall be 100% of the increase in value from the construction of the Required Improvements and shall apply only to taxes on the increase in value of the Premises due to construction of the Required Improvements. The Abatement shall not apply to taxes on the land, nor shall the abatement apply to mineral interests. 2.3. Term of Abatement. The term of the Abatement ("Term") shall begin on January 1 of the year following the calendar year in which the Required Improvement is completed ("Beginning Date") and, unless sooner terminated as herein provided, shall end on December 31 immediately preceding the fifth (Sth) anniversary of the Beginning Date. 2.4 Protests Over Appraisals or Assessments. Owner shall have the right to protest and contest any or all appraisals or assessments of the Premises andlor improvements thereon. 2.5. Abatement Application Fee. The City acknowledges receipt from Owner of the required Application fee of $100.00. The application fee shall not be credited or refunded to Owner or its assigns for any reason. 3. RECORDS, AUDITS AND EVALUATION OF REQUIRED IMPROVEMENTS. 3.1. Inspection of Premises. Between the execution date of this Agreement and the last day of the Term, at any time during normal office hours throughout the Term and the year following the Term and following reasonable notice to Owner, the City shall have and Owner shall provide access to the Premises in order for the City to inspect the Premises and evaluate the Required Improvements to ensure compliance with the terms and conditions of this Agreement. Owner shall cooperate fully with the City during any such inspection and/or evaluation. 3.2. Certification. Owner shall certify annually to the City that it is in compliance with each applicable term of this Agreement. The City shall have the right to audit at the City's expense the Required Improvement with respects to the specifications listed in E�ibit "4". Owner must provide documentation that Owner is using the Required Improvements as its primary residence (collectively, the "Records") at any time during the Compliance Auditing Term in order to determine compliance with this Agreement. Owner shall make all applicable Records available to the City on the Premises or at another location in the City following reasonable advance notice by the City and shall otherwise cooperate fully with the City during any audit. 3.3 Provision of Information. On or before March 1 following the end of every year during the Compliance Auditing Term and at any other time if requested by the City, Owner shall provide information and documentation for the previous year that addresses Owner's compliance with each of the terms and conditions of this Agreement for that calendar year. Failure to provide all information within the control of Owner required by this Section 3.3 shall constitute an Event of Default, as defined in Section 4.1. 3.4 Determination of Compliance. On or before August 1 of each year during the Compliance Auditing Term, the City shall make a decision and rule on the actual annual percentage of Abatement available to Owner for the following year of the Term and shall notify Owner of such decision and ruling. The actual percentage of the Abatement granted for a given year of the Term is therefore based upon Owner's compliance with the terms and conditions of this Agreement during the previous year of the Compliance Auditing Term. 4. EVENTS OF DEFAULT. 4.1. Defined. Unless otherwise specified herein, Owner shall be in default of this Agreement if (i) Owner fails to construct the Required Improvements as defined in Section l.l .; (ii) ad valorem real property taxes with respect to the Premises or the Required Improvements, or its ad valorem taxes with respect to the tangible personal property located on the Premises, become delinquent and Owner does not timely and properly follow the legal procedures for protest and/or contest of any such ad valorem real property or tangible personal property taxes; (iii) OWNER DOES NOT USE THE PREMISES AS PRIMARY RESIDENCE ONCE THE ABATEMENT BEGINS; or (iv) OWNER DOES NOT COMPLY WITH CHAPTER 7 AND APPENDIX B OF THE CODE OF ORDINANCES OF THE CITY OF FORT WORTH (collectively, each an "Event of Default"). 4.2. Notice to Cure. Subject to Section 5, if the City determines that an Event of Default has occurred, the City shall provide a written notice to Owner that describes the nature of the Event of Default. Owner shall have sixty (60) calendar days from the date of receipt of this written notice to fully cure or have cured the Event of Default. If Owner reasonably believes that Owner will require additional time to cure the Event of Default, Owner shall promptly notify the City in writing, in which case (i) after advising the City Council in an open meeting of Owner's efforts and intent to cure, Owner shall have ninety (90) calendar days from the original date of receipt of the written notice, or (ii) if Owner reasonably believes that Owner will require more than ninety (90) days to cure the Event of Default, after advising the City Council in an open meeting of Owner's efforts and intent to cure, such additional time, if any, as may be offered by the City Council in its sole discretion. 4.3. Termination for Event of Default and Pavment of Liquidated Dama�es. If an Event of Default which is defined in Section 4.1 has not been cured within the time frame specifically allowed under Section 4.2, the City shall have the right to terminate this Agreement immediately. Owner acknowledges and agrees that an uncured Event of Default will (i) harm the City's economic development and redevelopment efforts on the Premises and in the vicinity of the Premises; (ii) require unplanned and expensive additional administrative oversight and involvement by the City; and (iii) otherwise harm the City, and Owner agrees that the amounts of actual damages therefrom are speculative in nature and will be difficult or impossible to ascertain. Therefore, upon termination of this Agreement for any Event of Default, Owner shall pay the City, as liquidated damages; all taxes that were abated in accordance with this Agreement for each year when an Event of Default existed and which otherwise would have been paid to the City in the absence of this Agreement. The City and Owner agree that this amount is a reasonable approximation of actual damages that the City will incur as a result of an uncured Event of Default and that this Section 4.3 is intended to provide the City with compensation for actual damages and is not a penalty. This amount may be recovered by the City through adjustments made to Owner's ad valorem property tax appraisal by the appraisal district that has jurisdiction over the Premises. Otherwise, this amount shall be due, owing and paid to the City within sixty (60) days following the effective date of termination of this Agreement. In the event that all or any portion of this amount is not paid to the City within sixty (60) days following the effective date of termination of this Agreement, Owner shall also be liable for all penalties and interest on any outstanding amount at the statutory rate for delinquent taxes, as determined by the Code at the time of the payment of such penalties and interest (currently, Section 33.01 of the Code). 4.4. Termination at Will. If the City and Owner mutually determine that the development or use of the Premises or the anticipated Required Improvements are no longer appropriate or feasible, or that a higher or better use is preferable, the City and Owner may terminate this Agreement in a written format that is signed by both parties. In this event, (i) if the Term has comrnenced, the Term shall expire as of the effective date of the termination of this Agreement; (ii) there shall be no recapture of any taxes previously abated; and (iii) neither party shall have any further rights or obligations hereunder. 4.5 Sexuallv oriented business & Liquor Stores or Package Stores. a. Owner understands and agrees that the City has the right to terminate this agreement if the Required Improvements contains or will contain a sexually oriented business. b. Owner understands and agrees that the City has the right to terminate this agreement as determined in City's sole discretion if the Required Improvements contains or will contain a liquor store or package store. 5. EFFECT OF SALE OF PREMISES. Except for an assignment to Owner's first mortgagee or to a homebuyer who will use the Required Improvements as its primary residence or the homeowner's mortgagee which City Council hereby agrees to, the Abatement granted hereunder shall vest only in Owner; however if Owner sells the Premises and Required Improvements, this Abatement cannot be assigned to a new owner of all or any portion of the Premises and/or Required Improvements without the prior consent of the City Council, which consent shall not be unreasonably withheld provided that (i) the City Council finds that the proposed assignee is financially capable of ineeting the terms and conditions of this Agreement and (ii) the proposed purchaser agrees in writing to assume all terms and conditions of Owner under this Agreement. Owner may not otherwise assign, lease or convey any of its rights under this Agreement. Any attempted assignment without the City Council's prior consent shall constitute grounds for termination of this Agreement and the Abatement granted hereunder following ten (10) calendar days of receipt of written notice from the City to Owner. Upon assignment to Owner's first mortgagee, or to a homebuyer who will use the Required Improvements as its primary residence or the homeowner's mortgagee, Owner shall have no further obligations or duties under this Agreement. In addition, upon assignment to any other entity with the written consent of City Council, Owner shall have no further duty or obligation under this Agreement. IN NO EVENT SHALL THE TERM OF THIS AGREEMENT BE EXTENDED IN THE EVENT OF A SALE OR ASSIGNMENT. THE FAILURE OF OWNER TO SEND THE CITY NOTIFICATION OF THE SALE OF THE REQUIRED IMPROVEMENTS AND EXECUTION OF THE ASSIGNMENT OF THIS AGREEMENT WITH THE NEW OWNER WITHIN 30 DAYS OF THE TRANSFER OF OWNERSHIP OF THE REQUIRED IMPROVEMENTS SHALL RESULT IN THE AUTOMATIC TERMINATION OF THIS AGREEMENT. THE NOTICE AND EXECUTED ASSIGNMENT MUST BE SENT TO THE CITY BY CERTIFIED MAIL OR BY HAND DELIVERY. 6. NOTICES. All written notices called for or required by this Agreement shall be addressed to the following, or such other party or address as either party designates in writing, by certified mail, postage prepaid, or by hand delivery: City: City of Fort Worth Attn: City Manager's Office 1000 Throckmorton Fort Worth, Texas 76102 and Housing & Economic Development Dept. Attn: Jay Chapa, Director 1000 Throckmorton Fort Worth, Texas 76102 Owner: Cesar Velazco 1320 Harper Street Fort Worth, Texas 76111 7. MISCELLANEOUS. 7.1. Bonds The Required Improvements will not be financed by tax increment bonds. This Agreement is subject to the rights of holders of outstanding bonds of the City. 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 E�iibit "3 ", the body of this Agreement shall control. 7.4. Future Application. A portion or all of the Premises and/or Required Improvements may be eligible for complete or partial exemption from ad valorem taxes as a result of existing law or future legislation. This Agreement shall not be construed as evidence that such exemptions do not apply to the Premises and/or Required Improvements. 7.5. City Council Authorization. This Agreement was authorized by the City Council through approval of Mayor and Council Communication No. C-26203 on April 16, 2013, which, among other things, authorized the City Manager to execute this Agreement on behalf of the City. 7.6. Estoppel Certifcate. Any party hereto may request an estoppel certificate from another party hereto so long as the certificate is requested in connection with a bona fide business purpose. The certificate, if requested, will be addressed to the Owner, and shall include, but not necessarily be limited to, statements that this Agreement is in full force and effect without default (or if an Event of Default exists, the nature of the Event of Default and curative action taken and/or necessary to effect a cure), the remaining term of this Agreement, the levels and remaining term of the Abatement in effect, and such other matters reasonably requested by the party or parties to receive the certificates. 7.7. Owner Standin�. Owner shall be deemed a proper and necessary party in any litigation questioning or challenging the validity of this Agreement or any of the underlying laws, ordinances, resolutions or City Council actions authorizing this Agreement and Owner shall be entitled to intervene in any such litigation. 7.8. Venue and Jurisdiction. 'This Agreement shall be construed in accardance with the laws of the State of Texas and applicable ordinances, rules, regulations or policies of the City. Venue far 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 Headings Not Controllin�. 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 and Owner, their assigns and successors in interest, as to the matters contained herein. Any prior or contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict with any provision of this Agreement. This Agreement shall not be amended unless executed in writing by both parties and approved by the City Council. This Agreement may be executed in multiple counterparts, each of which shall be considered an original, but all of which shall constitute one instrument. [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.] EXECUTED this ;;�'�day of EXECUTED this ��ay of CITY OF FORT WORTH: I:� A'I )13, by the City of Fort Worth, Texas. 2013, by Cesar Velazco. OWNER: BY' �� esar Velazco Owner : APPROVED AS TO FORM AND LEGALITY: �� ��,�, , -, � By: '�- :;.�i� ��.� ' Melinda Ramos Assistant City Attorney M & C: C-26203 OFFICIAL I�ECORD C�`�"Y �ECR��I' f� 1NO�t'i"a, �Tl�( Fernando Costa Assistant City Manager 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 LTNDER MY HAND AND SEAL OF OFFICE this �J� day of �� , 2013. � i� i^ n Notary Public in and for the,State of Texas� , MY � MOMISS ONy Xp RES July 10, 2013 Notary's Printed Name STATE OF TEXAS COUNTY OF TARRANT § § BEFORE ME, the undersigned authority, on this day personally appeared Cesar Velazco, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed, in the capacity therein stated. �IVEI� DER MY HAND AND SEAL OF OFFICE this �� of � � . 25113. ., Notary Ptrtslic in and for the State of Texas SARAHJ.ODLE MY COMMISSION EXPIRES Novernber 5, 2015 Notary's Printed Name Exhibit 1: Exhibit 2: Exhibit 3: NEZ Incentives Property Description Application: (NEZ) Incentives and Tax Abatement Exhibit 4: Required Improvements description including kind, number and location of the proposed improvements. Exhibit 5: Final Survey Exhibit 1 C1TY 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 Unifs" means affordable to persons earning /ess than 80% Area Median Family Income (AMFI) as det'ined by U. S. Department of Housing and Urban Development (HUD) for srngle 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 u "Capital Investment" includes oniy 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 Statement" 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. "Communify 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 Business 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 ProjecY' 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 habitab/e 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 Appraisa/ District. Adopted — February 5, 2013 2 "Project" means a "Residential Project'; "Commercial/Industrial Development Project'; "Community Facility Development Project'; "Mixed-Use Development Project'; or a "Multi-family Development Project." "Real Property Building Code. Improvements" — means a habitable structure as defined by the Fort Worth "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 enterp�ise zone pursuant to the Texas Enterprise Zone Act, codified in Chapter 2303 of the Texas Government Code. "Residential Project" — means less than 3 residential units. III. A. MUNICIPAL PROPERTY TAX ABATEMENTS 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: a. 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 b. Property is rehabilitated after NEZ designation and City Council approval of the tax abatement; c. 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 d. 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 Prope�ty 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 aareement 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 applv. 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 throuqh 5 of the Tax Abatement Agreement 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% 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 throuah 10 of the Tax Abatement Aareement 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 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 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 Citv Ad Valorem taxes for 5 vears If an applicant applies for a tax abatement aqreement with a term of five vears or tess, 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 greater. 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 Development projects for up applicant may apply with the such abatement. a Commercial, Industrial and Community Facilities to 10 years are subject to City Council approval. The Housing and Economic Development Department for 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 throuah 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: 0 � c. A commercial, industrial o� 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 For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the Real Property Improvements shalt 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. Any other terms as City Council of the City of Fort Worth deems appropriate, including, but not limited to: 1. utilization of Fort Wo�th 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 vears 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 aareement with a term of more than five vears, this section shall applv. 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 Aareement 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 �mprovements, or $200,000, whichever is greater. Years 6 throuqh 10 of the Tax Abatement Aareement 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, 2413 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 II. 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 1 st 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. � 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 agreement 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: �-ldopted — February 5, 2013 12 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 or applicant; c. 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 d. 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. � Approval 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 zonina district. DEVELOPMENT FEES 1. Once the Application for NEZ Incentives has been approved and certified by the City, the following fees for services performed bv 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: a) b) c) d) e) f) 9) h) i) 1) k) I) m) All Building Permit related Fees (including Plans Review and stated in IV B. 2. below Plat Application Fee (including Concept Plan, Preliminary Plat, 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 Transpo►tation Impact Fees Urban Forestry Application Fees Sign Permit Fees Inspections) except as Final Plat, Short Form 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 wiil be considered for approval by City Council on a case-by-case basis. C. ►� ' � 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 NEZ. a. Automatic 100% waiver of wate� and wastewater impact fees up equivalent to two 6-inch meters for each commercial, industrial, community facility development project; whichever is less. to $55,000 or mixed-use or 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. A. RELEASE OF CITY LIENS 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 tiens, 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. D. 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. Liens 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. C�I�►�iC�7���L�7►��I�►�? 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 I11. 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 II I., 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 Projects a. � c. 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. Tax Abatement for Residentiai Properties and Multi-family Development For a completed and ce�tified 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. 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 (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. 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 othetwise 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 projecYs 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 (MNVBEs). Adopted — February 5, 2013 17 (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 applicant's 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 applicanYs 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. VIII. 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 befinreen 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 eligible for any incentives under the City' of Fort Worth's Neighborhood Empowerment Zone (NEZ) Tax Abatement Policy and Basic Incentives: 1. Sexually Oriented Businesses 2. Non-residential mobile structures 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 - .. 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 Uniess 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 aualified 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 Description 4009 Wheeler Street, according to the Plat recorded in Book 388-J, Page 533, Plat Records, Tarrant County, Texas Exhibit . �Q��1'� � �❑ u �� � � ract o the pi•operty (only if applying for release of City )iens) A reduced 1 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 cast breakdown for the project Copy of Incorporation Papers noting a11 principals, partners, and agents if applicable Re�uired - Meet with the Councihnember and Neighborhood 8t other Organizations representing the NEZ as outlined in the Public Notice requirement of the NEZ Policy and Guidelines revised Apri1 6, 2004 or f'ollowed 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 PROCE5SED EOR CERTIEICATION UNTIL ALL REQUiRED llOCUMENTS SHOWN IN THE ABOVE CIIECKLIST ARE SUI3MITTED WITHiN 30 DAYS AN'I'ER THE APPLICATION IS RECEIVED. YOU MUST APPLY FOR TA�C ABATEMENT BErORE ANY BUILDING PERMITS ARE ISSUED FOR YOUR NROPERTY AND BEFORE ANY IMPROVEMENTS ARE MADE TO YOUR PROPERTY. IT TAKES fi0 TO 90 BUS[NESS DAYS TO COMPLETE TNE TAX ABATENIENT AGREEMENT APPROVAL PROCESS AFTER THE ISSUANCE OF NEZ CERTIFiCAT10N DEPENDING ON THE COMPLEXITY OF Y011R PROJECT. ALL [3UILDING PERMITS MUST 13E PllLLED WITFIIN TNE 12 MONTH PERIOD THAT CERTIFICATION WAS :�PPROVED, OR WITHTN THE 12 MONTH PERIOD TI�AT THE TAX ABA'TENtENT WAS APPROVED, OR YOU WILL 13E REQl11RED TO 12G-APPLY FOR NEZ INCENTIVES. ii. Arrt,lc;Ai�J'1' / AGENT INFORMATION 1. Applicant: ��SaiZ �E!„�,�p 2, � ContactPerson: G',E5"Q2 3. Address: UELA�Gp t �ZO NAiZr�EF2 -3. Phone no.: 6. Email: 7. Agent (if any) 8. Address: 9. Phone no.: 11. Email: Revised July 12, 2011 Apnlication No. I�JZ 13 - �o1Z�,,, '-- -"-'-"' �.'1. �-�i�'-�-n i��� i- t'lease submit the following documentatian: A completcd application form A list of a11 properties owned by the appiicant, o4vner, developer, associates, principals, partners, and �gents in the City Fort Worth Non Ref�ndable Application fee — For �II Basic (ncentives applications exeluding Tax qbatement the application fee is $25.00. For multifamily, commercial, industrial, commereial facilities, and mixed-use t�x �batement applications: 0.5% of the total Capita) Investment of the project, with a$200.00 minimum and not to eYceed'�2,000.00; For �•esidential tax abatement applications: $100.00 per house. Proof of ownership, such as a warranty deed, aFfidavit of heirship, or a probated will OR evidence of site conh•ol, such as option to buy (A re�;istered warranty deed is required for tax abatement application.) Title abst f t=o FzT u./o,z Street �n -98� ��s� s. N� City Fax No.: Street City ��� 10. Fas No.: 1 `7X — State Zip N� State Zip li� _ , �. - � ,_ _ ., _ , � _ .,� ,�,�_r�� ._ e...-0._ � CITY OF FORT WORTH 1VETGHBORHOOD EMPOWERMENT ZUNF, (NEZ) PROGRAM . FORT WORTH �� PRO.JTCT ELICIi3[LITY f\pplication No. I. Please list down the aiddresses and Iegs�l descriptions of the �roject and other properties yo�r orgi�nization owns in rort Worth. Attach metes and bounds description iP no address or legnl descripti��n is availabie. Attach a map sliowing the location of the project. 'C:�bic 1 I' 1'ro �er Ownersh fldd ress �o'ect Location f - �,. �T,., �n/ttEEt,�2 Sy- -7 Zip Code G ll Subdivision Nf�me Otl�er properties owned in the City of Fort Worth - continne on a `T i � 3 G�l� 'G' � �..Ei2 .rsT "i /n l!! /.� ii .+crY) n� s... /►'1 �- 3aS / ii �L Lot No, Block No. � �1/d�l,� sheet �nd attach if necessary. t-' �Il%c.1 � __� 6UON� � 0 2. For each property listed in Table 1, please cl�eck the bozes below to indicate if• n�o,vE • tliere are taxes past due; or • there are City liens; or • You (tneaning the applicant, developer, associates, agents, principats) have been subject to a Buildin� Stcu�dards Commission's Order of Demolition where the property was demolished within the last five years. �rani� 2 A d d ress Taxes and Ci Liens Property Taxes Due ���u�e sT cvH E� � E2 ST w NE�K- �S� wt+���Ett.. ST ��1.�eZ ST ( Ple�se attach additional sheets of paper as needed.) vf'AN 27�-J �M1Ay Weed Licns �tbdl � City Liens on Property Board-up/Open Demolition Paving Stucture Liens Liens Liens Order of Demolition If there are taxes due or liens against any property in the City of Fort Worth you ma not be eligible for NEZ incentives Revised July 12, 201 1 � �. �_ � � FGRT WORTH �� 3. Oo you own other properties under other names? ❑ Yes [� No If Yes, plcase specify � %a �. Docs tt�e proposed project conform witl� City of Fort Worth 'Loning'? If no, what steps are being taken to insure compliance? 5. Pr�ject � � � Q Type: Singfe Family Muiti- Family Commercial fndustrial ❑ Owner Occupied ❑ 2ental Properry Application No. [:�Yes ❑ No ❑ ❑ Conununity I�acilities Mixed-Use G. Please describe the proposed residential or commerci�l project: A)� f2CgiD6N�7-+ r} L 7. tf your prc�ject is a commercial, industrial, or mixed-use project, please describe the types of businesses ths�t are being proposed: /J� 3. Is this a new construction or rehab project? [�,New Construction ❑ Rehab 9. How much is the tota! development cost of your project? �'� �oob 10. Wiil the eligible rehabilitation work* equai to at least 30% of the Tarrant Appraisal District (TAD) assessed value of the structure during the year rehabilitation occurs? [� Yes ❑ No *Eligible rehabilitation includes only physical improvements to real property. It does NOT include: Front yard tencing consisting of chain-link or solid material construction; personal property such as furniture, appliances, equipment, and/or supplies. Total eligible rehabilitation costs shall equal to or exceed 30% of the TAD appraised value of the structure dtiring the year rehabilitation occurs. 1l. How much is the total square footage of your project? �d�O � * If applying for a tax a6atement. please answer questions 12 =`16. If not skip;to pa square feet 12. For a sinele-familv homeownershin mixed-use or multi familv develonment nro�ect, ptease fill out the nu►nber of res�dential un�ts based on mcome range of owners or renters in the following tab(e. ST ble 3,. Number of Residential Units and income I �' � Npitibe� Income>Ran e� ; �� . �� � � ' ��� �� > 80% of AMFI** + At or below 80% of AMFI of Owners or Renters Total Units , . . . k� �,�viri: Hrea ivteaian t�amily Income. Please see attachment for income and housing payment guidelines. 13. For a multifamilv nroiect to be qualified for tax abatement, at least 20% of total units shall be ;iffordable to families at or below SO% of AIVIFI. Check the box if you are requesting a waiver of this requirement. ❑ l�. For a cnmmn��iol :.,.�,.�f..:,.� .._ ------- ., ,. .-• - residential s ,.,,,,�,.,,.,. � square feet Revised luly 12, 2011 square feet 3 indicate square footage of non- square feet � � - _. � ., ,_ _ _. � _. .� _$ � � _ � � y:.� �:.� ��,� -,.. , .�, • FORT,,,�WORTH Applicalion No. I 15. How much will be your Capital Investment*** on the project? Piease use tl�e following table to �rovide u the detAiis and umount of your Capita) Investment (Attached additional sheets if necessarv). 4 Itemized Bud It� **'"Capital Investment includes only real property �mpravements such as new facil�qes and structures, site improvements, facil� expansion, and f'acility modernization. Capital (nvestment DOES NOT include land acquisition costs and/or any existing irnprovements, or personal property (such as muchinery, equiprnent, and/or supplies ar inventory). j.Cf. For a commercial, industrial. communitv facilitv or mixed u4e nroiect, how many employees wilt the pro�ect generute? �,�.?: For a mixed-ase nroiect, �lcase indicate the percentage of :�ll uses in the project in the followin� table. Table 5 Percen 'T Residential Office Lating Entertainment Retail sales Service T� of Uses in a Mixed-Use ( III. INCENTIVES - What incentives are you applying for? Municipai Pronertv Tax Abatements Must provide Final Plat Cabinet an�! Slide for Tax Abatement � 5 years 0 More than 5�years (�Residentia) owner occupied ❑Residentia( Rental Property Devetopment Fee Waivers � j'/ . ►� ��/ ►� r�i Cabinet Slide ❑Apartments (5 plus units) ❑ Commercia) All building permit related fees (including Plans Review and Inspections) Plat app(ication fee (including concept plan, preliminary plat, tinal plat, short form replat) Zoning application fee [� Board of �djustment 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 waterJwastewater impact fee waiver amount for a commercial, industrial, mixed- use, or community facility development project is equivalent to the wateNwastewater impact fee of two 6-inch meters � Water (Meter Size _) (No. of ineters � �Transportation Release of Citv Liens (� Weed liens �Paving liens [�'Board up/open structure liens [�Demolition (iens Revised July 12, 301 I of the Project d FORT,,,�TH s Application No. [II. ACKNOWLEDGMENTS [ hereby ceMify that the information provided is true and accurate to the best of my knowledge. I hereby acknowledge that t have reeeived a eopy of NEZ Basic Incentives, which governs the gi•anting of tax abatements, fec �vaivers and release of City liens, and that any VIOLATION of the terms of the NEZ Basic Incentives or Ni1SREPRESENTA"i'ION shal! constitute grounds for rejection of an application or tennination of incentives at the discretion of the City. [ understlnd that the approval of fee waivers and other incentives shall not be deemed to be approval of any aspect of the project. I understand that I am responsible in obtaining required permits and inspections from the City and in ensuring the projeet is located in the correct zonin� district. ( understand that my application will not be processed if it is incomplete. I agree to provide any additional information f'or determining eligibility as requested by the City. (PRINTED OR TYPED NAME) (AUTHORIZED G-o' ATURE) Apptication No.��r-�j _ j��bfiich NE"L? Applic io ompleted Date (Received Date): Type? SF ❑ Multifamily ❑ Commercial Constr ction completion date? ❑ Before NEZ TAD Account No. Meet affordabitity test? Rehab at or higher than 30%? Tax current on this property? City liens on this property? • Weed liens • Board-up/open structure liens • Demolition liens • Paving liens • Orderofdemolition Certified7 �Y s ❑ No ��� [f not certified, reason F Office Use Only �� �%Q,r�1� Council District � Conform with Zoning? ❑ Yes []No ❑ Industrial ❑ Community facilities ❑ Mixed-Use ���A-�erNEZ Ownership/SiteControl �es No � Consistent with the NEZ plan? S es ❑ No viinimum Capital Investment? es es ❑ No Meet mixed-use definition? es es ❑ No Ta�c current on other properties? �es �! • i: + ❑ Yes ❑ Yes ❑ Ye' ❑ Ye: ❑ Ye: Certified by Referred to: ❑Economic Development ❑Housing Ctty liens on other properties? • Weed liens • Board-uplopen structure liens • Demolition liens • Paving liens • Order of demolition Date certification issued? ❑Development ❑Water ❑ Yes ❑ Yes ❑ Yes ❑ Yes ❑ Yes �—r7� ❑Code ❑TPW ❑ No ❑ No ❑ No ❑ No � _ � Revised July l2, 201 I 5 � _ ..,._ �„ . . � :�� � °< a _ .v� � . u._: __��,.. �� Electronic version of this form is available on our �vebsite. For more information on the NEZ Program, please visit our web site at www,fortworthgov.org/planninganddevelopment Exhibit "4" Single Family Residence 4 Bedrooms 3 Bathrooms Dining Room Living Room Fireplace Laundry Room Sun Room w/Breakfast Nook 2 Car Garage Covered Back Patio Approximately 3,060 square feet Project Description � � ' Of�cI�I Site of khe CiEyr aP ��rE Uilo�tl�t TeXas R � '� ;1' �, -i. COUN�IL:ACTION; Appraved on 4/�f 6/2Q13 ± DATE: CODE: 4/16/2013 .�l REFERENCE NO.. TYPE: C-26203 NON- CONSENT LOG NAME: PUBLIC HEARING: 17NEZ4009WHEELER NO SUBJECT: Authorize Execution of a Five-Year Tax Abatement Agreement with Cesar Velazco for Property Located at 4009 Wheeler Street in the Riverside Neighborhood Empowerment Zone (COUNCIL DISTRICT 4) _ --� _ - - - -- RECOMMENDATION: It is recommended that the City Council authorize the execution of a five-year Tax Abatement Agreement with Cesar Velazco for the property at 4009 Wheeler Street in the Riverside Neighborhood Empowerment Zone, in accordance with the Neighborhood Empowerment Zone Tax Abatement Policy and Basic Incentives. DISCUSSION: Cesar Velazco (Property Owner) is the owner of the property described as Lot B, Gilstrap Addition, an Addition to the City of Fort Worth, Tarrant County, Texas, according to the plat recorded in Book 388-J, Page 533, of the Plat Records of Tarrant County, Texas, at 4009 Wheeler Street, Fort Worth, Texas. The property is located within the Riverside Neighborhood Empowerment Zone (NEZ). The Property Owner plans to invest an estimated amount of $88,000.00 to construct an approximately 3,060 square foot single family residence (Project). The Project will be used as the primary residence of the Owner. The Housing and Economic Development Department reviewed the application and certified that the Property Owner and Project met the eligibility criteria to receive a NEZ Municipal Properry Tax Abatement. The NEZ Basic Incentives includes a five-year Municipal Property Tax Abatement on the increased value of improvements to the qualified owner of any new construction or rehabilitation �Nithin the NEZ. Upon execution of the Agreement, 100 percent of the assessed value of the improvements used for calculating municipal property tax will be frozen for a period of five years starting January 2014 at the estimated pre-improvement value, as defined by the Tarrant Appraisal District (TAD), for the property as follows: Pre-Improvement TAD Value of Improvements $ 0.00 Pre-Improvement Estimated Value of Land 7 696.00 Total Pre-Improvement Estimated Value $7,696.00 The municipal property tax on the improved value of Project after construction is estimated in the amount of $752.40 per year for a total amount of $3,762.00 over the five-year period. However, this estimate may differ from the actual tax abatement value, which will be calculated based on the Tarrant Appraisal District appraised value of the property. In the event of a sale of this property, the NEZ Tax Abatement Agreement may be assigned to a new owner's first mortgagee or a new homeowner as their primary residence. All other assignments must be approved by the City Council. This properly is located in COUNCIL DISTRICT 4. Page 1 of 2 FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that this action will not increase the total appropriations on City funds. TO Fund/AccountlCenters FROM Fund/AccounUCenters Submitted for City Manaqer's Office b� Oriqinatinq Department Head: Additionai Information Contact: ATTACHMENTS 4009 Wheeler Elevation.pdf 4009 Wheeler Map.pdf Fernando Costa (6122) Jay Chapa (5804) Cynthia Garcia (8187) Sarah Odle (7316) Page 2 of 2