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HomeMy WebLinkAboutContract 55425FORT WORTH ® CITY SECRETAR) w,·JTR A.CT NO . _6:H95 NEIGHBORHOOD EMPOWERMENT ZONE TAXABATEMENTAGREEMENT New construction single-family-owner 5322 Pinson Street This TAX ABATEMENT AGREEMENT ("Agreement") is entered into b y and betwe en the CITY OF FORT WORTH, TEXAS (the "City"), a home rule municipal corporation organized und~1 the laws of the State of Texas and acting by and through David Cooke , its duly authorized City Manager, · accordance with the authority granted under Chapter 378 of the Texas Local Government Code , and Cande ario Olmos and Yadira Rodriguez, owner of property located 5322 Pinson Street, Lots 1 & 2, Bloc 9, Sunrise Addition, an Addition to the City of Fort Worth , Tarrant County, Texas, according to the Plat ecorded in Volume 964, Page 437 , of the Plat Records of Tarrant County, Texas. The City Council of the City of Fort Worth ("City Council") hereby finds and the City and Owner hereby agree that the following statements are true and correct and constitute the basis upon w ch the City and Owner have entered into this Agreement: A. On January 29, 2019 the Fort Worth City Council adopted Ordinance No . 23552 (the "Ordinance") establishing "Neighborhood Empowerment Reinvestment Zones No .IR throu ~h 6R" City of Fort Worth, Texas (the "Zones") and adopted Resolution No . 5042 establishing "Designation of the Neighborhood Empowerment Zone Areas One through Six" (the "NEZ"). B. Owner owns certain real property located entirely within Zone 6R and that is moref articularly described in Exhibit "1 ", attached hereto and hereby made a part of this Agreement for all p oses (the "Premises"). C. Owner or its assigns plan to construct the Required Improvements, as defined in Se tion 1.1 of this Agreement, on the Premises (the "Project"). D. On March 12, 2020, Owner submitted an application for tax abatement to the City concerning the Premises (the "Application"), attached hereto as Exhibit "2" and hereby made a part of this Agreement for all purposes. E. The contemplated use of the Premises, the Required Improvements and the te s of this Agreement are consistent with encouraging development of the Zone in accordance with the p ,oses for its creation and are in compliance with the NEZ Incentives, the Ordinance and other applicable laws , rules and regulations . F. Written notice that the City intends to enter into this Agreement, along with a opy of this Agreement, has been furnished in the manner prescribed by the Code to the presiding officers of thb governing bodies of each of the taxing units in which the Premises is located . ·1 OFFICIAL R' CORD! Page I NEZ Tax Abatement Agreement -Candelario Olmos and Yadira Rodri gu ez 5322 Pin so n Street M&C 21-0003 Aooroved : Februarv 23. 2021 CITY SECR TARV ! FT. WORT , TK I NOW, THEREFORE, the City and Owner, for and in consideration of the terms and colnditions set forth herein, do hereby contract, covenant and agree as follows: 1. OWNER'S COVENANTS. 2. 1.1. Real Property Improvements. Owner shall construct, or cause to be constructed, on and within the Prem ses certain improvements consisting of a single-family residence, of approximately 3,822 square fee in size and built to the specifications listed in Exhibit "3", (collectively the "Required Improveme ts"). 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 ection 4.1 , provided that the conditions in the first sentence of this Section 1.1 are met and t e Required Improvements are used for the purposes and in the manner described in Section 1.3. 1.2. Completion Date of Required Improvements. Owner certifies that the Required Improvements will be completed within two ye s from the date of Council approval. The abatement will automatically terminate two years after Coun il approval if a building permit has not been pulled and a foundation has not been poured, unless delajred because of force majeure, in which case the two years shall be extended by the number of days cof prising the specific force majeure. For purposes of this Agreement, force majeure shall mean an e1 ent beyond Owner's reasonable control as determined by the City of Fort Worth in its sole discretion, r hich shall not be unreasonably withheld, including, without limitation, delays caused by adverse weafher, delays in receipt of any required permits or approvals from any governmental authority, acts of G pd , or fires. Force majeure shall not include construction delays caused due to purely financial matt s, such as , without limitation, delays in the obtaining of adequate financing . 1.3. Use of Premises. Owner covenants that the Required Improvements shall be constructed and c , ntinuously used as the primary residence of the Home Owner in accordance with the NEZ Inc ntives. In addition, Owner covenants that throughout the Term, the Required Improvements shall be aintained for the purposes set forth in this Agreement. ABATEMENT AMOUNTS, TERMS AND CONDITIONS. Subject to and in accordance with this Agreement, the City hereby grants to Owner a r al property tax abatement of City of Fort Worth-imposed taxes on the Premises for the Required Impro I ements, as specifically provided in this Section 2 ("Abatement"). Abatement does not include taxes from , ther taxing entities . Page2 2.1. Amount of Abatement. The actual amount of the Abatement granted under this Agreement shall be bas d upon the increase in value of the Premises due to the Required Improvements, over its value as etermined by Tarrant Appraisal District in February 2021 , and this amount is $0 .00. NEZ Tax Abatement Agreement -Candelario Olmos and Yadira Rodriguez 5322 Pinson Street M&C 21-0003 Aooroved : Februarv 23. 202 1 If the square footage requirement of the Required Improvements are less than as I rovided in Section 1.1 of this Agreement, Owner shall not be eligible to receive any Abatemen under this Agreement. 2.2 Increase in Value. The Abatement shall be 100% of the increase in value from the construction oft I e Required Improvements up to a maximum of $218,583.00 and shall apply only to taxes on the increase in value of the Premises due to construction of the Required Improvements. In other word , by way of example only, if the increase in value of the Required Improvements over its value in Ja uary 2021, in a given year is $218,000.00, Owner's Abatement for that tax year shall be capped an ; calculated as if the appraised value of the Required Improvements for that year had only been $ 18 ,5 83.00. The Abatement shall not apply to taxes on the land, nor shall the abatement apply to mine al interests. 2.3. Term of Abatement. The term of the Abatement ( "Term") shall begin on January 1 of the year fo lowing the calendar year in which the Required Improvement is completed ("Beginning Date") d, unless sooner terminated as herein provided, shall end on December 31 immediately preceding t ! e fifth (5 th ) 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 assess ents of the Premises and/or improvements thereon. 2.5. Abatement Application Fee. The City acknowledges receipt from Owner of the required Application fee of $1 0.00. 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. Page 3 3.1. Inspection of Premises. Between the execution date of this Agreement and the last day of the Term, at any ime 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 o der for the City to inspect the Premises and evaluate the Required Improvements to ensure complia.Ilj e with the terms and conditions of this Agreement. Owner shall cooperate fully with the City durinlg any such inspection and/or evaluation. 3.2. Certification. Owner shall certify annually to the City that it is in compliance with each applic I le term of this Agreement. The City shall have the right to audit at the City's expense the Required ;;provement with respects to the specifications listed in Exhibit "3 ". Owner must provide docume tation that Owner is using the Required Improvements as its primary residence (collectively, the "Rfecords") at any time during the Compliance Auditing Term in order to determine complianc9 with this Agreement. Owner shall make all applicable Records available to the City on the Pre ises or at NEZ Tax Abatement Agreement -Candelario Olmos and Yadira Rodriguez 5322 Pinson Street M&C 21-0003 Aooroved: Februarv 23. 202 1 another location in the City following reasonable advance notice by the City and sh Ill 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 A diting Term and at any other time if requested by the City, Owner shall provide information and do pumentation for the previous year that addresses Owner 's compliance with each of the terms and cond 'tions of this Agreement for that calendar year. Owner must also provide documentation of compliance to Tarrant Appraisal Di trict (TAD) each year of the abatement by filling out and returning Tax Abatement Form 50-116 fr m the TAD website no later than April 30 th for each year Owner is requesting tax abatement. Failure to provide all information within the control of Owner required by is Section 3.3 shall constitute an Event of Default, as defmed in Section 4.1. 3.4 Determination of Compliance. On or before August 1 of each year during the Compliance Auditing Term, the Cit shall make a decision and rule on the actual annual percentage of Abatement available to Owner fort , e following year of the Term and shall notify Owner of such decision and ruling. The actual perce tage of the Abatement granted for a given year of the Term is therefore based upon Owner's compli ce with the terms and conditions of this Agreement during the previous year of the Compliance Audi ing Term. 4. EVENTS OF DEFAULT. Page4 4.1. Defined. Unless otherwise specified herein, Owner shall be in default of this Agreement f (i) Owner fails to construct the Required Improvements as defined in Section 1.1.; (ii) ad valorem~al property taxes with respect to the Premises or the Required Improvements, or its ad valorem taxes ith respect to the tangible personal property located on the Premises, become delinquent and O er does not timely and properly follow the legal procedures for protest and/or contest of any such ~..;~~rem real property or tangible personal property taxes; (iii) OWNER DOES NOT USE THE P~~;,..a;;SES AS PRIMARY RESIDENCE ONCE THE ABATEMENT BEGINS ; or (iv) OWNER DIOES NOT COMPLY WITH CHAPTER 7 AND APPENDIX B OF THE CODE OF ORD IN CES 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 occurr d, the City shall provide a written notice to Owner that describes the nature of the Event of Default. 1 wner shall have sixty (60) calendar days from the date ofreceipt of this written notice to fully cure o~_have cured the Event of Default. If Owner reasonably believes that Owner will require additional 1me 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 Ownerl reasonably believes that Owner will require more than ninety (90) days to cure the Event of Default, a er advising NEZ Tax Abatement Agreement -Candelario Olmos and Yadira Rodriguez 5322 Pinson Street M&C 21-0003 Aooroved : Februarv 23. 2021 5. the City Council in an open meeting of Owner 's efforts and intent to cure, such additional ime, if any, as may be offered by the City Council in its sole discretion. 4.3. Termination for Event of Default and Payment of Liquidated Damaees. If an Event of Default which is defined in Section 4.1 has not been cured within th time frame specifically allowed under Section 4.2, the City shall have the right to terminate thisj 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 vi inity of the Premises; (ii) require unplanned and expensive additional administrative oversight and · 1 volvement by the City; and (iii) otherwise harm the City, and Owner agrees that the amounts of ac al damages therefrom are speculative in nature and will be difficult or impossible to ascertain. The~efore, upon termination of this Agreement for any Event of Default, Owner shall pay the City, af liquidated damages; all taxes that were abated in accordance with this Agreement for each year whf n 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 approximati~n 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. i his amount may be recovered by the City through adjustments made to Owner 's ad valorem property t pc appraisal by the appraisal district that has jurisdiction over the Premises. Otherwise, this amount sr,all 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 with!f sixty ( 60) days following the effective date of termination of this Agreement, Owner shall also be hable for all penalties and interest on any outstanding amount at the statutory rate for delinquerlt taxes, as determined by the Code at the time of the payment of such penalties and interest ( curren 1ly, 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 Pre · ses or the anticipated Required Improvements are no longer appropriate or feasible , or that a higher r better use is preferable, the City and Owner may terminate this Agreement in a written format that · signed by both parties. In this event, (i) if the Term has commenced, the Term shall expire as oft e effective date of the termination of this Agreement; (ii) there shall be no recapture of any taxes previously abated ; and (iii) neither party shall have any further rights or obligations hereunder. 4.5 Sexually oriented business & Liquor Stores or Packaee Stores. a . Owner understands and agrees that the City has the right to terminate this a eement if the Required Improvements contains or will contain a sexually oriented business. J b. Owner understands and agrees that the City has the right to terminate this a~reement as determined in City's sole discretion if the Required Improvements contains or will ontain a liquor store or package store. EFFECT OF SALE OF PREMISES. Except for an assignment to Owner's first mortgagee or to a homebuyer who will use t e Required Improvements as its primary residence or the homeowner's mortgagee which City Council hereb agrees to , the Abatement granted hereunder shall vest only in Owner; however if Owner sells the Premises d Required Improvements , this Abatement cannot be assigned to a new owner of all or any portion of the Pre · ses and/or Page 5 NEZ Tax Abatement Agreement -Candelario Olmos and Yadira Rodriguez 5322 Pinson Street M&C 21-0003 Aooroved : Februarv 23 . 2021 Required Improvements without the prior consent of the City Council, which consent s all not be unreasonably withheld provided that (i) the City Council finds that the proposed assignee is financially capable of meeting the terms and conditions of this Agreement and (ii) the proposed purchas <e r agrees in writing to assume all terms and conditions of Owner under this Agreement. Owner may not otherse assign, lease or convey any of its rights under this Agreement. Any attempted assignment without the Ci y Council's prior consent shall constitute grounds for termination of this Agreement and the Abatement grante 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 th 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 entif:', with the written consent of City Council, Owner shall have no further duty or obligation under this 1 greement. IN NO EVENT SHALL THE TERM OF THIS AGREEMENT BE EXTENDED IN THE J VENT OF A SALE OR ASSIGNMENT. THE FAILURE OF OWNER TO SEND THE CITY NOTIFICATION OF THE SAL OF THE REQUIRED IMPROVEMENTS AND EXECUTION OF THE ASSIGNMENT F THIS AGREEMENT WITH THE NEW OWNER WITHIN 60 DAYS OF THE TRAN ~FER OF OWNERSHIP OF THE REQUIRED IMPROVEMENTS SHALL RESULT IN THE AUTOMATIC TERMINATION OF THIS AGREEMENT. THE NOTICE AND EXECUTED ASSI1 NMENT 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 £ llowing , 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 200 Texas Street Fort Worth, Texas 76102 and Neighborhood Services Department Attn: Director 200 Texas Street Fort Worth, Texas 76102 7. MISCELLANEOUS. 7.1. Bonds Owner: Candelario Olmos and Yadira Rodriguez 5459 East Roselane Street Fort Worth, Texas 76112 The Required Improvements will not be financed by tax increment bonds. This A eement is subject to the rights of holders of outstanding bonds of the City. Page 6 NEZ Tax Abatement Agreement -Candelario Olmos and Yadira Rodriguez 5322 Pinson Street M&C 21-0003 Aooroved: F ebruarv 23. 2021 Page 7 7.2. Conflicts of Interest. Neither the Premises nor any of the Required Improvements covered by this A eement are owned or leased by any member of the City Council, any member of the City Plannin ! 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 o7dinances or regulations, and this Agreement, such ordinances or regulations shall control. In the 9ve nt of any conflict between the body of this Agreement and Exhibit "3", the body of this Agreements , all control. 7.4. Future Application. A portion or all of the Premises and/or Required Improvements may be eligible r complete or partial exemption from ad valorem taxes as a result of existing law or future legisl r tion. This Agreement shall not be construed as evidence that such exemptions do not apply to t e Premises and/or Required Improvements. 7.5. City Council Authorization. This Agreement was authorized by the City Council through approval of Mayor • d Council Communication No. 21-0003 on August 4, 2020, which, among other things , authori ed the City Manager to execute this Agreement on behalf of the City. 7.6. Estoppel Certificate. Any party hereto may request an estoppel certificate from another party hereto s long as the certificate is requested in connection with a bona fide business purpose. The certificate, · requested , will be addressed to the Owner, and shall include, but not necessarily be limited to , sta ments that thi s Agreement is in full force and effect without default ( or if an Event of Default exist , the nature of the Event of Default and curative action taken and/or necessary to effect a cure), the re aining term of this Agreement, the levels and remaining term of the Abatement in effect, and such o er matters reasonably requested by the party or parties to receive the certificates. 7.7. Owner Standing. Owner shall be deemed a proper and necessary party in any litigation qu 9s tioning or challenging the validity of this Agreement or any of the underlying laws , ordinances, re olutions or City Council actions authorizing this Agreement and Owner shall be entitled to intervene in any such litigation. 7.8. Venue and Jurisdiction. This Agreement shall be construed in accordance with the laws of the State o Texas and applicable ordinances, rules , regulations or policies of the City. Venue for any actio under this Agreement shall lie in the State District Court of Tarrant County, Texas. This A eement is performable in Tarrant County, Texas. N EZ Tax Abatement Agreement -Candelario Olmos and Yadira Rodriguez 5322 Pinso n Street M&C 21-0003 Aooroved: Februarv 23. 2021 P age 8 7.9. Severability. If any provision of this Agreement is held to be invalid , illegal or unenforceable, e va lidity, legalit y and enforceability of the remaining provisions shall not in any way be affected o impaired. 7.10 Headings Not Controlling. Headings and titles used in this Agreement are for reference purposes only and hall not be deemed a part of this Agreement. 7.11. Entirety of Agreement. This Agreement, including any ex hibits attached hereto and any documents i corporated herein by reference , contains the entire understanding and agreement between the City d Owner , their assigns and successors in interest, as to the matters contained herein. ~y prior or contemporaneous oral or written agreement is hereby declared null and void to the exten in conflict with any provision of this Agreement. This Agreement shall not be amended unless xecuted in writing by both parties and approved by the City Council. This Agreement may be xecuted in multiple counterparts, each of which shall be considered an original , but all of which sha 1 constitute one instrument. NEZ Tax Abatement Agreement -Candelario Olmos and Yadira Rodri guez 5322 Pinson Street M&C 2 I -0003 Aooroved: F ebruarv 23. 202 1 CITY OF FORT WORTH: OWNER: By: ~~CJ By: CcvnJPL~ Fernando Costa Assistant City Manager ATTEST: B Melinda Ramos Sr. Assistant City Attorney M & C: 21-0003 Date Approved: February 23, 2021 Page 9 Candelario Olmos NEZ Tax Abatement Agreement -Cande lario Olmos and Yadira Rodriguez 5322 Pinson Street M&C 21-0003 Aooroved: Februarv 23. 2021 "j OFFICIAL RECOR~• cnv SECRETAR1 FT. WORTH, T~ STATE OF TEXAS § COUNTY OFARRANT § 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 t me to be the person and officer whose name is subscribed to the foregoing instrument, and ackno ledged to me that the same was the act of the said CITY OF FORT WORTH, TEXAS, a m ·cipal corporation, that he was duly authorized to perform the same by appropriate resolution oft e City Council of the City of Fort Worth and that he executed the same as the act of the said City for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this /JJ'ray of ~021. -~ ,,,:;.:ii,,, SELENA ALA otary Public in and for {f-::X:,{~ Notary Public, State of Texas the State of Texas ;~· .. ~ ... ~~ Comm . Expires 03-31 -2024 -:.,;;t,:q\;~$_:-Notary ID 132422528 STATE OF TEXAS § COUNTY OFARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Can , elario Olmos, known to me to be the person whose name is subscribed to the foregoing instrum t, and acknowledged to me that he executed the same for the purposes and consideration therein ex ressed, in the capacity therein stated. N UNDER MY HAND AND SEAL OF OFFICE i:, ~ ----"e:~~1£64,~'-'7.fr--~-----:' 2 21. STATE OF TEXAS § COUNTY OFARRANT § SARAH J ODLE Notary ID #6215320 My Commission Expires November 8, 2023 BEFORE ME, the undersigned authority, on this day personally appeared , adira Rodriguez , known to me to be the person whose name is subscribed to the foregoing instrum nt, and acknowledged to me that she executed the same for the purposes and consideration herein expressed, in the capacity therein stated. G~ UNDER MY HAND AND SEAL OF OFFICE fhi ~f:;;;; ,=14.ota4~ , 2021. Page 10 NEZ Tax Abatement Agreement -Candelario Olmos and Yadira Rodriguez 5322 Pinson Street M&C 21-0003 Aooroved: Februarv 23 . 2021 SARAH J ODLE Notary ID #6215320 My Commissio, .. n.:;E~xp~ir!:es~H ---~, November a-; j ~-.-.__,._.,.~~l RECOR D. CUlY SIE RETAmf FT. WO TH, TX Exhibit 1: Exhibit 2: Exhibit 3: Page 11 Property Description Application: (NEZ) Incentives and Tax Abatement Required Improvements description NEZ Tax Abatement Agreement -Candelario Olmos and Yadira Rodriguez 5322 Pinson Street M&C 21-0003 Aooroved: Februarv 23. 2021 Exhibit 1 Property Description 5322 Pinson Street, Lots 1 & 2 , Block 9, Sunrise Addition, an Addition to the City of Fort Worth, T ant County, Texas, according to the Plat recorded in Volume 964 , Page 437 , of the Plat Records of Tarrant Coun 1y , Texas . FORT WORTH . A I. t· # NZ20-01050 pp 1ca 1011 ____ _ City of Fort Worth Neighborhood Empowennent Zone (NEZ) Application for Incentives Property Owner/Developer Address: Phone: Contact: ( If different) Phone: A licant Information Last First 545'1 G. f?rue NEZ certifications are project and owner specific. Please describe your project: ___________ ----t- . NEWSFR Project Type ~ □ □ □ □ □ Single Family Multi-Family Commercial Industrial Community Facilities Mixed-Use *Please be advised if the project address is zo11ed as a designated historical property (HC) and your project consists of 11ew construction or exterior reno•·ations, approval of your project is required prior to NEZ application submillal. Written approval O l>m tl,e Historic and Cultural Landmarks Commission (HCLC) m11st be attached to the NEZ application. For questions or furthe' infonnation concl{ning historic projects, please contact the HCLC at (811) 392-8000* Project Address: 5304 v: .. ,.s,u.l ,<;'l-J:"r. 1J11,-.k r 1lo \ 0 Str et Address IN\ r i Je ru:Jd,'t · otv Legal Description: New Construction/ Addition: YES ~ Block NO □ L-o-t- Remodel / Rehab: Addition YES □ Total New Sq. Ft. 5 5 :, 1 Total Development Cost: -=-i"-=-------- For a single family project, will the NEZ certified property be occupied by the property owner as a primary residence? YES ~ NO □ If you selected No, please specify if I sold to a homeowner as a primary residence or used as re tat property. ; \ ,\I If your project is a Commercial or Mixed Use project, please list all specific uses that are being proposed: . Incentives Do you wish to apply for a Municipal Property Tax abatement for this project? YES NO ~□ If the above answer is yes. please contact the City of Fort Worth Ne ighborhood Services Department at (817) 392-7316 or vt sit http ·/,!ort wort htexa .griv/neighborhood<;INEZ) for additional infonnation . Tax Abatement~ are processed ofter NEZ pr 1ect certification and must go berore the City Council for a vote. House Bill 3143 took effect on September 1, 2019, which requires at least 30 days advance notice be given or the tax abatemenL Due to compliance with HB 3143, the minimum t,me to process a tax abatement to be on the City Council agenda for vote is 12 to 14 week.~ after the date of certification. J A licontf re uestin IJJX abatemtnl ma not submit or a buildin ennit until the abatement has been a roi•ed b the Ci Council and the applicant /,as siF:_ned a cnnlract. Exhibit 2 Appl icarion# N 1.~D DI 05D City of Fort Worth . \ Neighborhood Emp werment Zone (NEZ) Ap pli ca l-ion for Jnc enllv e. . ~NO ~o You Wish to apply for n r~l easc of NEZ Policy eligible City liens? . . . ~ D ecd, Puving, Demolition and Board Up / Open Stru cture li ens mny be released fo r qu ahf yro g pr0J ec t5 . YES Will n ~ming hnnge appUcatioii be n~essilry for tlils projeel? D '' 11 1 c. " ~ s l Fa, ·1 Pirs id-the C~trent Zo. ning: q -') . Bp. osed s : 3W { t1?) l-Wll Y SJgnnture of Zoning Staff: C ~ Dat e: JQ_~ Acknowledgements PLEASE INITIAL NEXT TO EACH STATEMENT ~ l und ers tand that my application will not be prOCC $s ed if it.is incompl ete.! ngree to provide un y additional info . al!o n for determining eligi_bi lity a re que sted by lh e City . lf the additional informntion i. not submiued within 30 day:, Lhe np p cii tr 0 Will be denied and application fees paid will not be reimbursed . ~ J hereby ce rtify lhat the infomiali on pro vided is tru e and accunlle to th e bes t of my knowledge . tJJ , I hereby ce rtify I.hat all do cum ent s und infommtion required by th e Applicution Submi tt al hec kli st is att nchc • ~ l hereby ncknow lc_dgc that J have re ad lh e NEZ Basic In ce nt ives and Tnx Aba temen t Poli cy, whi ch go ve rns th g , min g of ta x abatement s, fee wuivcrs und re.lea . e of Ci ty li ens, nnd that ony VIOL ATION of 111 ter ms o th NEZ Busi Jn •mi vc or MIS REPRESENTATION shall consti1u1 c gro un·cts for rcj cc 1io11 of an appli ati on or tcrmilltltion f fnccntives 01 th e di sc}1tion of the City . {!J1_ l und cr.;tun d 1J10l the, pprovlil of fee wilive rs and other in centives ~hull no1 be dee med to be approval of :i ny a. Jee ! of th e project. I undcr srand that I am rcs pon i!,lc fo r obto inin g requi red permit s and inspccLio ns fr om th it}' nnd in cns u ng tl ie proj ect i • loca ted in lh e corrccr zoning distri ct. C.O, l understand tJ1at if th ere are -tax es du e or li ens ngninsr un y pro perty J own in th e ily of fort Wonh l may 01 be eligibl e for NEZ incentives. L/) I hereby certify that th e projccl plat). submit\~ with thi.-. nppli <.:a tiqn me et th e NEZ di;si_gn.guidclin e req uirem ent s ,is li sted below or meet Strategi c Plan g11ide/i11e,f (or /h e Bm ]'l1i{I/Ma.wi1 Height .1·1 Oakland Cornets and Stop Si:t arhas flS 0111/i11M mi th e NFl ivebpage. I understund tlrnt if the project plans do 1101 meet these _design n;quircmenLc;, ~I permits !viii be put on hold pending correction. If J ~hoo~e to .relinquish my NEZ certifi ca tion iosteud of meeting the design req11irc ents , payment for all f~cs whlve:<l by the City up lf;>Jhat point w)JI -~ du e immec,iat~ly and the building pennit wilJ not be is sue until payni enl is made . . a, No metal ~uildiogs ~Xc<lJJI for indostrial project ~. b.All new constnic~i>ri projects must co11tain 70% masonry product c. Exceptions to the ma~rtry proou.ctwill be mri~e nt ·lhe City.'s dis J:retion for desi gn di strict overlay s (where uppli able ) _and npproved piano~ de\'elopment projects. · [ ~.tompli?.Jlce \\~ih" · NEZ , desjgp :81.!ideiin~s for · C~~ncil adopted NEZ Su:ategic Plans (Benyhlll/Ma.son H . ights; Oakland Comers and Stoi>:S~~) is required for ·~ertifi<;ntio~. · c.-Aunchcd gllf!)gcs for ncw.singleJamfly homes jru~y.no1.ex1end more th(ln 4 feet pa_sl'~e ftont building woU. CJ!J,1 understand that J mu .s j p:iY. :an_;ai;~ooi ~!~cl .f.ce.$ lit the. time i)(_project ilppli,@tj~n _anc!f9r ,.pe~1J subl]littal jf J . psh _to su~_mi!pennits __ prior to _dete!"llliniition of NE~.oli~bility ; 'This fo•cJudcs sctting-~p.a'n ,e's"crow ~ccp'unt ,vith 1hc{Ci1y :-1 underslru!d lh?l some penri(ts ajfn~! be i~s.ued ~•!).ii~ NEZ_:eligi~ili!Y !s ~ing e,s_t~blished. 'Exrun !e: Applications that rue requesurl · Tax Abatem eri½ .. . · C...A NDf I Amo · 'I , _ Pii~te4 Name op~.r9p~rty Owner/Devel6 ·et R......., !tVif/1~ SO Appli cation# N L 0) V-I V 5 t) City of Fort Worth Nei hborhood Em owerment Zone (NEZ) A lication for Incentives Please submit your completed application in person to: City or Fort Worth Planning and Development Department 200 Texas Street, Fort Worth, Texas 76102 To apply onUne please go to: hUp:/n rt ppl y For more infonnalion on the NEZ Program Incentives, pl e;isc visit our web site at h.!.!p J/fo nwo rth texn.s .gov/neig hborh oods/NE1/ or contact our office ul (817) 392-7744 or nez. NS@fortw ort hte x ll r-1011611 9 SO For more information on Tax Abatem enL~, sec th e above web sit e or con1ac1 th e Neighborhood Services Depanmenl m (817) 392-7316. Exhibit 3 Project Description New Construction of a single family residence • 3 ,882 square feet living space • 1 Story • 4 Bedroom, 4 Bath • Dining Room • Covered Back Patio w /Fireplace • Living Room w/Fireplace • Laundry/Utility Room • Kitchen/Breakfast Nook Combination • Large Separate Pantry • Mud Room • 2 Car Garage with Storage Space • Covered Porch • Brick and Rock Exterior City of Fort Worth , Texas Mayor and Council Communication DATE: 01/12/21 LOG NAME: 19NEZ5322PINSON SUBJECT M&C FILE NUMBER: M&C 21-0003 (CD 5) Authorize Execution of a Five-Year Tax Abatement Agreement with Candelario Olmos and Yadira Rodriguez for the Con 1 struction of a Single-Family Dwelling of Approximately 3 ,882 Square Feet and Having a Cost of at Least $362 ,800.00 on Property Located at 5322 Pinson Street, in the Stop Six Sunrise Neighborhood and Within Neighborhood Empowerment Zone and Reinvestment Zone Area Six Continued from a Previous Meeting) RECOMMENDATION: It is recommended that the City Council authorize the execution of a five-year Tax Abatement Agreement with Candelario Olmo and Yadira Rodriguez for the construction of a single-family dwelling of approximately 3 ,882 square feet and having a cost of at least $362 , 1 00.00 on property located at 5322 Pinson Street , in the Stop Six Sunrise Neighborhood and within Neighborhood Empowerment Zone and Reinv stment Zone Area Six , in accordance with the Neighborhood Empowerment Zone Program Basic Incentives and Tax Abatement Policy . DISCUSSION: Candelario Olmos and Yadira Rodriguez (Property Owners) are the owners of the property described as Lots 1 & 2, Block 9 , S nrise Addition, an addition to the City of Fort Worth , according to the plat recorded in Volume 964 , Page 437 , Plat Records , Tarrant County , Texa ~, at 5322 Pinson Street , Fort Worth , Texas . The property is located within the Stop Six Sunrise neighborhood and within Neighborhood Empowe r ent Zone (NEZ) Area Six. The Property Owners plan to invest an estimated amount of $362 ,800.00 to construct a single-family residence of approximate!, 3 ,882 square feet (Project). The Project will be used as the homeowner's primary residence . The Neighborhood Services Department reviewed the application and certified that the Property Owners and Project met the e igibility criteria to receive a NEZ Municipal Property Tax Abatement. The NEZ Basic Incentives include a five-year Municipal Property Tax Abatem 1 ent on the increased value of improvements to the qualified owner of any new construction or rehabilitation within the NEZ. Residential owr er occupied tax abatements are capped at the annual median home value as reported by the National Association of Realtors for Tarrant County. This value is updated annually and is currently $218 ,583 .00 . Upon execution of the Tax Abatement Agreement (Agreement), the total assessed value of the improvements used for calculati g municipal property tax will be frozen for a period of five years starting January 2022 at the estimated pre-improvement value as defined by the Tarrant Appraisal District (TAD) in December 2020 for the property as follows : Pre-Improvement TAD Value of Improvements G Pre-Improvement Estimated Value of Land $40 ,000.00 Total Pre-Improvement Estimated Value $40,000.00 The municipal property tax on the improved value of the Project after construction using the capped value is estimated in the amount of $1 ,633 .91 per year, for a total amount of $8 ,169.55 over the five-year period . However, this estimate may differ from the actual tax abatem ,1 nt value , which will be calculated based on the TAD appraised value of the property. In the event of a sale of this property , the Agreement may be assigned to a new Property Owner's first mortgage or a new Property Owner as a primary residence . All other assignments must be approved by the City Council. This property is located in COUNCIL DISTRICT 5 . A Form 1295 is not required because : This M&C does not request approval of a contract with a business entity . FISCAL INFORMATION/ CERTIFICATION: The Director of Finance certifies that upon final approval of the Tax Abatement Agreement , a loss of an estimated $8 ,169.55 in roperty tax revenue may occur over the five year period . This reduction in revenue will be incorporated into the long term financial forecast u on the Tax Abatement being officially granted. Submitted for City Manager's Office by: Fernando Costa 6122 Originating Business Unit Head: Victor Turner 8187 Additional Information Contact: Sarah Odle 7316 City of Fort Worth -File #: M&C 21 -0003 1 Home Deta il s File #: Type: File created: On agenda: Title: Att h ac mens: t History (2) 2 records Date 2/23/2021 1/12/2021 Sign In Legis lat ion Calendar Ci t y Council Depa rt m ents ~ [.fJ: [D Sh a re~ ['1:1 RSS ] lv A l er ts l Reports M&C 21-0003 Version: 1 Name: Award of Contract -Report of CM Status: Passed 1/7/2021 In control: CITY COU CIL 2/26/2021 Final action: 2/23/2021 (CD 5) Authorize Execution of a Five-Year Tax Abatement Agreement with Cf ndelario Olmos and Yadira Rodriguez for the Construction of a Single-Family Dwellin~I of Approxim ately 3,882 Square Feet and Having a Cost of at Least $362,800.00 1 ?n Property Located at 5322 Pinson Street, in the Stop Six Sunrise Neighborhoortl and Within Neighborhood Empowerment Zone and Reinvestment Zone Area ix (Continued from a Previous Meeting) -I -ag or ounc1 .Q I ans or ounc1 .n 1 M&C 21 0003 2 NZ20 01050 M ~ C ·1 df 3 Pl f C ·1 df Te xt Group Export I Ver. Action By Action Re sult Action Detai ls Meeting Details Video - --------- - 1 CITY COUNCIL Approved Action details Meeting details ....-Yi deo 1 CITY COUNCIL Continued Action details Meeting details Not a vailable https://fortworthgov .l egistar.com/LegislationDetail.aspx?ID=4 7 45 579&GUID=412EE88E-... 3 /8/2021