HomeMy WebLinkAboutContract 55426FORT WORTH ® CITY SECRETARY
G.:), TRACT NO . .....¥,....,.._.J<,.;...~--
NEIGHBORHOOD EMPOWERMENT ZONE
TAX ABATEMENT AGREEMENT
New construction single-family-owner
922 E. Oleander Street
This TAX ABATEMENT AGREEMENT ("Agreement") is entered into by and betwee 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 David Cooke, its duly authorized City Manager, in accordance
with the authority granted under Chapter 378 of the Texas Local Government Code , and Don Fe rier, owner
of property located 922 E. Oleander Street, Lot 28A, Block 1, Graves and McDaniel's Sul:Jdivision of
Block 8, Evans South Addition, an Addition to the City of Fort Worth, Tarrant County, Texas , 1ccording to
the Map recorded in Volume 204-A, Page 99, of the Map Records of Tarrant County, Texas.
The City Council of the City of Fort Worth ("City Council") hereby finds and the City : nd Owner
hereby agree that the following statements are true and correct and constitute the basis upon whiJ. ! h the City
and Owner have entered into this Agreement:
A. On January 29, 2019 the Fort Worth City Council adopted Ordinance No. 3552 (the
"Ordinance") establishing "Neighborhood Empowerment Reinvestment Zones No.lR through 6R" City
of Fort Worth, Texas (the "Zones") and adopted Resolution No. 5042 establishing "Designa ion 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 more 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 October 29, 2020, Owner submitted an application for tax abatement t the City
concerning the Premises (the "Application"), attached hereto as Exhibit "2" and hereby made ar art 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 purppses for its
creation and are in compliance with the NEZ Incentives , the Ordinance and other applicable laws, r dinances,
rules and regulations.
1 F. Written notice that the City intends to enter into this Agreement, along with a cppy of this
Agreement, has been furnished in the manner prescribed by the Code to the presiding officers of th1 ~ governing
bodies of each of the taxing units in which the Premises is located.
Page 1
NEZ Tax Abatement Agreement -Don Ferrier
922 E . Oleander Street
M&C 21-0002 Aooroved: Februarv 23. 2021
OFFGCIAL RECORI ~
CITY SECRETARY
FT. WORTH, TX
' NOW, THEREFORE, the City and Owner, for and in consideration of the terms and c1 ditions set
forth herein, do hereby contract, covenant and agree as follows: I
1. OWNER'S COVENANTS.
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 1,707 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 t ection 4 .1,
provided that the conditions in the first sentence of this Section 1.1 are met and t 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~· 1 approval
if a building permit has not been pulled and a foundation has not been poured, unless dela ed because
of force maj eure, in which case the two years shall be extended by the number of days co prising the
specific force majeure. For purposes of this Agreement, force majeure shall mean an e nt beyond
Owner's reasonable control as determined by the City of Fort Worth in its sole discretion, f hich shall
not be unreasonably withheld, including, without limitation, delays caused by adverse wea her, delays
in receipt of any required permits or approvals from any governmental authority, acts of G d, or fires.
Force majeure shall not include construction delays caused due to purely financial matte1 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 sol to a Home
Owner to be continuously used as the primary residence of the Home Owner in accordari ce with the
N E Z Incentives. In addition, Owner covenants that throughout the Term, the Required Im , rovements
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 r al property
tax abatement of City of Fort Worth-imposed taxes on the Premises for the Required Impro t ements, as
specifically provided in this Section 2 ("Abatement"). Abatement does not include taxes from I 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 lietermined
by Tarrant Appraisal District in February 2021, and this amount is $0.00.
NEZ T ax Abatement Agreement -Don Ferrier
922 E. Oleander Street
M&C 21-000 2 Aooroved : Februarv 23. 2021
If the square footage requirement of the Required Improvements are less than as t 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 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 words by way of
example only, if the increase in value of the Required Improvements over its value in Jaryuary 2021,
in a given year is $218,000.00, Owner's Abatement for that tax year shall be capped anq calculated
as if the appraised value of the Required Improvements for that year had only been $1 18 ,583.00.
The Abatement shall not apply to taxes on the land, nor shall the abatement apply to miner[l 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 and sold to a Ho e Owner
("Beginning Date") and, unless sooner terminated as herein provided, shall end on D cember 31
immediately preceding the 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 assessm nts 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 f 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 complian e with the
terms and conditions of this Agreement. Owner shall cooperate fully with the City d · any such
inspection and/or evaluation.
3.2. Certification.
Owner shall certify annually to the City that it is in compliance with each applica 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 documeljltation that
Owner is using the Required Improvements as its primary residence (collectively, the "Rlecords") 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 Premises or at
I
NEZ Tax Abatement Agreement -Don Ferrier
922 E. Oleander Street
M&C 21-0002 Aooroved: Februarv 23. 2021
another location in the City following reasonable advance notice by the City and shal 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 Au iting Term
and at any other time if requested by the City, Owner shall provide information and doc
1
entation
for the previous year that addresses Owner's compliance with each of the terms and condi ,ions of this
Agreement for that calendar year.
Owner must also provide documentation of compliance to Tarrant Appraisal Dis ict (TAD)
each year of the abatement by filling out and returning Tax Abatement Form 50-116 fro the TAD
website no later than April 30th for each year Owner is requesting tax abatement.
Failure to provide all information within the control of Owner required by t is 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 Cit shall make
a decision and rule on the actual annual percentage of Abatement available to Owner for t~he 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 Audit ng Term.
4. EVENTS OF DEFAULT.
Page4
4.1. Defined.
Unless otherwise specified herein, Owner shall be in default of this Agreement i (i) Owner
fails to construct the Required Improvements as defined in Section 1.1.; (ii) ad valorem r1al property
taxes with respect to the Premises or the Required Improvements, or its ad valorem taxes y ith 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 i 1orem real
property or tangible personal property taxes; (iii) OWNER DOES NOT USE THE PRE~SES AS
PRIMARY RESIDENCE ONCE THE ABATEMENT BEGINS; or (iv) OWNER DOI ES NOT
COMPLY WITH CHAPTER 7 AND APPENDIX B OF THE CODE OF ORDIN 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. 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 tpne 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 ave 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, a er advising
NEZ Tax Abatement Agreement -Don Ferrier
922 E . Oleander Street
M&C 21-0002 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 Damages.
If an Event of Default which is defined in Section 4 .1 has not been cured within the time frame
specifically allowed under Section 4.2, the City shall have the right to terminate this I Agreement
immediately. Owner acknowledges and agrees that an uncured Event of Default will 1.) 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 f. I volvement
by the City; and (iii) otherwise harm the City, and Owner agrees that the amounts of act 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, a liquidated
damages; all taxes that were abated in accordance with this Agreement for each year wh~n an Event
of Default existed and which otherwise would have been paid to the City in the abs ,nee 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 S€ction 4.3 is
intended to provide the City with compensation for actual damages and is not a penalty. ~-s amount
may be recovered by the City through adjustments made to Owner's ad valorem property t . appraisal
by the appraisal district that has jurisdiction over the Premises. Otherwise, this amount s all be due,
owing and paid to the City within sixty ( 60) days following the effective date of termin,tion of this
Agreement. In the event that all or any portion of this amount is not paid to the City withp sixty (60)
days following the effective date of termination of this Agreement, Owner shall also be 1 able for all
penalties and interest on any outstanding amount at the statutory rate for delinque t taxes, as
determined by the Code at the time of the payment of such penalties and interest ( curren ly, 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 ises or the
anticipated Required Improvements are no longer appropriate or feasible , or that a higher 4r better use
is preferable, the City and Owner may terminate this Agreement in a written format that ~s 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 Package Stores.
a. Owner understands and agrees that the City has the right to terminate this a . reement if
the Required Improvements contains or will contain a sexually oriented business. I
b. Owner understands and agrees that the City has the right to terminate this af 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 ises and/or
Page 5
NEZ Tax Abatement Agreement -Don Ferrier
922 E. Oleander Street
M&C 21-0002 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 , 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 entir 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 EVENT 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 bF THIS
AGREEMENT WITH THE NEW OWNER WITHIN 60 DAYS OF THE TRAN FER OF
OWNERSHIP OF THE REQUIRED IMPROVEMENTS SHALL RESULT IN THE AUJOMATIC
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 fi lowing, 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:
Don Ferrier
5017 Byers
Fort Worth, Texas 76107
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 -Don Ferrier
922 E. Oleander Street
M&C 21-0002 Aooroved : Februarv 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 ortiinances or
regulations, and this Agreement, such ordinances or regulations shall control. In the e ent 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 l 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. 21-0002 on February 23, 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 so long as the
certificate is requested in connection with a bona fide business purpose. The certificate, i requested ,
will be addressed to the Owner, and shall include, but not necessarily be limited to , statt! ments 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 rem ining term
of this Agreement, the levels and remaining term of the Abatement in effect, and such ot 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 que 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 1n any such
litigation.
7.8. Venue and Jurisdiction.
This Agreement shall be construed in accordance with the laws of the State of Texas and
applicable ordinances, rules , regulations or policies of the City. Venue for any action under this
Agreement shall lie in the State District Court of Tarrant County, Texas . This A eement is
performable in Tarrant County, Texas.
NEZ Tax Abatement Agreement -Don Ferrier
92 2 E. Oleander Street
M&C 2 I -0002 Aooroved : Februarv 23. 2021
Page 8
7.9. Severability.
If any provision ofthis Agreement is held to be invalid , illegal or unenforceable, t e validity,
legality 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 thi s Agreement.
7.11. Entirety of Agreement.
This Agreement, including any exhibits 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 constitute
one instrument.
NEZ Tax Abatement Agreement -Don Ferrier
92 2 E . Ol eander Street
M&C 2 1-0002 Aooroved : Februarv 23. 2021
CITY OF FORT WORTH:
By: 5-hr(~~j
Fernando Costa
Assistant City Manager
ATTEST:
APPROVED ~~RM AND LEGALITY:
~11hJ1t'. -ii,mo('
(
Melinda Ramos
Sr. Assistant City Attorney
M & C: 21-0002
Date Approved : February 23, 2021
Page 9
NEZ Tax Abatement Agreement -Don Ferrier
922 E. Oleander Street
M&C 2 1-0002 Aooroved : Februarv 23. 2021
OWNER:
By fl_~ ' ----
Don Ferrier
OFFICIAL RECO RO
CITY SECRETAI y
FT. WORTH, T, (
STATE OF TEXAS §
COUNTY OF ARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Femand 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 I 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 of 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 /':Z,Jl'day of
~ ,2021.
~~~
~otary Public in and for
the State of Texas
STATE OF TEXAS §
COUNTY OF ARRANT §
,,,,•~~•ti,,, SELENA ALA {f?~\~ Notary Public , State of Texas
;~\ ~/v':: Comm. Expires 03-31-2024 ",;;f,R:J~i Notary ID 132422528
BEFORE ME, the undersigned authority, on this day personally appeared Don F f rrier,
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 exp~essed,
in the capacity therein stated.
GIV: N UNDER MY HAND AND SEAL OF OFFICE this ~
~~~U.t,,~rzJ,.,,,;R,~,--:, 2021.
Page 10
SARAH J ODLE
Notary ID #6215320
My Commission Expi res
November 8 , 2023
NEZ Tax Abatement Agreement -Don Ferrier
922 E. Oleander Street
M&C 21-0002 Aooroved : Februarv 23. 2021
OFFICIA L R, ~CORD
CITY SECRI TARY
FT. WORT f, TX
Exhibit 1:
Exhibit 2:
Exhibit 3:
Page 11
Property Description
Application: (NEZ) Incentives and Tax Abatement
Required Improvements description
NEZ Tax Abatement Agreement -Don Ferrier
922 E. Oleander Street
M&C 21-0002 Aooroved: F ebruarv 23. 2021
Exhibit 1
Property Description
922 E. Oleander Street, Lot 28A, Block 1, Graves and McDaniel's Subdivision of Block 8, Evans S uth Addition,
an Addition to the City of Fort Worth, Tarrant County, Texas, according to the Map recorded in olume 204-A,
Page 99, of the Map Records of Tarrant County, Texas.
fORTWORTH q)
xhibit 2
~ Application# ____ _
City of Fort Worth
Neighborhood Empowerment Zone (NEZ) Application for Incentives
plicant Information
Property f~ D11\l/\v1) e Owner/Developer
First
Address: V
Phone:
Street Add?r~ City ~ l1--i~-tfJ t6 iii I Email: VY\ ~ fl; '
Contact: -liovv\
(If different) Last First M.I. --Phone: Email:
Project Type
[5{ □ □ □ □
Single Family Multi-Family Commercial Industrial Community Facilities Mixed-Use
*Please be advised if the project address is zoned as a designated historical property (HC) and your project consists of new
construction or exterior renovations, approval of your project is required prior to NEZ application submittaL Written lapproval from
the Historic and Cultural Landmarks Commission {HCLC) must be attached to the NEZ application. For questio s or further
information concerning historic projects, please contact the HCLC at (817) 392-8000*
Project Address: Z '2. .t::=' ~
Street Address ~
Legal Description: Lo 2. \A'.) U(.:.. l ~ ~ S i--tt
Lot
YES
Block
NO
Addition
YES
New Construction / Addition: Ji'[ .
Total New Sq. Ft. \ ,1 \l1 Sf=
□ Remodel/ Rehab: 0
Total Development Cost:
For a single family project, will the NEZ certified property be occupied by
the property owner as a primary residence?
YES
□
If you sele · · · · ·
property.r-.....___,.~.__.,,,~i....:..,,.......,,..._.--+~'-'--"~.z_:,~-=--:......,..""4--~......_=--::;._....,_,L.;.z.-1-J.,__..........,'-"--'-..L.::....:.~~-,
If ~hi! project s a Commercial project, please list all specific uses that are being prop -
Incentives
Do you wish to apply for a Municipal Property Tax abatement for this project?
NO
Jg:
sed as rental
t~d)~
If the above answer is yes, please contact the City of Fort Worth Neighborhood Services Department at (817) 392-7 16 or
visit http;//fortworthtexas .gov/neighborhoods/NEZ/ for additional information. Tax Abatements are processed af~r NEZ project
certification and must go before the City Council for a vote. House Bill 3143 took effect on September 1, 201 ~ which
requires at least 30 days advance notice be given of the tax abatement. Due to compliance with BB 3143, the minimum time
to process a tax abatement to be on the City Council agenda for vote is 12 to 14 weeks after the date of certifi~ation.
A licants re uestin tax abatement ma not submit or a buildin ermit until the abatement has been a roved b the Ci
Council and the applicant has signed a contract
Revised 10/16119 SO
FORT WORTH.
~ Application# ___ _
City of Fort Worth
Neighborhood Empowerment Zone (NEZ) Application for Incentives
YES ,0
Do you wish to apply for a release of NEZ Policy eligible City liens'! 0
Weed, Paving, Demolition and Board Up/ Open Structure liens may be released for qua I if ying projects .
For Zonin Office Use Onl
YES
Will a Zoning Change application be necessary for this project? □
Current Zoning: __ NST 4 R.__ ______ Proposed L' se: _residential=-----
NO
~
Signature of Zoning Staff: £(J).)..,tcx Vt:>U~ --Date: 12/14/2020
--~-----------------------➔
Acknowled ements
PLEASF. I ITIAL. NEXT TO EACH STATEME T ~ I understand that my application will not be processed ifit is incomplete. I agree to provide any additional i formation
for determining eligibility as requested by the City. lftbe additional infonnation is not submitted within 30 days, the pplication
w~be denied and application fees paid will not be rcimbutscd .
_P?-__ I hereby certify that the information provided is true and accurate to the best ofmy knowledge.
_iJ}-_ I hereby certify that all documents and information required by the Application Submittal Checklist is attac ed.
~ hereby acknowledge that I have read the NEZ Basic Incentives and Tax Abatement Policy, which governs t c granting
of tax abatements, fee waivers and release of City liens, and that any VIOLATION of the terms of the NEZ Basic ncentives
or .MlSREPRESENTATION shall constitute grounds for r~jection of an application or termination of inccnti cs at the
discretion of the City.
~ [ under st.and that the approval of fee waivers and other incentives shall not be deemed to be approval of any &-pect of
the project. I understand that I am responsible for obtaining required permits and inspections from the City and in erisuring the
p~is located in the correct zoning district. I
I understand that if there arc taxes due or liens against any property I own in the City of Fort Worth I ay not be
el~-for NEZ incentives.
l hereby certify that the project plans submitted with this app)icati on meet the NEZ design guideline requi ments as
listed below or meet Stra i Pl 1 ii Jin ,. th r hill n i hts O kland m r.~ , · r t •.t
outlined on the NEZ web.D,~ I understand that if the project plans do not meet these dc..c;ign requirements, all permits wi!J be
put on hold pending correction. lf f choose to rclinquisb my NEZ certification instead of meeting the design req~iremcnts,
payment for. all foes waived by the City up to that point will be due immediately and the building permit will not be is ued until
payment is made.
a . No metal buildin.!fi except for industrial projects.
b.AII new construction projects must contain 70% masonry product
c. Exceptions to the masom y product will be made at the City's discretion for design district overlays ( where a plicab le)
and approved planned development projects .
d.Compliancc with NEZ design guidelines for Council adopted NEZ Strategic Plans (Berryhill/Mason Heights ,
Oakland Comers and Stop Si.x) is required for certification .
/<n c.Attachcd garages for new single family homes may not extend more than 4 feet past the front building wall .
_/Jf-J__ understand that I must pay all associated foes at the time of project application and/or permit submittal ifll wish to
submit permits prior to determination of NEZ eligibility. This includes setting up an escrow account with the City. I J dcrstand
that some permits may not be issued while NEZ eligibility is~·· ·tablishe ample: Applications that are reque ting Tax
A atcm ~4 .. 4 _
. 'f ~ . l-( I
Printed Name of Property
Chrner/Devclo er
R<M.od 10/1S/1 9SO
Si2nature of Prn!)erty
Owner/Devclo C?r
l xhibit 3
Project Description
New Construction of a single family residence
• 1,707 square feet living space
• 2 Story
• 3 Bedroom, 2 ½ Bath
• Utility/Laundry Room
• Living Room
• Kitchen
• Back Patio
• Hardie Plank Exterior
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 01/12/21
LOG NAME: 19NEZ922EOLEANDER
SUBJECT
M&C FILE NUMBER: M&C 21 -0002
(CD 8) Authorize Execution of a Five-Year Tax Abatement Agreement with Don Ferrier for the Construction of a Single-Family qwelling of
Approximately 1,707 Square Feet and Having a Cost of at Least $259 ,585 .00 on Property Located at 922 E. Oleander Street, Near the Historic
Southside Neighborhood and Within Neighborhood Empowerment Zone and Reinvestment Zone Area Six (Continued from a P evious Meeting)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a five-year Tax Abatement Agreement with Don Ferrier for th construction of a
single-family dwelling of approximately 1,707 square feet and having a cost of at least $259 ,585.00 on property located at 922 . Oleander
Street , near the Historic Southside Neighborhood and within Neighborhood Empowerment Zone and Reinvestment Zone Area • ix, in accordance
with the Neighborhood Empowerment Zone Program Basic Incentives and Tax Abatement Policy .
DISCUSSION:
Don Ferrier (Property Owner) is the owner of the property described as the Lot 28A, Block 1, Graves and McDaniel's Subdivisi n of Block 8 ,
Evans South Addition , an addition to the City of Fort Worth, according to the map recorded in Volume 204-A, Page 99 , Map an ~/or Plat Records,
Tarrant County , Texas , at 922 E. Oleander Street, Fort Worth , Texas . The property is located near the Historic Southside neighb , rhood and within
Neighborhood Empowerment Zone (NEZ) Area Six.
The Property Owner plans to invest an estimated amount of $259 ,585 .00 to construct a single-family residence of approximate! 1,707 square
feet (Project). The Proje ct will be sold to a homeowner to be used as a primary residence .
The Neighborhood Services Department reviewed the application and certified that the Property Owner and Project met the eligibility criteria to
receive a NEZ Municipal Property Tax Abatement. The NEZ Basic Incentives include a Five-Year Municipal Property Tax Abate njent on the
increased value of improvements to the qualified owner of any new construction or rehabilitation within the NEZ. Residential owner occupied tax
abatements are capped at the annual median home value as reported by the National Association of Realtors for Tarrant County Th is 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 calculatin municipal
property tax will be fro zen for a period of five years starting January 2022 at the estimated pre-improvement value as defined by he Tarrant
Appraisal District (TAD) in December 2020 for the property as follows :
Pre-Improvement TAD Value of Improvements $ 0.00
Pre-Improvement Estimated Value of Land $3 ,750.00
Total Pre-Improvement Estimated Value I $3,750.001
The municipal property tax on the improved value of the Project after construction using the capped value is estimated in the am , unt 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 abateme I t 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 Properjty Owner as a
primary residence . All other assignments must be approved by the City Council.
This property is located in COUNCIL DISTRICT 8 .
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 p operty tax
revenue may occur over the five year period. This reduction in revenue will be incorporated into the long term financial fo recast UROn the Tax
Abatement being officially granted . I
Submitted for City Manager's Office by: Fernando Costa 6122
Originating Business Unit Head: Victor Turner 8187
Additional Information Contact: Sarah Odle 7316
Ci ty of F ort Worth -F il e#: M&C 2 1-0002 1
Home
Det ail s
File #:
Type :
File created:
On agenda:
Title :
Att h t ac mens:
Hist ory (2)
2 reco rds
Date
2/23/2021
1/12/20 2 1
Sig n I n
Leg islation Calendar City Council Depart m ents
(if (rl~ [D Share [m .RSS J [v A!eits]
Reports
M&C 21 -0002 Version: 1 Name:
Award of Contract -Report of CM Status: Passed
1/7/2021 In control: CITY COUl'IJCIL
2/26/2021 Final action: 2/23/2021
(CD 8) Authorize Execution of a Five-Year Tax Abatement Agreement with Don Ferrier
for the Construction of a Single -Family Dwelling of Approximately 1,707 Squ ~re Feet
and Having a Cost of at Least $259,585.00 on Property Located at 922 E. 01 , ander
Street, Near the Historic Southside Neighborhood and Within Neighborhood
Empowerment Zone and Reinvestment Zone Area Six (Continued from a Previous
Meeting) I
1 M&C 21 0002 2 922 E 01 d M f C ·1 df 3 NZ20 01201 Pl rl df -I ean er a(:;l or ounc, ·R , -a s.o,
Text
Group Export J
Ver. Action By Action Resu lt Ac t ion Detai ls Meeting Details Video ---
1 CITY COUNCIL Approved Action details Meeting details Yi! ,gg
1 CITY COUNCIL Continued Action details Meeting det ails Not a ~ailable
http s://fortwo rthgov .l egistar .com/Legi slationD etail.as px?ID =474 5578&GUID=3 1D EE6A0-... 3/8/2 02 1