HomeMy WebLinkAboutContract 44518� � a _ � ;;.� ♦
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TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD
EMPOWERMENT ZONE
2817 West Sth Street
This TAX ABATEMENT AGREEMENT ("Agreement") is entered into by and between
the CITY OF FORT WORTH, TEXAS (the "City"), a home rule municipal corporation organized
under the laws of the State of Texas and acting by and through T.M. Higgins, its duly authorized City
Manager, and 5<<' Street Studios LLC, owner of property located at 2817 West Stl' Street, Block 16,
Lots 5 and 6, Van Zandt's 2°d Addition, in the City of Fort Worth, Tarrant County, Texas, and as
shown on the Plat recorded in Volume 106, Page 118, Tarrant County, Texas.
The City Council of the City of Fort Worth ("City Council") hereby finds and the City and
Owner hereby agree that the following statements are true and correct and constitute the basis upon
which the City and Owner have entered into this Agreement:
A. Chapter 378 of the Texas Local Government Code allows a municipality to create a
neighborhood empowerment zone if the municipality determines that the creation of the zone would
promote:
(1) the creation of affordable housing, including manufactured housing in the zone;
(2) an increase in economic development in the zone;
(3) an increase in the quality of social services, education, or public safety provided to
residents of the zone; or
(4) the rehabilitation of affordable housing in the zone.
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B. Chapter 378 of the Texas Local Government Code provides that a municipality that
creates a neighborhood empowerment zone may enter into agreements abating municipal property
taxes on property in the zone.
C. On July 31, 2001, the City Council adopted basic incentives for property owners who
own property located in a Neighborhood Empowerment Zone, stating that the City elects to be
eligible to participate in tax abatement and including guidelines and criteria governing tax abatement
agreements entered into between the City and various third parties, titled "Neighborhood
Empowerment Zone "NEZ Basic Incentives" ("NEZ Incentives"), these were readopted on
February 5, 2013 (Resolution No. 4180). 'The February 5, 2013 NEZ Incentives are attached hereto as
Exhibit "1" hereby made a part of the Agreement for all purposes.
D. The NEZ Incentives contains appropriate guidelines and criteria governing tax
abatement agreements to be entered into by the City as contemplated by Chapter 312 of the Texas Tax
Code, as amended (the "Code").
E. On December 7, 2010, the Fort Worth City Council adopted Ordinance No. 19466 (the
"Ordinance") establishing "Neighborhood Empowerment Reinvestment Zone No.15R" City of Fort
Worth, Texas (the "Zone") and adopted Resolution No. 3950 establishing "Designation of the Trinity
Park Area as a Neighborhood Empowerment Zone" (the "NEZ"). ___ __
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Neighborhood Empowerment Zone Tax Abatement
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F. Owner owns certain real property located entirely within the Zone and that is more
particularly described in Exhibit "2", attached hereto and hereby made a part of this Agreement for all
purposes (the "Premises").
G. Owner or its assigns plan to redevelop/remodel an existing building, Required
Improvements, as defined in Section 1.1 of this Agreement, on the Premises (the ��Project").
H. On March 29, 2013 Owner submitted an application for tax abatement to the City
concerning the Premises (the ��Application"), attached hereto as Exhibit "3" and hereby made a part
of this Agreement for all purposes.
I. The contemplated use of the Premises, the Required Improvements, as defined in
Section 1.1, and the terms of this Agreement are consistent with encouraging development of the
Zone in accordance with the purposes for its creation and are in compliance with the NEZ Incentives,
the Ordinance and other applicable laws, ordinances, rules and regulations.
J. The terms of this Agreement, and the Premises and Required Improvements, satisfy
the eligibility criteria of the NEZ Incentives.
K. Written notice that the City intends to enter into this Agreement, along with a copy of
this Agreement, has been furnished in the manner prescribed by the Code to the presiding officers of
the governing bodies of each of the taxing units in which the Premises is located.
NOW, THEREFORE, the City and Owner, for and in consideration of the terms and
conditions set forth herein, do hereby contract, covenant and agree as follows:
1. OWNER'S COVENANTS.
1.1. Real Property Improvements.
Owner shall construct, or cause to be constructed, on and within the Premises certain
improvements consisting of an interiar and exterior remodel of (i) an existing 5200 square foot
building; and (ii) having a construction cost upon completion of $337,896.00 including site
development costs but such minimum construction costs shall be reduced by any construction
cost saving (collectively, the "Required Improvements"). The type, number and location of
the Required Improvements are described in Exhibit "4". Tarrant Appraisal District must
appraise the property (improvements and land) within 10% of $337,896.00. Owner shall
provide a copy of the final construction invoices to City once the construction is complete; the
construction invoices shali be a part of this Agreement and shall be labeled Exhibit "5". Minor
variations, and more substantial variations if approved in writing by both of the parties to this
Agreement, in the Required Improvements from the description provided in the Application
for Tax Abatement shall not constitute an Event of Default, as defined in Section 4.1, provided
that the conditions in the first sentence of this Section 1.1 are met and the Required
Improvements are used for the purposes and in the manner described in Exhibit "4".
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Neighborhood Empowerment Zone Tax Abatement with 5`�' Street Studios LLC
.
1.2. Completion Date of Required Imurovements.
Owner covenants to complete construction of all of the Required Improvements by
May 7, 2015 (the "Completion Deadline"). The Required Improvements shall be deemed
complete upon the issuance of a final certificate of occupancy far the Required Improvements
by the Planning and Development Deparhnent. Provided however, if the Owner fails to
complete construction of the Required Improvements by the Completion Deadline or fails to
expend at least Three Hundred Thirty Seven Thousand, Eight Hundred Ninety Six Dollars
($337,896.00) in Construction Costs for the Required Improvements by the Completion
Deadline as provided in Section 1.1 of this agreement; the City shall have the right to
terminate this Agreement by providing written notice to the Owner without further obligation
to the Owner hereafter.
1.3. Use of Premises.
Owner covenants that the Required Improvements shall be rehabilitated/remodeled
and the Premises shall be continuously used as a Workshop for Artisans and Light
Fabrication and in accordance with the description of the Project set forth in the Exhibit "4".
In addition, Owner covenants that throughout the Term, the Required Improvements shall be
operated and maintained for the purposes set forth in this Agreement and in a manner that is
consistent with the general purposes of encouraging development or redevelopment of the
Zone.
2. ABATEMENT AMOUNTS. TERMS AND CONDITIONS.
Subject to and in accordance with this Agreement, the City hereby grants to Owner real
property tax abatement on the Premises, the Required Improvements, as specifically provided in this
Section 2("Abatement"). "Abatement" of real property taxes only includes City of Fort Worth-
imposed taxes and not taxes from other taxing entities.
2.1. Amount of Abatement.
The actual amount of the Abatement granted under this Agreement shall be based
upon the increase in value of the Premises and the Required Improvements over their
values on April 22, 2013, and this amount is $10,124.00, the year in which this Agreement
was entered into:
One Hundred percent (100%) of the increase in value from the
construction of the Required Improvements.
If the square footage requirement and the appraised value of the Required
Improvements are less than as provided in Section 1.1 of this Agreement, except that
such minimum construction costs shall be reduced by construction cost savings, Owner
shall not be eligible to receive any Abatement under this Agreement.
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Neighborhood Empowerment Zone Tax Abatement with Sth Street Studios LLC
2.2. Increase in Value.
The abatement shall apply only to taxes on the increase in value of the Premises due
to construction of the Required Improvements and shall not apply to taxes on the land, nor
shall the abatement apply to mineral interests.
2.3. Abatement Limitation.
Notwithstanding anything that may be interpreted to the contrary in this Agreement,
Owner's Abatement in any given year shall be based on the increase in value of the Premises
over its value on April 22, 2013, including the Required Improvements, up to a maximum of
$506,844.00. In other words, by way of example only, if the increase in value of the Premises
over its value on April 22, 2013, including the Required Improvements, in a given year is
$507,000.00, Owner's Abatement for that tax year shall be capped and calculated as if the
appraised value of the Premises for that year had only been $506,844.00.
2.4. Protests Over Appraisals or Assessments.
Owner shall have the right to protest and contest any or all appraisals or assessments
of the Premises and/or improvements thereon.
2.5. Term.
The term of the Abatement (the "Term") shall begin on January 1 of the year
following the calendar year in which a final certificate of occupancy is issued for the
Required Improvements ("Beginning Date") and, unless sooner terminated as herein
provided, shall end on December 31 immediately preceding the fifth (5`l')
anniversary of the Beginning Date.
2.6. Abatement Application Fee.
The City acknowledges receipt from Owner of the required Abatement application fee
of one half of one percent (.5%) of Project's estimated cost, not to exceed $2,000. The
application fee shall not be credited or refunded to any party for any reason.
3. RECORDS, AUDITS AND EVALUATION OF PROJECT.
3.1. Inspection of Premises.
Between the execution date of this Agreement and the last day of the Term and for five
(5) years after termination ("Compliance Auditing Term"), at any time during normal office
hours throughout the Term and the year following the Term and following reasonable notice
to Owner, the City shall have and Owner shall provide access to the Premises in order for the
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Neighborhood Empowerment Zone Tax Abatement with 5`h Street Studios LLC
City to inspect the Premises and evaluate the Required Improvements to ensure compliance
with the tertns and conditions of this Agreement. Owner shall cooperate fully with the City
during any such inspection and/or evaluation.
3.2. Audits.
The City shall have the right to audit at the City's expense the financial and business
records of Owner that relate to the Project and Abatement terms and conditions
(collectively, the ��Records") at any time during the Compliance Auditing Term in order to
determine compliance with this Agreement and to calculate the correct percentage of
Abatement available to Owner. Owner shall make all applicable Records available to the
City on the Premises or at another location in the City following reasonable advance notice
by the City and shall otherwise cooperate fully with the City during any audit.
3.3. Provision of Information.
On or before March 1 following the end of every year during the Compliance
Auditing Term and if requested by the City, Owner shall provide information and
documentation for the previous year that addresses Owner's compliance with each of the
terms and conditions of this Agreement for that calendar year. This information shall
include, but not be limited to, the number and dollar amounts of all construction contracts
and subcontracts awarded on the Project.
Failure to provide all infornzation within the control of Owner required by this Section 3.3
shall constitute an Event of Default, as defined in Section 4.1.
3.4. Determination of Compliance.
On or before August 1 of each year during the Compliance Auditing Term, the City
shall make a decision and rule on the actual annual percentage of Abatement available to
Owner for the following year of the Term and shall notify Owner of such decision and
ruling. The actual percentage of the Abatement granted for a given year of the Term is
therefore based upon Owner's compliance with the terms and conditions of this Agreement
during the previous year of the Compliance Auditing Term.
4. EVENTS OF DEFAULT.
41. Defined.
Unless otherwise specified herein, Owner shall be in default of this Agreement if (i)
Owner fails to construct the Required Improvements as defined in Section l.l .; (ii) ad valorem
real property taxes with respect to the Premises or the Project, or its ad valorem taxes with
respect to the tangible personal property located on the Premises, become delinquent and
Owner does not timely and properly follow the legal procedures for protest andlor contest of
any such ad valorem real property or tangible personal property taxes or (iii) OWNER DOES
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Neighborhood Empowerment Zone Tax Abatement with 5`h Street Studios LLC
NOT COMPLY WITH CHAPTER7 AND APPENDIX B OF TH
ORDINANCE OF THE CITY OF FORT WORTH (collectively, each
Default").
4.2. Notice to Cure.
E CODE OF
an "Event of
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 ninety (60) calendar days from the date of receipt of this written notice to
fully cure or have cured the Event of Default. If Owner reasonably believes that Owner will
require additional time to cure the Event of Default, Owner shall promptly notify the City in
writing, in which case (i) after advising the City Council in an open meeting of Owner's
efforts and intent to cure, Owner shall have one hundred eighty (180) calendar days from the
original date of receipt of the written notice, or (ii) if Owner reasonably believes that Owner
will require more than one hundred eighty (180) 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 there from are speculative in nature and will
be difficult or impossible to ascertain. Therefore, upon termination of this Agreement for any
Event of Default, Owner shall not be eligible for the Abatement for the remaining Term and
Owner shall pay the City, as liquidated damages, all taxes that were abated in accordance with
this Agreement for each year when an Event of Default existed and which otherwise would
have been paid to the City in the absence of this Agreement. The City and Owner agree that
this amount is a reasonable approximation of actual damages that the City will incur as a result
of an uncured Event of Default and that this Section 4.3 is intended to provide the City with
compensation for actual damages and 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.
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Neighborhood Empowerment Zone Tax Abatement with 5`h Street Studios LLC
4.4. Termination at Will.
If the City and Owner mutually determine that the development or use of the
Premises or the anticipated Required Improvements are no longer appropriate or feasible, or
that a higher or better use is preferable, the City and Owner may terminate this Agreement in
a written format that is signed by both parties. In this event, (i) if the Term has commenced,
the Term shall expire as of the effective date of the termination of this Agreement; (ii) there
shall be no recapture of any taxes previously abated; and (iii) neither party shall have any
further rights or obligations hereunder.
4.5. Sexuallv oriented Business & Lipuor Stores or Packa�e Stores.
a. Owner understands and agrees the City has the right to terminate this
agreement if the Project contains or will contain a sexually oriented business.
b. Owner understands and agrees that the City has the right to terminate this
agreement as determined in City's sole discretion if the Project contains or will contain a
liquor store or package store.
5. EFFECT OF SALE OF PREMISES.
Company may assign this Agreement and all or any portion of the benefits provided
hereunder to an Affiliate without the consent of the City, provided that (i) prior to or
contemparaneously with the effectiveness of such assignment, Company provides the City with
written notice of such assignment, which notice shall include the name of the Affiliate and a contact
name, address and telephone number, and (ii) the Affiliate agrees in writing to assume all terms and
conditions of Company under this Agreement. For purposes of this Agreement, an "Affiliate"
means all entities, incorporated or otherwise, under common control with Company, controlled by
Company or controlling Company. For purposes of this definition, "control" means fi$y percent
(50%) or more of the ownership determined by either value or vote. Company may not otherwise
assign this Agreement or any of the benefits provided hereunder to another party without the
consent of the City Council, which consent shall not unreasonably be withheld or delayed, provided
that (i) the City Council finds that the proposed assignee is financially capable of ineeting the terms
and conditions of this Agreement and (ii) the proposed assignee agrees in writing to assume all
terms and conditions of Company under this Agreement. Any attempted assignment without the
City Council's prior written consent shall constitute grounds for termination of this Agreement and
the Abatement granted hereunder following ten (10) calendar days of receipt of written notice from
the City to Owner.
In no event shall the abatement term be extended in the event of a subsequent sale or
assignment.
6. NOTICES.
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Neighborhood Empowerment Zone Tax Abatement with Sth Street Studios LLC
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
1000 Throckmorton
Owner:
Sth Street Studios LLC
Attn: Virginia Ann Lawrence
PO Box 6745
Fort Worth, TX 76102
Tyler, Texas 75711
and
Housing and Economic Development Deparhnent
Attn: Jay Chapa
1000 Throckmorton
Fort Worth, TX 76102
7. MISCELLANEOUS.
7.1. Bonds.
The Required Improvements will not be financed by tax increment bonds. This
Agreement is subject to rights of holders of outstanding bonds of the City.
7.2. Conflicts of Interest.
Neither the Premises nor any of the Required Improvements covered by this
Agreement are owned or leased by any member of the City Council, any member of the City
Planning or Zoning Commission or any member of the governing body of any taxing units
in the Zone.
7.3. Conflicts Between Documents.
In the event of any conflict between the City's zoning ordinances, or other City
ordinances or regulations, and this Agreement, such ordinances or regulations shall control.
In the event of any conflict between the body of this Agreement and Exhibit "4", the body of
this Agreement shall control. As of May 7, 2013, the City is unaware of any conflicts
between this Agreement and the City's zoning ordinance or other ordinances or regulations.
7.4. Future Application.
A 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.
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Neighborhood Empowerment Zone Tax Abatement with 5`h Street Studios LLC
7.5. Citv Council Authorization.
This Agreement was authorized by the City Council through approval Mayor and
Council Communication No. G26236 on May 7, 2013, which, among other things, authorized
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, which if requested will be addressed to the Owner, shall include, but not
necessarily be limited to, statements that this Agreement is in full force and effect without
default (or if an Event of Default exists, the nature of the Event of Default and curative
action taken and/or necessary to effect a cure), the remaining term of this Agreement, the
levels and remaining term of the Abatement in effect, and such other matters reasonably
requested by the party or parties to receive the certificates.
7.7. Owner 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 accordance with the laws of the State of Texas
and applicable ordinances, rules, regulations, or policies of the City. Venue for any action
under this Agreement shall lie in the State District Court of Tarrant County, Texas. This
Agreement is performable in Tarrant County, Texas.
7.9. Severability.
If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be
affected or impaired.
7.10. Headin�s Not Controlling.
Headings and titles used in this Agreement are for reference purposes only and shall
not be deemed a part of this Agreement.
7.11. Entirety of Agreement.
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Neighborhood Empowerment Zone Tax Abatement with 5`h Street Studios LLC
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 counteiparts, each of which shall be
considered an original, but all of which shall constitute one instrument.
EXECUTED this ��day of _,� �. �� d`��-�- , 2013, by the City of Fort Worth, Texas.
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EXECUTED this �day of n'«� i.- , 2013, by St�' Street Studios LLC.
CITY OF FORT WORTH:
By: a(v
Fernando Costa
Assistant City Manager
ATTEST: � �
By: '�� �����' �L ��
� ary Kayser
� City Secretary
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APPROVED AS TO FORM AND
:
M & C: G26236
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By: d L�
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Ann Lawrence
Manager
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Page 10 of 12
Neighborhood Empowerment Zone Tax Abatement with 5`" Street Studios LLC
Melinda Ramos
Assistant City Attorney
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeased 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 UNDER MY HELND AND
��'; , 2013.
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CJ
N ary Public in and for
the�.State of T
f_
,
Notary's Printed Name
STATE OF TEXAS
COUNTY OF
0
SEAL OF OFFICE this --3 day of
: ,OS 'IflY�'r" �'•
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'�N'rF�4�„��4:
�VQNIA DANIELS
i�AY COMNIISSIOh EXPIRES
July 10, 2013
BEFORE ME, the undersigned authoriry, on this day personally appeared Virginia Ann Lawrence,
known to me to be the person whose name is subscribed to the foregoing instrument, and
acknowledged to me that she executed the same for the purposes and consideration therein
expressed, in the capacity therein stated and as the act and deed of Manager of 5�` Street Studios
LLC.
GIVEN iJNIDER MY HAND AND
May
MARGARET JANE MAx'1' 1
Notary Public in and for
The State of Texas
MARGARET JANE MARTIN
Notary's Printed Name
2013.
SEAL OF OFFICE this 2oth day of
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Neighborhood Empowerment Zone Tax Abatement with Sth Street Studios LLC
E�iibit L
E�ibit 2:
Exhibit 3:
E�ibit 4
E�ibit 5:
NEZ Incentives
Froperty Description
Application: (NEZ) Incentives and Tax Abatement
Project description
improvements.
including kind, number, and Iocation of the proposed
Final Construction Invoices
Page 12 of 12
Neighborhood Empowerment Zone Tax Abatement with Sth Street Studios LLC
Exhibit 1
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) TAX ABATEMENT POLICY AND BASIC
INCENTIVES
I. GENERAL PURPOSE AND OBJECTIVES
Chapter 378 of the Texas Local Government Code allows a municipality to create a
Neighborhood Empowerment Zone (NEZ) when a"...municipality determines that the creation
of the zone would promote:
(1) the creation of affordable housing, including manufactured housing, in the zone;
(2) an increase in economic development in the zone;
(3) an increase in the quality of social services, education, or public safety provided to
residents of the zone; or
(4) the rehabilitation of affordable housing in the zone."
The City, by adopting the following NEZ Tax Abatement Policy and Basic Incentives, will
promote affordable housing and economic development in Neighborhood Empowerment Zones.
NEZ incentives will not be granted after the NEZ expires as defined in the resolution designating
the NEZ. For each NEZ, the City Council may approve additional terms and incentives as
permitted by Chapter 378 of the Texas Local Government Code or by City Council resolution.
However, any tax abatement awarded before the expiration of a NEZ shall carry its full term
according to its tax abatement agreement approved by the City Council.
As mandated by state law, the property tax abatement under this policy applies to the owners of
real property. Nothing in the policy shall be construed as an obligation by the City of Fort Worth
to approve any tax abatement application.
II. DEFINITIONS
"Abatement or Tax Abatement" means a full or partial exemption from City of Fort Worth ad
valorem taxes on eligible real and personal property located in a NEZ for a specified period on
the difference between (i) the amount of increase in the appraised value (as reflected on the
certified tax roll of the appropriate county appraisal district) resulting from improvements begun
after the execution of a written Tax Abatement Agreement and (ii) the appraised value of such
real estate prior to execution of a written Tax Abatement Agreement (as reflected on the most
recent certified tax roll of the appropriate county appraisal district for the year prior to the date
on which the Tax Abatement Agreement was executed).
"Affordable Units" means atfordable to persons earning /ess than 80% Area Median Family
Income (AMFI) as defined by U. S. Department of Housing and Ur,6an Development (HUD) for
single family housing and under 60% AMFI as defined by HUD for rental and multi-family.
"Base Value" is the value of the Real Property Improvements, excluding land, as determined by
the Tarrant County Appraisal District, during the year rehabilitation occurs.
"Building Standards Commission" is the commission created under Sec. 7-77, Article IV.
Minimum Building Standards Code of the Fort Worth City Code.
Adopted — February 5, 2013 1
"Capital Investment" includes only Real Property Improvements such as new facilities and
structures, site improvements, facility expansion, and facility modernization. Capital Investment
does NOT include land acquisition costs and/or any existing improvements, or personal property
(such as machinery, equipment, and/or supplies and inventory).
"City of Fort Worth Tax Abatement Policy Statement" means the policy adopted by City Council.
"Commercial/Industrial Development Project" is a development project
construct or rehabilitate commercial/industrial facilities on property tha
requirements to be) zoned commercial, industrial or mixed use as defined
Worth Zoning Ordinance.
which proposes to
t is (or meets the
by the City of Fort
"Community Facility Development Project" is a development project which proposes to construct
or rehabilitate community facilities on property that allows such use as defined by the City of
Fort Worth Zoning Ordinance.
"Eligible Rehabilitation" includes only physical improvements to Real Property Improvements.
Eligible Rehabilitation does NOT include personal property (such as furniture, appliances,
equipment, and/or supplies).
"Gross Floor Area" is measured by taking the outside dimensions of the building at each floor
level, except that portion of the basement used only for utilities or storage, and any areas within
the building used for off-street parking.
"Minimum Building Standards Code" is Article IV of the Fort Worth City Code adopted pursuant
to Texas Local Government Code, Chapters 54 and 214.
"Minority Business Enterprise (MBE)" and "Women 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 Project" is a development project which proposes to construct or
rehabilitate 3 or more multi-family residential living units on a property that is (or meets the
requirements to be) zoned multi-family or mixed use as defined by the City of Fort Worth Zoning
Ordinance.
"New Construction" is a newly constructed habitable structure improvement requiring a
permanent foundation. This excludes accessory structures such as sheds and incidental out
buildings.
"Primary Residence" is the residence that has a Homestead Exemption on file with Tarrant
County Appraisal District.
Adopted — February 5, 2013 2
"Project" means a "Residential Project'; "Commercial/lndustrial 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 enterprise zone pursuant to the Texas Enterprise Zone
Act, codified in Chapter 2303 of the Texas Government Code.
"Residential Projeci" — means less than 3 residential units.
III. MUNICIPA� PROPERTY TAX ABATEMENTS
A. 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:
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b.
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Property is owner-occupied and the primary residence of the homeowner prior to
the final NEZ designation. Homeowner shall provide proof of ownership by a
warranty deed, affidavit of heirship, or a probated will, and shall show proof of
primary residence by homestead exemption; and
Property is rehabilitated after NEZ designation and City Council approval of the
tax abatement;
Homeowner must perform Eligible Rehabilitation on the property after NEZ
designation equal to or in excess of 30% of the Base Value of the Real Property
Improvements; and
Property is not in a tax-delinquent status when the abatement application is
submitted.
2. For residential property purchased after NEZ designation, a homeowner shall be
eligible to apply for a tax abatement by meeting the following:
a. Real Property Improvements are constructed or rehabilitated after NEZ
designation and City Council approval of the tax abatement;
b. Property is owner-occupied and is the primary residence of the homeowner.
Homeowner shall provide proof of ownership by a warranty deed, affidavit of
heirship, or a probated will, and shall show proof of primary residence by
homestead exemption;
c. For rehabilitated Real Property Improvements, Eligible Rehabilitation costs on
the Real Property Improvements shall be equal to or in excess of 30% of the
Base Value of the Real Property Improvements. The seller or owner shall provide
the City information to support rehabilitation costs;
d. Property is not in a tax-delinquent status when the abatement application is
submitted; and
Adopted — February 5, 2013 3
e. Property is in conformance with the City of Fort Worth Zoning Ordinance
however, a property use that is legal non-conforming shall not be eligible to
receive a tax abatement.
3. For investor owned single family property, an investor shall be eligible to apply for a
tax abatement by meeting the following:
a. Real Property Improvements are constructed or rehabilitated after NEZ
designation and City Council approval of the tax abatement;
b. For rehabilitated Real Property Improvements, Eligible Rehabilitation costs on
the Real Property Improvements shall be equal to or in excess of 30% of the
Base Value of theReal Property Improvements;
c. Property is not in a tax-delinquent status when the abatement application is
submitted; and
d. Property is in conformance with the City of Fort Worth Zoning Ordinance.
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MULTI-FAMILY DEVELOPMENT PROJECTS LOCATED IN A NEZ
1. 100% Abatement for 5 vears.
If an applicant applies for a tax abatement aqreement with a term of five vears or
less, this section shall apply.
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 Aqreement
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 throuqh 10 of the Tax Abatement Aqreement
Multi-family projects shall be eligible for a 1%-100% abatement of City ad valorem
taxes for years six through ten of the Tax Abatement Agreement upon the
satisfaction of the following:
a. At least twenty percent (20%) of the total units constructed or rehabilitated shall
be affordable (as defined by the U. S. Department of Housing and Urban
Development) and set aside to persons with incomes at or below eighty percent
(80%) of area median income based on family size. In addition at least 5% of the
total units constructed or rehabilitated shall be compliant with the Americans with
Disability Act (ADA) in accordance with Section 504 of the Rehabilitation Act, and
must be fully accessible and 2% of the total units constructed must be fully
accessible to persons with sensory impairments. City Council may waive or
reduce the 20% affordability requirement on a case-by-case basis; and
Adopted — February 5, 2013 5
1. For a 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
less, this section shall applv.
Abatements for Commercial, Industrial and Community Facilities Development
Projects for up to 5 years are subject to City Council approval. The applicant may
apply with the Housing and Economic Development Department for such abatement.
In order to be eligible for a property tax abatement, a newly constructed or
rehabilitated commercial/industrial and community facilities development project in a
NEZ must satisfy the following:
a. A commercial, industrial or a community facilities development project
constructed after NEZ designation must have a minimum Capital Investment of
$75,000; or
b. For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible
Rehabilitation costs on the Real Property Improvements shall be at least 30% of
the Base Value of the Real Property Improvements, or $75,000, whichever is
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
years, this section shall applv.
Adopted — February 5, 2013 6
Abatements agreements for a Commercial, Industrial and Community Facilities
Development projects for up to 10 years are subject to City Council approval. The
applicant may apply with the Housing and Economic Development Department for
such abatement.
Years 1 throuqh 5 of the Tax Abatement Agreement
Commercial, Industrial and Community Facilities Development projects shall be
eligible for 100% abatement of City ad valorem taxes for the first five years of the
Tax Abatement Agreement upon the satisfaction of the following:
a. A commercial, industrial or a community facilities development project
constructed after NEZ designation must have a minimum Capital Investment of
$75,000; or
b. For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible
Rehabilitation costs on the Real Property Improvements shall be at least 30% of
the Base Value of the Real Property Improvements, or $75,000, whichever is
greater.
Years 6 throuqh 10 of the Tax Abatement Aqreement
Commercial, Industrial and Community Facilities Development projects shall be
eligible for 1%-100% abatement of City ad valorem taxes for years six through ten of
the Tax Abatement Agreement upon the satisfaction of the following:
a. A commercial, industrial or a community facilities development project
constructed after NEZ designation must have a minimum Capital
Investment of $75,000 and must meet the requirements of subsection (c)
below ; or
b. For a rehabilitation project, it must be rehabilitated after NEZ designation.
Eligible Rehabilitation costs on the Real Property Improvements shall be
at least 30% of the Base Value of the Real Property Improvements, or
$75,000, whichever is greater and meet the requirements of subsection
(c) below.
c. Any other terms as City Council of the City of Fort Worth deems
appropriate, including, but not limited to:
1. utilization of Fort Worth companies for an agreed upon percentage of
the total costs for construction contracts;
2. utilization of certified minority and women owned business enterprises
for an agreed upon percentage of the total costs for construction
contracts;
3. commit to hire an agreed upon percentage of Fort Worth residents;
4. commit to hire an agreed upon percentage of Central City residents;
and
5. landscaping.
Adopted — February 5, 2013 7
D. MIXED-USE DEVELOPMENT PROJECTS LOCATED IN A NEZ
1. 100% Abatement of Citv Ad Valorem taxes for 5 years
If an applicant applies for a tax abatement aqreement with a term of five vears or
less, this section shall applv.
Abatements for Mixed-Use Development Projects for up to 5 years are subject to
City Council approval. The applicant may apply with the Housing and Economic
Development Department for such abatement.
In order to be eligible for a property tax abatement, upon completion, a newly
constructed or rehabilitated mixed-use development project in a NEZ must satisfy the
following:
a. Residential uses in the project constitute 20 percent or more of the total Gross
Floor Area of the project. At least twenty percent (20%) of the total units
constructed or rehabilitated shall be affordable (as defined by the U. S.
Department of Housing and Urban Development) and set aside to persons with
incomes at or below eighty percent (80%) of area median income based on
family size. In addition at least 5% of the total units constructed or rehabilitated
shall be compliant with the Americans with Disability Act (ADA) in accordance
with Section 504 of the Rehabilitation Act, and must be fully accessible and 2%
of the total units constructed must be fully accessible to persons with sensory
impairments; and
b. Office, eating and entertainment, and/or retail sales and service uses in the
project constitute 10 percent or more of the total Gross Floor Area of the project;
and
(1) A mixed-use devetopment 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 aqplies for a tax abatement aqreement 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 Aqreement
Mixed Use Development projects shall be eligible for 100%
valorem taxes for the first five years of the Tax Abatement
satisfaction of the following:
abatement of City ad
Agreement upon the
Adopted — February 5, 2013 8
a. Residential uses in the project constitute 20 percent or more of the total Gross
Floor Area of the project. At least twenty percent (20%) of the total units
constructed or rehabilitated shall be affordable (as defined by the U. S.
Department of Housing and Urban Development) and set aside to persons with
incomes at or below eighty percent (80%) of area median income based on
family size. In addition at least 5% of the total units constructed or rehabilitated
shall be compliant with the Americans with Disability Act (ADA) in accordance
with Section 504 of the Rehabilitation Act, and must be fully accessible and 2%
of the total units constructed must be fully accessible to persons with sensory
impairments; and
b. Office, eating and entertainment, and/or retail sales and service uses in the
project constitute 10 percent or more of the total Gross Floor Area of the project;
and
c. A new mixed-use development project constructed after NEZ designation must
have a minimum Capital Investment of $200,000; or for a rehabilitation project, it
must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the
Real Property Improvements shall be at least 30% of the Base Value of the Real
Property Improvements, or $200,000, whichever is greater.
Years 6 throuqh 10 of the Tax Abatement Aqreement
Mixed Use Development projects shall be eligible for 1-100% abatement of City ad
valorem taxes for years six through ten of the Tax Abatement Agreement upon the
satisfaction of the following:
a. Residential uses in the project constitute 20 percent or more of the total Gross
Floor Area of the project; At least twenty percent (20%) of the total units
constructed or rehabilitated shall be affordable (as defined by the U. S.
Department of Housing and Urban Development) and set aside to persons with
incomes at or below eighty percent (80%) of area median income based on
family size. In addition at least 5% of the total units constructed or rehabilitated
shall be compliant with the Americans with Disability Act (ADA) in accordance
with Section 504 of the Rehabilitation Act, and must be fully accessible and 2%
of the total units constructed must be futly accessible to persons with sensory
impairments; and
b. Office, eating and entertainment, and/or retail sales and service uses in the
project constitute 10 percent or more of the total Gross Floor Area of the project;
c. A new mixed-use development project constructed after NEZ designation must
have a minimum Capital Investment of $200,000; or for a rehabilitation project, it
must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the
Real Property Improvements shall be at least 30% of the Base Value of the Real
Property Improvements, or $200,000, whichever is greater; and
d. Any other terms as City Council of the City of Fort Worth deems appropriate,
including, but not limited to:
Adopted — February 5, 2013 9
1. utilization of Fort Worth companies for an agreed upon percentage of the
total costs for construction contracts;
2. utilization of certified minority and women owned business enterprises for
an agreed upon percentage of the total costs for construction contracts;
3. property inspection;
4. commit to hire an agreed upon percentage of Fort Worth residents
5. commit to hire an agreed upon percentage of Central City residents
6. landscaping;
7. tenant setection 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 tocated 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
III.E.1 E.2; and E3. and
b. File an application with the Housing and Economic Development Department, as
applicable; and
c. The property owner must enter into a tax abatement agreement with the City of
Fort Worth. In addition to the other terms of agreement, the tax abatement
agreement shall provide that the agreement shall automatically terminate if the
owner receives one conviction of a violation of the City of Fort Worth's Minimum
Building Standards Code regarding the property subject to the abatement
agreement during the term of the tax abatement agreement; and
d. If a property in the NEZ on which tax is being abated is sold, the new owner may
enter into a tax abatement agreement on the property for the remaining term.
10. If the terms of the tax abatement agreement are not met, the City Council has the
right to cancel or amend the abatement agreement. In the event of cancellation, the
recapture of abated taxes shall be limited to the year(s) in which the default occurred
or continued.
11. The terms of the agreement shall include the City of Fort Worth's right to: (1) review
and verify the applicant's financial statements in each year during the life of the
agreement prior to granting a tax abatement in any given year, (2) conduct an on site
inspection of the project in each year during the life of the abatement to verify
compliance with the terms of the tax abatement agreement, (3) terminate the
agreement if the Project contains or will contain a sexually oriented business (4
terminate the agreement, as determined in City's sole discretion, if the Project
contains or will contain a liquor store or package store.
Adopted — February 5, 2013 11
12. Upon completion of construction of the facilities, the City shall no less than annually
evaluate each project receiving abatement to insure compliance with the terms of the
agreement. Any incidents of non-compliance will be reported to the City Council.
On or before February 1st of every year during the life of the agreement, any
individual or entity receiving a tax abatement from the City of Fort Worth shall
provide information and documentation which details the property owner's
compliance with the terms of the respective agreement and shall certify that the
owner is in compliance with each applicable term of the agreement. Failure to report
this information and to provide the required certification by the above deadline shall
result in cancellation of agreement and any taxes abated in the prior year being due
and payable.
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.
F. 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.
IV. FEE WAIVERS
A. ELIGIBLE RECIPIENTS/PROPERTIES
1. 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 apply for a fee
waiver.
2. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order
to be considered "eligible" to apply for a fee waiver under this Policy, the Woodhaven
Community Development Corporation and the Woodhaven Neighborhood
Association must have submitted a letter of support for the Project to the City of Fort
Worth—however, once the NEZ Plan is submitted for the Woodhaven NEZ, this will
no longer be required.3. Projects to be constructed on property to be purchased
under a contract for deed are not eligible for development fee waivers.
3. In order for a property owner/developer to be eligible to apply for fee waivers for a
Project, the property owner/developer:
Adopted — February 5, 2013 12
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.
L�
Approval of the application and waiver of the fees shall not be deemed to be
approval of any aspect of the Proiect. Before construction, the applicant must
ensure that the protect is located in the correct zoninq district.
DEVELOPMENT FEES
1. Once the Application for NEZ Incentives has been approved and certified by the City, the
following fees for services 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:
d�
b)
c)
d)
e)
f)
9)
h)
i)
1)
k)
I)
m)
All Building Permit related Fees (including Plans Review and Inspections) except as
stated in IV B. 2. below
Plat Application Fee (including Concept Plan, Preliminary Plat, Final Plat, Short Form
Replat)
Board of Adjustment Application Fee
Demolition fee
Structure Moving Fee
Community Facilities Agreement (CFA) Application Fee
Zoning Application Fee
Street and Utility Easement Vacation Application Fee
Ordinance Inspection Fees
Consent/Encroachment Agreement Application Fees
Transportation Impact Fees
Urban Forestry Application Fees
Sign Permit Fees
2. If a permit or application listed in B(1) is expired, the fee to reactivate, renew or reapply
shall not be waived. In addition, penalties and extension fees or re-permitting fees will
not be waived.
3. Neighborhood Empowerment Zone Fees not waived or reduced:
a.) Investigation Fees
b.) Plan Revision Fees
c.) Change of Record Fees
d.) Inspection outside of normal business hours Reinspection Fee
e.) Annual Fire Inspection Fees
Adopted — February 5, 2013 13
4. Other development related fees not specified above will be considered for approval by
City Council on a case-by-case basis.
C.
IMPACT FEES
1. Single family and multi-family residential development projects in the NEZ.
Automatic 100% waiver of water and wastewater impact fees will be applied.
2. Commercial, industrial, mixed-use, or community facility development projects in the
NEZ.
a. Automatic 100% waiver of water 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 liens, demolition liens, board-up/open structure liens and paving liens; and
Adopted — February 5, 2013 14
e. of a Project that contains or will contain a liquor store, package store or a sexually
oriented business has received City Council's determination the Project is eligible
to receive a release of City liens.
�
C.
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.
DEMOLITION LIENS
Builders or developers developing or rehabilitating a property for a Project are eligible to
apply for release of demolition liens for up to $30,000. Releases of demolition liens in
excess of $30,000 are subject to City Council approval.
BOARD-UP/OPEN STRUCTURE LIENS
The following are eligible to apply for release of board-up/open structure liens:
1. Single unit owners performing rehabilitation on their properties.
2. Builders or developers constructing new single family homes on vacant lots.
3. Owners performing rehabilitation on multi-family, commercial, industrial, mixed-use,
or community facility properties.
4. Developers constructing multi-family, commercial, industrial, mixed-use, or
community facility projects.
PAVING LIENS
The following are eligible to apply for release of paving liens:
1. Single unit owners performing rehabilitation on their properties.
2. Builders or developers constructing new homes on vacant lots.
3. Owners performing rehabilitation on multi-family, commercial,
or community facility properties.
industrial, mixed-use,
Adopted — February 5, 2013 15
4. Developers constructing multi-family, commercial, industrial, mixed-use, or
community facility projects.
F. All other City liens will not be waived.
VI. PROCEDURAL STEPS
A. APPLICATION SUBMISSION
1. The applicant for NEZ incentives under Sections III. IV., and V. must complete and
submit a City of Fort Worth "Application for NEZ Incentives" and pay the appropriate
application fee to the Planning and Development Department, as applicable.
2. The applicant for incentives under Sections III.C.2 and D.2 must also complete and
submit a City of Fort Worth "Application for Tax Abatement" and pay the appropriate
application fee to the Housing and Economic Development Department. The
application fee, review, evaluation and approval will be governed by City of Fort
Worth Tax Abatement Policy Statement for Qualifying Development Projects.
3. All NEZ certifications for incentives will expire after five years.
4. NEZ benefits will continue for certified projects (18) eighteen months after a NEZ is
terminated or the NEZ boundary changed.
B. CERTIFICATIONS FOR APPLICATIONS UNDER SECTIONS 111. IV, AND V
1. The Planning and Development Department will review the application for accuracy
and completeness. A complete application must include proof that:
1. The Project is located in a NEZ;
2. The Public Notification Process has been completed as stated in section IX;
3. The project is in compliance with the adopted NEZ plan; and
4. The Council Member for the district in which the project is located has approved the
project.
Once the Planning and Development Department determines that the application is
complete, the Planning and Development Department will certify the property
owner/developer's eligibility to receive tax abatements and/or basic incentives based on
the criteria set forth in Section III., IV., and V. of this policy, as applicable. Once an
applicant's 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
Tax Abatement for Residential Properties and Multi-family Development
a. For a completed and certified application for no more than five years of tax
abatement, with Council approval, the City Manager shall execute a tax
abatement agreement with the applicant.
b. For a completed and certified multi-family development project application for
more than five years of tax abatement:
(1) The Housing and Economic Development Department will evaluate a
completed and certified application based on:
(a) The project's increase in the value of the tax base.
(b) Costs to the City (such as infrastructure participation, etc.).
(c) Percent of construction contracts committed to:
(i) Fort Worth based firms, and
(ii) Minority and Women Owned Business Enterprises (M/WBEs).
(d) Other items which the City and the applicant may negotiate.
(3) Consideration by the City Council
The City Council retains sole authority to approve or deny any tax abatement
agreement and is under no obligation to approve any tax abatement
application or tax abatement agreement. The City of Fort Worth is under no
obligation to provide tax abatement in any amount or value to any applicant.
c. Effective Date for Approved Agreements
All tax abatements approved by the City Council will become effective on
January 1 of the year following the year in which a Certificate of Occupancy (CO)
is issued for the qualifying development project (unless otherwise specified in the
tax abatement agreement). Unless otherwise specified in the agreement, taxes
levied during the construction of the project shall be due and payable.
2. Property Tax Abatement for Commercial, Industrial, Community Facilities, and
Mixed-Use Development Projects
a. For a completed and certified application for no more than five years of tax
abatement, with Council approval, the City Manager shall execute a tax
abatement agreement with the applicant.
b. For a completed and certified application for more than five years of tax
abatement:
(1) The Housing and Economic Development Department will evaluate a
completed and certified application based on:
(a) The project's increase in the value of the tax base.
(b) Costs to the City (such as infrastructure participation, etc.).
(c) Percent of construction contracts committed to:
(i) Fort Worth based firms, and
(ii) Minority and Women owned Business Enterprises (M/WBEs).
Adopted — February 5, 2013 17
(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.
VII1. OTHER INCENTIVES
A. The City Council may add the following incentives to a NEZ in the Resolution adopting
the NEZ:
Adopted — February 5, 2013 18
1. Municipal sales tax refund
2. Homebuyers assistance
3. Gap financing
4. Land assembly
5. Conveyance of tax foreclosure properties
6. Infrastructure improvements
7. Support for Low Income Housing Tax Credit (LIHTC) applications
8. Land use incentives and zoning/building code exemptions, e.g., mixed-use, density
bonus, parking exemption
9. Tax Increment Financing (TIF)
10. Public Improvement District (PID)
11. Tax-exempt bond financing
12. New Model Blocks
13. Loan guarantees
14. Equity investments
15. Other incentives that will effectuate the intent and purposes of NEZ.
IX. Public Notification
a. Subject to subsection (b), in order for an owner/developer to apply to receive any
incentives provided for under the NEZ Tax Abatement Policy and Basic Incentives,
an owner/developer must meet with the following persons and organizations to
discuss the Project:
1. the Council Member for the District the Project is located; and
2. the neighborhood associations or community based organizations registered
with the city that are within 300 feet of the proposed Project. The
measurement of the distance between the proposed project and Neighborhood
Associations or Community Based Organizations shall be along the property
lines of the street fronts and from front door to front door, and in direct line
across the intersections.
b. Subsection (a) shall be satisfied upon:
1. the owner/developer meeting with the City Council Member for the District the
Project is located and the neighborhood associations or community based
organizations registered with the city that are within 300 feet of the proposed
Project; or
2. meeting with the City Council Member for the District the Project is located and
upon the owner/developer providing proof that the owner/developer attempted
to meet with the neighborhood associations and the community based
organizations registered with the city within 300 feet of where the proposed
Project is located and the associations or organizations failed to arrange a
meeting with the owner/developer within two weeks of initial contact.
c. Accepted proof of "attempts to meet" with the registered organizations will be
satisfied with the following:
1. a copy of a certified letter sent to the registered organization describing the
project and requesting a meeting and the green card from the post office; or
2. a copy of the e-mail sent to the registered organization describing the project
and requesting a meeting and the response from the organization.
Adopted — February 5, 2013 19
X. Ineliaible 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
Purpose
This refund policy is for the purpose of establishing the conditions under which the City
may refund development and impact fees, normally waived through the Neighborhood
Empowerment Zone (NEZ).
Applicability
Unless expressly accepted, this policy applies to all development and impact fees
waived by the City through the NEZ.
Under the NEZ Tax Abatement Policy and Basic Incentives, City Departments are
authorized to waive impact and development fees for qualified projects located in a
designated NEZ. The impact fees include only water and sewer impact fees, up to
$55,000 for commercial, industrial, mixed-use or community facilities projects. The
development fees that can be waived through the NEZ include:
1. All building permit fees (including Plans Review and Inspections)
2. Plat application fee (including concept plan, preliminary plat, final plat, short form
replat)
3. Board of Adjustment application fee
4. Demolition fee
5. Structure moving fee
6. Community Facilities Agreement (CFA) application fee
7. Zoning application fee
8. Street and utility easement vacation application fee.
To take advantage of these waivers, applicants need to obtain a certification letter from
the Planning and Development Department.
Conditions for Refunds
The City will consider refunds only when circumstances beyond the developers control
prevent them from obtaining the qualification letter from the Planning and Development
Department.
A property owner and/or developer may qualify for a refund if the proposed
development project meets all criteria to receive a fee waiver under the NEZ Tax
Abatement and Basic Incentives Policy and:
a. The owner and/or developer was not made aware of the NEZ incentives at the
time the fees were paid; or
b. The owner and/or developer was mistakenly told that his/her property was not in
a designated NEZ; or
Adopted — February 5, 2413 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
Propertv Legal Description
2817 West Sth Street, Block 16, Lots 5 and 6, Van Zandt's 2nd Addition, in the City of Fort
Worth, Tarrant County, Texas, and as shown on the Plat recorded in Volume 106, Page
118, Tarrant County, Texas
C1�)�J11LitUV111VV ' 1VCG n��u�auvi��tu
Exhibit 3
IYI�.!/lUlI11VlU4C.\d5.}�'U�/U�IVAUCUI'11CS/Ylil111ll1f� S4i1_LC�"CIO(7tllY,:11,..
FORT WORTH a��,�;��,� rr o. i� ���-�� I`-i %
�r
CIT� C�F F�RT �VURTH
NEIGHBORH04D II�IPO�VII2I�IENT Z4NE (NEZ) PROGR.�].4I
PR(�.TF.C'T (�'FRTTFTC',aTTnN aPPT:iC:.�TT(�N
I.
�PPLICATION CHECK LIST - Please suUmit the following documentAtion:
❑ � completed applic�tion f�xn�
❑ � li�t uf all properties o���ned by the ;�plicant, o�c��e��. develope��, 1�OCi1tz�, �]I'i1lC1�flI>, p�u�tners, and �zuts
in the Cihr Fo�fi �L'orth
❑ Non Reti�ndable Applieation [ee — For all Basic liicenti� es applic�tious eschicliug Ta.� _�bateinent tl�e
al�plication fee is $25.00. For multifamil�-, conunercial. hichistrial, conui►ercial f�cilities, and uiiseci-t�ae taa
aU:�teinent applicatiuus: 0.5°0 of tlie totat Capita! Inv�hneut of tl�e project, ��•itli a$200.00 muiu�uun �uid
vot to eYceed $2.QOO.OQ: F�r resict�ntial taa abatement apglic�tiot�s: $104.Oa �� l�ouse.
■''.
�'
■
■
■
Proof of o��•nc� �ip, �t�ch as a���air�in� deect, affida��it of heu•�l�ip, or a�robated «�ill OR evidence of �ite
colitrol. ��tieh as optiou to buy (� regfstered ��arr;�nh� deecl is requireci for taa abatement �pplieation.)
Title abdract of the prupert�r {ont�� ii �pply-u� for rele�se of C`it�- liens)
a rech�ced l ltl? floor plan, site pian, and site elevation �uith
a�trritkc�i detailed project description tl►at uicludes a coi�shl�etio�i tuiie line
� detailed liue item U�id�et �iu�vui� tl�e co�-t breal:do«�u fur the project
Co�� of Incocgoration Papers ttotit►�; all pci�irip;�ls, parhiers, ancl agents ii :�ppllc�Ule
❑ Requireci - ric�t �c�itli tl�e Couuciliiie�iiber and NeiJiborhood �� oth�� C>raanizatiou� r�re�eutuia tl�e NEZ
as outluied ui tl�e Public Notice recp�u�auen# of the NEZ Policy and t:7tiictel'u�es re�-ised april6. 200� oc
fullu�Fed buidetinec af 1vEZ Stratetric Plati i� a StrateQic Plan is ui place for the �ecific NEZ.
❑ Support letter fi�om �`'ooclhacen Nei�hba�hood :�swciatioii and «'oocihaae�i Coniuiunin� Developnieiit
Ca�puratiun (For pi•o jects loc»ted in �iToocll�»ven NEZ only )
INCOD�LETE ?,PYLICATIONS ��'II1I, NOT BE PROCESSED FOR CERTIFIC�TION LTNTIII :�LL REQL�tED
DOCCT113TiNTS SHO��N IN THE iLBO�T CHECkZLST ART SIIBI4IITTED `i%ITHIN 30 DAYS �TPR THE
�PPLICATION IS RE CEI�'ED.
YpiT hiiTST :�.PPLI' FC�R TA.� AB.�TE14iENT BEFORE �NY Bi1ILDING YERhiITS �RE ISSiTED FOR YOIrR
PROPERTi AND BEFORE �IVii Ilb�RO�'E11iENTS ARE hiAVE TO YdiTR PR(7PERTY. IT T:�ICES 60 TO 90
BiTSINESS DAI S T4 CO1t�IPLETE THE TA.Z :�BATE1�iENT aGREEhiENT AYPROV�I.: PROC'ESS AFTER THE
ISS'LTaNCE OF NEZ CERTIFICATION DEPENDING ON TAE COh�LESITl OF YOIiR PROJECT. A7I�
BL?II.DING PFItMITS 14ILTST BE PL�I.LED WTTHIIPT THE 12 1bfONTH YERIOD THaT CERTIFIC�TION wA,S
APPRO��D. (�R �VIT'HIN THE 12 DIONTH PERIOD THAT THE T�l �B�TE2b�NT �tiA5 APPROE�ED, OR 7i OLT
�`'ILL BE REQUIRED TO RE .�PYLI FORNEZ INCENTIVES.
II. �PPLIC�IVT ! :�GENT INFORIIIATION
1. applicant: S��ET ���QS �..G2. C'ontact Person: �xl�i �—�'}t.t)2� C�
3. address: '�, D�ox 6-7�15 'T�(L41L T�. -7�'7 I 1
.
Street CYtt State Zip
-1. Phaue uo.: e��. S`j� �(—T ;. Fat No.: Sl4w..�
6. Email:
". �aent (if an�)
8. address:
9. Phoue no.:
11. Email:
Recised JnIF• 22, 3G10
�_
1
1 of G 3/2C/2013 10:58 AM
Street C`ih State Zip
�7�3Z� 153�_, lO.FAxNo.: $1�• �37• 413G
4v�4�tv� ��, w���? vJa�� . co� .�__
N�J}Ji1l:iJUVll 1VV ' tVr,L iA1l�lll:Al1V11�U1
. ` FORT WORTH
PROJE�'T ELIGIBILTTI'
�pplicatb.in No.
1. Pie�se list ctoKrn tlie addresses and lega! desct�iption.s or rlie j�roJe�t aud otlier properties t our
org:�iilz.ition a��°ns iu Fort �i`oi•th. Attach metes �nd bouuds desci•iption ir no addi•ess or tegs�l
ctescrfption is available. �ttacl� a map sho�tiing tt�e localion of the project.
Table 1
C� ther
�.Cldl'ess
iect Lucalivu
iuip.iiiun�� u�uue�i�.go� iupioaueur►iesiriau►u►�ai�_Le��elopurrir...
SnUcli��ision NAme
, �.n. .,... �ND /'
o�med iu the C'itv af Fort �'4'ortli - continue oii a
r�,5'r -_-�� �L_ _t _D_-7 7�.rn 'z
'� ST d--� L, D--� Va� Z�rrr 2'
Lot No. Block No.
� , �0 1 �o
te sLeet and attacl� if necessaiti�.
"'] f �
2. For eacti propertti- listed iu Table 1, please rLeck the boxes below to iuciicate if:
• tl�ere �ue tases past ch�e: or
• tl�ere ;�e Cin� lieiLs: or
• I"on (nteanuig the applicai�t, dev�loper. �ssociate5, a�eiu., ln-uicigal.�) l��ve been �tibject to a Bitilcii�ig
St�tt�d�u'ds (.:'oiiuiussioii s C�rder of De»iolitioii �j•liere tl�e prupeit�r n�a� deiiiolisl�ed �vitl�iti t1�e lart fi�•e
z�e�u�� .
TaUle 2
�ddcess
O��iers6ip
� ztp Code
Tares aud Citv I�ens
� Property
� Tases
� Due
CYn lleus on Propert��
--r-------'-----
�i`eed Board-np:Open � Demalition � P»�fi►�
LieuY Smchu•e Liens i Lieus I I.iens
(Ples�se s�ftacA siddltioual sLeetv of ps�pei• s�s needed.)
❑1'i�A' Of
D an olition
If there are tuses due or liens �gainst an�� properh• in the C'it�• of Fort �`'orth ��ou ma�� not be etigible
for NEZ incentn�es
Re�-isecl July ?2. 3010
�
2 of 6 �/26/2013 10:58 AM
n�Yii�uuvai ivv - iva_:c.._aNYii�auvi�Enu
, ' FORT WORTN
3. Do yon owu other properfles imder other names?
If Yes, please specify
�a�Y.ii�v.��rv�uuc.w�.gvviuYivaucw•iic��rizuuuig tuu Lc�civNiicu...
❑Yes�No
Applicatipn N u.
-�. Doe� the p►•oposed project couform ��lth Cfn� of Foi•t �V orth Zoniu�? [X] 1 es ❑ Nu
;.
���
Comm�rcial
o ( o � o
Iuchisch•ial Community Facilities Aii�ced-ITse
� .• _ •
� I2mtslProperty
6. Pleuse desci•ibe the proposeci resideutial or commercial praject:
� Xi'IT� Lti nQ_,lGS �o PS .F a 2 /4ita"7 S��s _.�'
'. If � our pi•oject is a commercial, indyLstrial, or mised-use project, please de:�cribe the n�es of
bi�sinesses that are l�eiug propasecl: '�• � o� ,,���,,,�
8. Is this a uew constriutiou or rel�ab project? ❑ Nc�;� t�unstn�ction Q Rehab
9. Haw mach is ttie total dez�elopmeut cost of your �x•oject? �{�`"j , O O O
10. �i`ill the eli�iUle rehabilitalion work�` equsil to at least 3Q"�o of the TarrAiit :�ppraisat Dist��ict (TAD)
assesseci value of the structure clurfug tl�e year rehabuitatlon occ�irs? �] �es ❑ No
If nu, �vl��t steps are beuig t�l�en to u�iue cor
Praject ❑ ❑
�'j'y�; Siugle Fauiily I�i�i lti- Famih•
'�Eliaible rehabilitatio�i uicludes �nl}� physical 'u»provalients to re�l prapei��. It doc� iVC�T iuclude�
Froiit Y:u-d feiicui� caisi�tuia of cliaiu-liuk or wlid material con�tri�ctioii: persuual prope�ty s1u1� as fiuy�iture.
appliauces, eqttipuieut, ancUor slt�plies. Tatal eliaible reliabilitation co�s Jial( eqtial to oi• e�ceed 30°�0 of tl►e
T�1D appt'�ised �•alue of U►e �t�ucRu�e cfurui, Uie ye�u� reliabilitaticxi accurs.
11. How� much is the total sq�iare foota�e oi votu� project? �� 3 3� sc�iue feet
� If agpl3�ing for a taa abatement please an�ver qnestions 12 —1G. If nat skip to part III Incentives
12. For a siu�le-familv homeownership, miged-use, or miilti-favnil� de�-elopment proiect, please flll aut
Clle I1ilIt1I3P.P at resideutiat unit� baseci on income range of ow�iers or reuters in the fallowing taUle.
Tubie 3 Nu�uLr.r �C RrsiQrnilul Ui�ils au�l Iucome Rau�e uf On uer�
NmiiUer of Uniks
bic ame
> 30°oof:�l�g'I**
�t rn: belo«� 30° o of �IF'I
Rrul ers
Percei�tage
Total Uiuts
**��I: :�rea hiediw F<nuily Iucome. Ple:tse see attaduueut fo�� iucouie and housiug pa}nuzut s;nidelniea.
13. For a mNtifawilv profect to be qnaliffecl far tas aUatement, at least 204.v of total uuits sLali Ue
afforduWe to fAmilies at or below 8!}e,e o1AAIF'I. Check the bog iivou ure reqnestin; A w�uiver oi this
requiremen� ❑
1-3. For a covnmerrial, industi�iat or commtudn- facitifies nroiect,
ReE-i�ecl Jatv 33. 3010
3
3 of 6 3/26/2013 10:58 AM
inclicate S(�ti:il'e foota�e of uon-
t�4l�luu�uvtt tvv - Lvi:.�_uYyu�auva�.�nai
,a.Y.��..,.�...,...,....,,..,.b...,.,2...,.....�.............._.......o_`• _ _' _'�r"^
` FORT WORTH ���h�7�,� No.
�
1�. How mach ��ill be fo�u• Capital Invesctmeut�' *"' on the project7 Please ase the followin� ta�le to pro��idP
thedetails and amoaut of,yonr C'apital Iuvestmeui (.�ttacl�ed addifloual sheets if uecessai;v).
!7�
1G. For a commercial, iud�tsh�ial, commuvih' fAcilin� or mised-ase praject, Lo�t� inan` emplo�ees `�°ill the
pi•aject �enerate? �� �,,vU
1". For a inised-use proiec� please indicate tLe perceuta�e aP ull uses iu the project iu the follo�viug table.
T�UIe 5
Percen
III. INCENTT�'ES -«'liat iucentives are � ou appl�°iug ior?
riunicin�l P►'anern Tai abate�nents
11Ii�.st pro��ide Final Plat Cabfnet aud S7ide for Tut �batemeut (�al�iuiet Slide
� � ye�u5
7,i�nin� �1}plic;�tinn fee
ORe.�dey�tia! ��viier occi�ied ORe��icleiia:il Ra»tal P�.�opert�� ❑��ru.tmeiits (5 pht� mutsj � C'oaiuiierci�l
�
Develanment Fee �Vai�°ers
(� :�ll bt�ild'u�g pernut related fee� (uichuiii�e Pla��.� Re�ie�i� �uid L��pectioik )
❑ Plat applicatioii fee (uichuiit� crnicept pl�u�. lnelimui�' pl�t, fi�k�l plat, sl�uit fo�i► replat}
r'�
►1
,�
�
I)eii�olition fee
❑ Al�re tl�vi S j�erus
❑ R�ard �f ,��Ijn�hnent aln�lic�ti�n fee
❑ Stnlctiue mo�-v� fee
C'onminiun� Facilities ��i�eemeN (CF':�} aPplicatioii fee
Street and i�tilit�r e�s�mei�t racatiou applicatinn fee
Impact Fee �'F'ai�°ers - The maximum water/wastewater impact fee waiver amount for a commercial, industrial, mnced-
use, or community faciNty development project is equivalent to the water/wastewater impact fee of two 6-inch meters
❑ �v ater
Release of CYn Liens
❑ �ieed lie��.e
Re�-ised Jiil�� _"_. 2U10
(1lteter Size ?
❑ Pa��vg liei��
(No. af iuetei� � ❑ Ti�ik�portatian
❑ Board np.=open strnchtre lie�L� ❑ Deinolitirni lieik
�
� of C �/26/2013 10:58 AN
+**C:ry�it:►1 Iu�-eshna►t iuclades oal}• real property improvemevts s�mh as ne�� facilities :uid strochu•es, aite uuprol-e�ueuts, farility
e��:+nsiun. n�d f�cility modeniization C':�ihil Iu�-eshnent DOFS NOT inchide I:nd acquiaitiu�� co�ts :uid:or �ny exis�tu�2
iuipro�-emeuts, or persoual propafi� (»tich :�s machiuen', equq>meut. �d-or s��pplies or iucento�y-).
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�4ar01 '13 11:26a Lawrence Cons Ent.
903-592-0182
817-737-7138
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P�"�
P�1ac 29 �3 ':1:1?a WaltOn, . tatp�(/fornvorttu�ws.govlt�ploaded�'iles/Plar.nic�and_Dcv�iopmertlikv,.
FO--- R� ��� aPP�4ou Nu.
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Tl L aC Ec_."�`I OR'LEDG�IENT S
1 liereby certify tl��t tlie vifonu�d�n prc�rided is t�ve �utd �ccwhte to tlie be��t of nti�� 2�zowled�e. i tieCetry
:�ck��o��•Lcdee tl�t i 3iat•e recci�'et1 1 cnpt� of?�IEZ T�:ti'iC Lu et�tives. �:�'luch g�t�ent� the gi��tutg af ta� ai>::[en►ettts. fee
ti+-�u��ers <uxi rele�se of Citv lie��s, <uid tltai ;ut}� �'Il7L:�TION oi the lenits of tl�e NEZ Basic vice�ttS�-es or
\[75I2EPRESEM:�TION ahall con.sr_hite erv�ettt� fo7 iejectios� of aft a��plic�tian or tenuuinrion of iuce�iti�es at the
ciiscret�auoftl� Cit}�.
I tu�ciet: tactd Utatlltt 1p�'o��l uf fee �+-aivei� ;ttul otlter uue�uiv� 31uil1 itot be dee�ned lo be approt�:il nf :iuy x.-pea af
iiie inoject. I under�ar►d tiiat I:uii resl>oir_b!e ni oUttiuu:te reqtiu•ed 1�7iu:a a:�d i�L��ctiw�3 iro�n tl�e Cin' aiui i�i
rs� nuuig Ihe �Sroject is tociced 'ui the couecl zc�uwz�, di.zhicl.
I�uiderst.uid t)�at n��• ��icatio�t ��7I1 stat he prxessed if it i� �r�oi❑I�tetE
u�°ornkrtio�i Sor cietent►�tii� eli�ilsility �z recg�esteti b}• ttie City. �
\ !.`
fitF lioi: ai otlier �xupe�tie:?
. t�'eed liens
. Bo1rd-up�o��i shticU�re liea�
• Drr.t�liriou licn;�
Ni'ED dR TYPFD ttiAhlG) ��[�THdRiZED SI�I�:�TipRE) /<D"ATE}
Pt�ase �nail w• fns y�o+u� applicatiou to:
CitY of Fort Nwth Plauaiu� aiut Dcrydopmevt Depa!•ttneut
� 1000 Throc3cmortou Street, F'ort 4Va�qi, Tex�s '%610Z
Tef :(8I 7 39�-2222 Fa.r. (S17 392-$116
Elec,ro►uc ��cision of tiu.� fonu is sn•tilable oa o�►i �ret��te, Par i�icue li►fa►iu�tion oi. t��e NHZ Yrogia�u, plea� �-i�it
o�u �ve� :ite ar �w��r.far[s��orthgo��.or��p{annin�2Ut1CiCVNonineL{
�F Office ilsr U yv �
3N;�ticctian No. � ���� ��-��n �rhiti� 1�'E2° ►.I_ .�.� �� �.�,..t�- .CotuiciS Dtshict �
�pplicatim� Coity�letedl�ate rl2tcaivcdDate): _ _.. __.. _ "aifcno �c�ilh Za�uis� ❑ 1'� QNo
L}11C� � SF ❑ Muit�fau�i.y �Conunzru:r! �[►xkr�t�tial Q Coi�,nn:nihr facititi2� ❑ hliCecl-Use
Con�vctiai contNletioi� <�ete" �C Befnre lv'��ac �.�iEZ d��•u�•�at}�!Sit� Control L Yes No
'T'.-LD Acc�uut No __ ___.__ Cai�iste►;rc��itlt tE�eNEZ pJyt? ps QNo
Afocc �orcial�ilin•te��? es ❑ Ne A3ininiiun Ca�iEal In�•cSnncuT' c� ❑ i`o
R�t�aL a[ a hi��er tUau 30°�b' .- ❑ Na T��CCI 1:)ISt(I-USC CIC�llllil0l;'' es ❑ No
Tax ciu�e��t a+ Nzis protxy�.�°? ' s ❑ No Ta� a�i1•e�z1 oit othsr proparlics'? 'es [] No
CiCt� :iens oit tl�i: prot�e�Y�.o
• l�'ud ltens ❑ i"cs
• Bo�•c!-ap;o��ai st.Zic�u•e lic�� [] �'e;:
• �c�uulidon liu�s ❑ Ycs
. Pa��u�� .'icua
• Ofdt1' Of tki! GOIT
l:t�t�zit:' `�,�`�� ❑NQ
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If t:ot ca•[i5cc1, re�so�i
❑ � c:
❑ 1'��
CertiFieci b�=
kefe�i�ed W: �&conoiiuc De�•elopi;�e�il
. Paa&�� tic«
• Oi•da� of denioiition
D�te certificat_on i�aied?
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❑Housin� �Dec�elo�xi�a�t ��l%atr�• QC'odc �TPiE'
Re�-ised Jnly 32. �010 !
o: 5
1 a�:'ee co isrotide �ui� ad:liti��i:;il
?l25/2013 1 _36 PM
Exhibit 4
Proiect Description
Renovate a 5,300 square foot auto tire service building into a maximum of 5 workshop/
studios for use by artisans and light fabrication with a shared conference room accessible
for all studios.
• Replace existing
suspended canopy.
garage doors with new windows and doors covered with a
• Planter boxes installed between the window openings to provide landscaping.
• The front will be stucco and windows or roll up doors will also be added to the rear of
each unit to provide access from the alley.
• Equip each space with a new accessible restroom with individual HVAC and electric
services.
• The ceilings will be 14' high.
GCiU'NC#� ACT10N: Approued on 5/7i20'[3 ;
DATE:
CODE:
5/7/2013
C
REFERENCE
NO..
TYPE:
G26236
NON-
CONSENT
LOG NAME:
PUB�IC
HEARING:
17NEZ2817WEST5TH
�
SUBJECT: Authorize a Five-Year Tax Abatement Agreement with 5th Street Studios LLC, to
Redevelop an Existing Building Into an Establishment for Artisans and Light Fabrication
on Property Located at 2817 West 5th Street in the Trinity Park Neighborhood
Empowerment Zone (COUNCIL DISTRICT 9)
RECOMMENDATION:
It is recommended that the City Council authorize a five-year Tax Abatement Agreement with 5th
Street Studios LLC, to redevelop an existing building into an establishment for artisans and light
fabrication on property located at 2817 West 5th Street in the Trinity Park Neighborhood
Empowerment Zone, in accordance with the Neighborhood Empowerment Zone Tax Abatement
Policy and Basic Incentives.
DISCUSSION:
5th Street Studios LLC (Property Owner), is the owner of the property described as Lots 5 and 6,
Block 16, Van Zandt's 2nd Addition, an Addition to the City of Fort Worth, Tarrant County, Texas,
according to the plat recorded in Volume 106, Page 118, Plat Records, Tarrant County Texas, 2817
West 5th Street, Fort Worth, Texas. The property is located within the Trinity Park Neighborhood
Empowerment Zone (NEZ).
The Property Owner plans to invest an estimated amount of $337,896.00 to redevelop an existing
building into an establishment for artisans and light fabrication (Project). The Housing and Economic
Development Department reviewed the application and certified that the Project met the eligibility
criteria to receive a Municipal Property Tax Abatement. The NEZ Tax Abatement Policy and Basic
Incentives includes a five-year Municipal Property Tax Abatement on the increased value of
improvements to the qualified owner of any new construction or rehabilitation within the NEZ.
Upon execution of the Agreement, the total assessed value of the improvements used for calculating
municipal property tax will be frozen for a period of five years starting January 2014 at the estimated
pre-improvement value as defined by the Tarrant Appraisal District (TAD) in April 2013 for the
property as follows:
Pre-Improvement TAD Value of Improvements
Pre-Improvement Estimated Value of Land
Total Pre-Improvement Estimated Value
$ 10,124.00
$ 187,500.00
$ 197,624.00
The Municipal Property Tax Abatement on the improved value ot the Project after construction is
estimated in the amount of $2,889.01 per year for a total in the amount of $14,445.05 over the five-
year period. However, this estimate may differ from the actual tax abatement value, which will be
calculated based on the Tarrant Appraisal District appraised value of the property.
In the event of a sale of this property, the Tax Abatement Agreement may be assigned to an affiliate
without the consent of the City Council or to a new owner with City Council approval, only if the new
owner meets all of the eligibility criteria as stated in the NEZ Tax Abatement Policy and Basic
Incentives.
This property is located in COUNCIL DISTRICT 9.
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/Account/Centers
FROM Fund/Account/Centers
Submitted for Citv Manager's Office bv:
Oriqinatina Department Nead:
Additional Information Contact:
ATTACH M E NTS
2817 West 5th Eievation.pdf
2817 West 5th St Map.pdf
Current Elevation.pdf
Fernando Costa (6122)
Jay Chapa (5804)
Cynthia Garcia (8187)
Sarah Odle (7316)
Page 2 of 2