HomeMy WebLinkAboutContract 57135 C1 e Y SECRETARY �7
r NTRAC NO. �J _
�EU,�%MATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD
DEB 15 2022
EMPOWERMENT ZONE
2740 Lipscomb 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 David Cooke, its duly authorized City
Manager, and STLMP, LLC, ("Owner") of property located at 2740 Lipscomb Street, Lots 13
through 17, Block 7, South Hemphill Heights Addition, an addition to the City of Fort Worth, Tarrant
County, Texas, according to the Plat thereof recorded in Volume 106, Page 132, Plat Records,
together with that portion of Cantey Street and Lipscomb Street conveyed to Mrs. J.J. Nutt and Mrs.
Lillian B. Howry by the City of Fort Worth in Deed dated 03/28/1966 and recorded in Volume 4200,
Page 539,Real Property Records, Tarrant County.
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. On January 29, 2019 the Fort Worth City Council adopted Ordinance No. 23552
(the "Ordinance") establishing "Neighborhood Empowerment Reinvestment Zones No.1R
through 611" City of Fort Worth, Texas (the "Zones") and adopted Resolution No. 5042
establishing "Designation of the Neighborhood Empowerment Zone Areas One through Six" (the
"NEZ").
B. Owner owns certain real property located entirely within Zone 6R and that is more
particularly described in Exhibit "I", attached hereto and hereby made a part of this Agreement
for all purposes (the "Premises").
C. Owner or its assigns plan to construct the Required Improvements, as defined in
Section 1.1 of this Agreement, on the Premises (the "Project").
D. On April 7, 2021, Owner submitted an application for tax abatement to the City
concerning the Premises (the "Application"), attached hereto as Exhibit "2" and hereby made a
part of this Agreement for all purposes.
E. The contemplated use of the Premises, the Required Improvements and the 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.
F. 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:
OFFICIAL RECORD
Page 1 of 13 CITY SECRETARY(
NEZ Tax Abatement with STLMP, LLC, 2740 Lipscomb Street ET WORTH..TX
Approved by M&C 21-0711,November 9, 2021
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 interior and exterior remodel of an existing commercial
building of approximately 22,580 total square feet for use as an a Shopping Center with office
and retail space and having Construction Costs, excluding land, upon completion of
$878,438.00 including site development costs (collectively, the "Required Improvements")
but such Construction Costs shall be reduced by any construction cost savings. The type,
number and details of the Required Improvements are described in Exhibit "3". After
construction of the Required Improvements is complete Owner shall provide a copy of the
final construction invoices to City. The invoices shall then be attached and made a part of this
Agreement and shall be labeled Exhibit"4". 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 Exhibit "3" 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"3".
1.2. Construction Costs.
"Construction Costs" shall mean site development costs (including demolition and
environmental abatement), hard construction costs; contractor fees; engineering fees;
architectural fees; design and consulting fees; and development fee and permitting fees
expended by Owner directly in connection with construction of the Required Improvements.
The City recognizes that Owner will request bids and proposals from various contractors in
order to obtain the lowest reasonable price for the cost of the Required Improvements. In
the event that bids and proposals for the Required Improvements are below $878,438.00 in
Construction Costs for work substantially the same as that provided in Exhibit "3" and
otherwise described in this Agreement, the City will meet with Owner to negotiate in good
faith an amendment to this Agreement so that Owner is not in default for its failure to
expend at least $878,438.00 in Construction Costs, with the understanding that the City's
staff will recommend, but cannot guarantee, approval of such amendment by the City
Council. The final site plan shall be in substantially the same form as the site plan submitted
and attached as Exhibit "3". Minor variations, and more substantial variations if approved
in writing by both 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"3".
1.3. Completion Date of Required Improvements.
Owner covenants to complete construction of all of the Required Improvements by
November 9, 2023, (the "Completion Deadline"). The abatement will automatically terminate
two years after Council approval if the Required Improvements are not complete. The
Required Improvements shall be deemed complete upon the issuance of a final certificate of
f Page 2 of 13
NEZ Tax Abatement with STLMP, LLC, 2740 Lipscomb Street
Approved by M&C 21-0711,November 9, 2021
occupancy for the Required Improvements by the Development Services Department. If the
Owner fails to expend at least Eight Hundred Seventy Eight Thousand, Four Hundred Thirty
Eight Dollars ($878,438.00) 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.
1.4. Use of Premises.
Owner covenants that the Required Improvements shall be constructed and the
Premises shall be continuously used as a shopping center with office and retail space, and in
accordance with the description of the Project set forth in the Exhibit "3". 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 Required Improvements over their values as determined
by TAD in November 2021, and this amount is $447,653.00:
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.
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.
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NEZ Tax Abatement with STLMP, LLC, 2740 Lipscomb Street
Approved by M&C 21-0711,November 9, 2021
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 Required
Improvements over its value in November 2021,up to a maximum of$1,317,657.00. In other
words,by way of example only, if the increase in value of the Required Improvements over its
value in November 2021, in a given year is $1,400,000.00, Owner's Abatement for that tax
year shall be capped and calculated as if the appraised value of the Required Improvements for
that year had only been$1,317,657.00.
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 (51h) 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
("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
I and Owner shall provide access to the Premises in order for the City to inspect the Premises
and evaluate the Required Improvements to ensure compliance with the terms and conditions
of this Agreement. Owner shall cooperate fully with the City during any such inspection
and/or evaluation.
3.2. Audits.
The City shall have the right to audit at the City's expense the financial and business
records of Owner that relate to the Project and Abatement terms and conditions
(collectively, the "Records") at any time during the Compliance Auditing Term in order to
determine compliance with this Agreement and to calculate the correct percentage of
Abatement available to Owner. Owner shall make all applicable Records available to the
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NEZ Tax Abatement with STLMP, LLC, 2740 Lipscomb Street
Approved by M&C 21-0711,November 9, 2021
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.
Owner must also provide documentation of compliance to Tarrant Appraisal District
(TAD) each year of the abatement by filling out and returning Tax Abatement Form 50-
116 from the TAD website no later than April 301h for each year Owner is requesting tax
abatement.
Failure to provide all information within the control of Owner required by this Section 3.3
shall constitute an Event of Default, as defined in Section 4.1.
3.4. Determination of Compliance.
On or before August 1 of each year during the Compliance Auditing Term, the City
shall make a decision and rule on the actual annual percentage of Abatement available to
Owner for the following year of the Term and shall notify Owner of such decision and
ruling. The actual percentage of the Abatement granted for a given year of the Term is
therefore based upon Owner's compliance with the terms and conditions of this Agreement
during the previous year of the Compliance Auditing Term.
4. EVENTS OF DEFAULT.
4.1. Defined.
Unless otherwise specified herein, Owner shall be in default of this Agreement if(i)
Owner fails to construct the Required Improvements as defined in Section 1.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 and/or contest of
any such ad valorem real property or tangible personal property taxes or (iii) OWNER DOES
NOT COMPLY WITH CHAPTER 7 AND APPENDIX B OF THE CODE OF
ORDINANCE OF THE CITY OF FORT WORTH (collectively, each an "Event of
Default").
4.2. Notice to Cure.
Subject to Section 5, if the City determines that an Event of Default has occurred, the
City shall provide a written notice to Owner that describes the nature of the Event of Default.
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NEZ Tax Abatement with STLMP, LLC, 2740 Lipscomb Street
Approved by M&C 21-0711,November 9, 2021
Owner shall have sixty (60) calendar days from the date of receipt of this written notice to
fully cure or have cured the Event of Default. If Owner reasonably believes that Owner will
require additional time to cure the Event of Default, Owner shall promptly notify the City in
writing, in which case (i) after advising the City Council in an open meeting of Owner's
efforts and intent to cure, Owner shall have ninety (90) calendar days from the original date of
receipt of the written notice, or (ii) if Owner reasonably believes that Owner will require more
than ninety (90) days to cure the Event of Default, after advising the City Council in an open
meeting of Owner's efforts and intent to cure, such additional time, if any, as may be offered
by the City Council in its sole discretion.
4.3. Termination for Event of Default and Payment of Liquidated Damages.
If an Event of Default, which is defined in Section 4.1, has not been cured within the
time frame specifically allowed under Section 4.2, the City shall have the right to terminate
this 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. Notwithstanding anything herein to the contrary, damages due under this paragraph
shall be the sole responsibility of Owner or its permitted assignee, as applicable.
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.
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NEZ Tax Abatement with STLMP, LLC, 2740 Lipscomb Street
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4.5. Sexually oriented Business & Liquor Stores or Package 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.
Owner may assign this Agreement and all or any portion of the benefits provided hereunder
to STLMP, LLC, or an Affiliate without the consent of the City, provided that (i) prior to or
contemporaneously with the effectiveness of such assignment, Owner 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 Owner under this Agreement. For purposes of this Agreement, an "Affiliate" means
all entities, incorporated or otherwise, under common control with Owner, controlled by Owner or
controlling Owner. For purposes of this definition, "control" means fifty percent (50%) or more of
the ownership determined by either value or vote. Owner 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 meeting the terms and conditions of this
Agreement and (ii) the proposed assignee agrees in writing to assume all terms and conditions of
Owner under this Agreement. Any attempted assignment without the City Council's prior written
consent shall constitute grounds for termination of this Agreement and the Abatement granted
hereunder following ten (10) calendar days of receipt of written notice from the City to Owner.
6. NOTICES.
All written notices called for or required by this Agreement shall be addressed to the
following, or such other party or address as either party designates in writing, by certified mail,
postage prepaid, or by hand delivery:
City: Owner:
City of Fort Worth STLMP, LLC
Attn: City Manager Attn: Cameron Mitchell
200 Texas 2120 Mistletoe Blvd., Suite 4
Fort Worth, TX 76102 Fort Worth, TX 76110
and
Neighborhood Services Department
Attn: Director
200 Texas
Fort Worth, TX 76102
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NEZ Tax Abatement with STLMP, LLC, 2740 Lipscomb Street
Approved by M&C 21-0711,November 9, 2021
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"3", the body of
this Agreement shall control. As of November 9, 2021, 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.
7.5. City Council Authorization.
This Agreement was authorized by the City Council through approval Mayor and
Council Communication No. 21-0711 on November 9, 2021, 2021, 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.
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NEZ Tax Abatement with STLMP, LLC, 2740 Lipscomb Street
Approved by M&C 21-0711,November 9, 2021
7.7. Owner Standing.
Owner shall be deemed a proper and necessary party in any litigation questioning or
challenging the validity of this Agreement or any of the underlying laws, ordinances,
resolutions, or City Council actions authorizing this Agreement and Owner shall be entitled
to intervene in any such litigation.
7.8. Venue and Jurisdiction.
This Agreement shall be construed in accordance with the laws of the State of Texas
and applicable ordinances, rules, regulations, or policies of the City. Venue for any action
under this Agreement shall lie in the State District Court of Tarrant County, Texas. This
Agreement is performable in Tarrant County, Texas.
7.9. Severability.
If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be
affected or impaired.
7.10. Headings 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.
I
This Agreement, including any exhibits attached hereto and any documents
incorporated herein by reference, contains the entire understanding and agreement between
the City and Owner, their assigns and successors in interest, as to the matters contained
herein. Any prior or contemporaneous oral or written agreement is hereby declared null and
void to the extent in conflict with any provision of this Agreement. This Agreement shall
not be amended unless executed in writing by both parties and approved by the City
Council. This Agreement may be executed in multiple counterparts, each of which shall be
considered an original, but all of which shall constitute one instrument.
(REMAINDER OF PAGE INTENTIONALLY BLANK)
Page 9 of 13
NEZ Tax Abatement with STLMP, LLC, 2740 Lipscomb Street
Approved by M&C 21-0711,November 9, 2021
CITY OF FORT WORTH: STLMP,LLC
A Texas limited liability company
By: By:
Fernando Costa Name Cameron Mitchell
Assistant City Manager _ Title: Manager
Gti.v • ~iM1�
ATTEST
By:
it Secretary .•
Jannette Goodall
APPROVED AS TO FORM AND LEGALITY:
By; I&U," I W
Melinda Ramos
Sr. Assistant City Attorney
M& C: 21-0711
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Fernando Costa,
Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation, known to me to
be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged
to me that the same was the act of the said CITY OF FORT WORTH, TEXAS, a municipal
corporation, that he was duly authorized to perform the same by appropriate resolution of the City
Council of the City of Fort Worth and that he executed the same as the act of the said City for the
purposes and consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this lvlk day of
2021.
��,� SELENA ALA
P BC y State of Texas
_=o:• _Notar Public,
otar Public in and for - Fw: Comm. Expires 03-31-2024
the State of Texas °% ;`;�� Notary ID 132422528
OFFICIAL RECORD
CITY SECRETARY
Page 10 of 13 ET WORTH,TX
NEZ Tax Abatement with STLMP, LLC, 2740 Lipscomb Street
Approved by M&C 21-0711,November 9, 2021
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Cameron Mitchell,
Manager of STLMP, LLC, known to me to be the person whose name is subscribed to the foregoing
instrument, and acknowledged to me that he executed the same for the purposes and consideration
therein expressed, in the capacity therein stated and as the act and deed of STLMP, LLC.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this A" `d"ay of
021.
Nota ublic in for ►a: SAfiAH J ODLE
The State of Texa = r:` too+a v ID#6215320
� `. N.; a rissslon Expires
�rr November 8,2023
�o$lY PUe' SARAH J ODLE
=�r Notary ID#6215320
My Commission Expires
NgTE.OF t�`+e November 8,2023
EOFFICIAL RECORDCRETARY!®�E7p�/e
Page 11 of 13
NEZ Tax Abatement with STLMP, LLC, 2740 Lipscomb Street
Approved by M&C 21-0711,November 9, 2021
Exhibit 1: Property Description
Exhibit 2: Application: (NEZ) Incentives and Tax Abatement
Exhibit 3: Project description
Exhibit 4: Final Construction Invoices (to be attached after construction)
Page 12 of 13
NEZ Tax Abatement with STLMP, LLC, 2740 Lipscomb Street
Approved by M&C 21-0711,November 9, 2021
Exhibit 1
Property Description
2740 Lipscomb Street, Lots 13 through 17, Block 7, South Hemphill Heights Addition, an
addition to the City of Fort Worth, Tarrant County, Texas, according to the Plat thereof
recorded in Volume 106, Page 132, Plat Records, together with that portion of Cantey
Street and Lipscomb Street conveyed to Mrs. J.J. Nutt and Mrs. Lillian B. Howry by the
City of Fort Worth in Deed dated 03/28/1966 and recorded in Volume 4200, Page 539,
Real Property Records,Tarrant County.
Exhibit 2
FORT WORTH.,
Application# NZ21-00428
City of Fort Worth
Neighborhood Empowerment Zone (NEZ) Application for Incentives
Property
Owner/Developer STLMP, LLC
Last First M.I.
Address: 2120 Mistletoe Blvd, Ste 4 Fort Worth TX 76110
Street Address City State Zip
Phone: 817-371-7022 Email: mitchell@mitchellprop.com
Contact: Mitchell Cameron A
(If different) Last First M.I.
Phone: 817-371-7022 Email: mitchell@mitchellprop.com
11000"M e o
NEZ certifications are project and owner specific.Please describe your project:Commercial Remodel
Project Type
❑ ❑ ® ❑ ❑ ❑
Single Family Multi-Family Commercial Industrial Community Facilities Mixed-Use
*Please be advised if the project address is zoned as a designated historical property(HQ and your project consists of new
construction or exterior renovations,approval of your project is required prior to NEZ application submittal. Written approval from
the Historic and Cultural Landmarks Commission(HCLC)must be attached to the NEZ application. For questions or further
information concerning historic projects,please contact the HCLC at(817)392-8000x
Project Address: 2740 Lipscomb St.
Street Address
Legal Description: Lot 13 to 17&9.8' E5.8' Block 7 South Hemphill Heights Addn
Lot Block Addition
YES NO YES NO
New Construction I Addition: ❑ X❑ Remodel/Rehab: X❑ ❑
Total New Sq.Ft. 0 Total Development Cost: $875,000
For a single family project,will the NEZ certified property be occupied by YES NO
the property owner as a primary residence? ❑ ❑
If you selected No,please specify if this property will be sold to a homeowner as a primary residence or used as rental
property.
If your project is a Commercial or Mixed Use project,please list all specific uses that are being proposed:
Commercial-General office and light retail
YES NO
Do you wish to apply for a Municipal Property Tax abatement for this project? ® ❑
If the above answer is yes,please contact the City of Fort Worth Neighborhood Services Department at(817)392-7316 or
visit http://fortworthtexas. og v/neijzhborhoods/NEZ/for additional information.Tax Abatements are processed after NEZ project
certification and must go before the City Council for a vote.House Bill 3143 took effect on September 1,2019,which
requires at least 30 days advance notice be given of the tax abatement.Due to compliance with HB 3143,the minimum time
to process a tax abatement to be on the City Council agenda for vote is 12 to 14 weeks after the date of certification.
Applicants requesting tax abatement may not submit for a building permit until the abatement has been approved by the City
Council and the applicant has signed a contract.
Revised 10/16/19 SO
FORT WORTH,
Application#
City of Fort Worth
Neighborhood Empowerment Zone (NEZ) Application for Incentives
YES NO
Do you wish to apply for a release of NEZ Policy eligible City liens? ❑ �]
Weed,Paving,Demolition and Board Up/Open Structure liens may be released for qualifying projects.
Zdning Office Use •
YES NO
Will a Zoning Change application be necessary for this project? ❑
Current Zoning: ❑ [ Proposed Use: Office/Retail
Signature of Zoning Staff: dmvle l Ayleo,� Date: May 13th 2021
PLEASE INITIAL NEXT TO EACH STATEMENT
(AM understand that my application MJ11 not be processed if it is incomplete.I agree to provide any additional information
for determining eligibility as requested by the City.If the additional information is not submitted within 30 clays,the application
will be denied and application fees paid will not be reimbursed.
Alvl I hereby certify that the information provided is true and accurate to the best of my knowledge.
AM I hereby certify that all documents and information required by the Application Submittal Checklist is attached.
CAM _I hereby acknowledge that I have read the NEZ Basic Incentives and Tax Abatement Policy,which governs the granting
of tax abatements,fee waivers and release of City liens, and that any VIOLATION of the terms of the NEZ Basic Incentives
or MISREPRESENTATION shall constitute grounds for rejection of an application or termination of incentives at the
discretion of the City.
,_/ Vm I understand that the approval of fee waivers and other incentives shall not be deemed to be approval of any aspect of
the project, I understand that I am responsible for obtaining required permits and inspections from the City and in ensuring the
project is located in the correct zoning district.
nM I understand that if there are taxes due or liens against any property I own in the City of Fort Worth I may not be
eligible for NEZ incentives.
CAM I hereby certify that the project plans submitted with this application meet the NEZ design guideline requirements as
listed below or meet Strategic Plan guidelines for the BerrvhilbMason Heights Oakland Corners and Stop Sir areas as
outlined on the NEZ webva.2e.I understand that if the project plans do not meet these design requirements,all permits will be
put on hold pending correction. If I choose to relinquish my NEZ certification instead of meeting the design requirements,
payment for all fees waived by the City up to that point will be due immediately and the building permit will not be issued until
payment is made.
a.No metal buildings except for industrial projects,
b.All new construction projects must contain 70%masonry product
c.Exceptions to the masonry product will be made at the City's discretion for design district overlays(where applicable)
and approved planned development projects.
d.Compliance with NEZ design guidelines for Council adopted NEZ Strategic Plans (BerryhilUMason Heights,
Oakland Corners and Stop Six)is required for certification.
e.Attached garages for new single family homes may not extend more than 4 feet past the front building wall.
MW I understand that I must pay all associated fees at the time of project application and/or permit submittal if I wish to
submit permits prior to determination of NEZ eligibility.Tlus includes setting up an escrow account with the City.I understand
that some permits may not be issued while NEZ eligibility is being shed.Example:Applications that are requesting Tax.
Abates nt.
LGYK e-~ I/Yl`�v'ki
Printed Name of Property 'Signature of Property Date
Owner/Developer Owner/Developer
Revised 10/16/19 80
FORT WORTH
Application#
City of Fort Forth
Neighborhood Empowerment Zone NEZ Application for Incentives
Please submit your completed application in person to:
City of Fort Worth Planning and Development Department
200 Texas Street,Fort Worth,Texas 76102
To apply online please go to: httu://fortwortliMus.Lrov/neiEhborhoods/NEZ/aaply
For more information on the NEZ Program Incentives,please visit our web site
at hU://fortworthtnas ov/nei h-borhoods/N or contact our office at(817)392-7744 or , NSgfortworthtexas.gQv_
For more information on Tax Abatements,see the above website or contact the
Neighborhood Services Department at(817)392-7316.
Revised 10/16/19 SO
Exhibit 3
Project Description
Full interior remodel and partial exterior remodel.
Interior:
-Demo the interior including removing existing plumbing and electrical.
-Divide building into 5 individual lease spaces each with a restroom.
-Install new plumbing and electrical for entire building.
Exterior:
-Repair exterior damage and remove garage style doors and boarding.
-Install exterior glass doors and windows for each space.
-Replace exterior with stucco and brick and paint exterior.
I
M&C Review
official site of the CItY of Fort W th Te
ffiftff
CITY E;�rQUNCIL AGENDI4 Fo �_
Crete "4eWFrQs*:This C
DATE: 9/21/2021 REFERENCE NO.: M&C 21-0711 LOG NAME: 192740LIPSCOMB
CODE: C TYPE: NON-CONSENT PUBLIC HEARING: NO
SUBJECT: (CD 9) Authorize Execution of a Five-Year Tax Abatement Agreement with STLMP,
LLC for the Rehabilitation of a One Story Commercial Building for use as a Shopping
Center with Office and Retail Space, with a total of Approximately 22,580 Square Feet,
Having a Cost of at Least $878,438.00 on Property Located at 2740 Lipscomb Street
in Neighborhood Empowerment Zone and Reinvestment Zone Area Six (Continued
from Previous Meeting)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a Five-Year Tax Abatement
Agreement with STLMP, LLC for the rehabilitation of a one story commercial building for use as a
shopping center with office and retail space, with a total of approximately 22,580 square feet,
having a cost of at least $878,438.00 on property located at 2740 Lipscomb Street in Neighborhood
Empowerment Zone and Reinvestment Zone Area Six, in accordance with the Neighborhood
Empowerment Zone Tax Abatement Policy and Basic Incentives.
DISCUSSION:
STLMP, LLC, (Property Owner) is the owner of the property described as Block 7, Lots 13 through
17, South Hemphill Heights, an addition to the City of Fort Worth, Tarrant County, Texas according
to the plat recorded in Volume 106, Page 132, Plat Records, together with that portion of Cantey
Street and Lipscomb Street conveyed to Mrs. J.J. Nutt and Mrs. Lillian B. Howry by the City of Fort
Worth in Deed dated 03/28/1966 and recorded in Volume 4200, Page 539, Real Property Records,
Tarrant County, Texas at 2740 Lipscomb Street, Fort Worth, Texas. The property is located within
the South Hemphill Heights neighborhood and Neighborhood Empowerment Zone Area Six (NEZ).
The Property Owner plans to invest an estimated amount of$878,438.00 for the rehabilitation of a
commercial building which is approximately 22,580 square feet for use as a shopping center with
office and retail space (Project). The Neighborhood Services Department reviewed the application
and certified that the Property Owner and Project met the eligibility criteria to receive a NEZ
Municipal Property Tax Abatement. The NEZ Basic Incentives 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 2021 at
the estimated pre-improvement value, as defined by the Tarrant Appraisal District (TAD) in 2019,
as follows:
Pre-Improvement TAD Value of Improvements $447,653.00
Pre-Improvement Estimated Value of Land $102,347.00
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=29259&councildate=9/21/2021[1/27/2022 1:43:42 PM]
M&C Review
Total Pre-Improvement Estimated Value ��$550'000.00
The municipal property tax on the improved value of Project after completion is estimated in the
amount of$6,434.56 per year for a total amount of$32,172.80 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.
The Tax Abatement Agreement may be assigned to an affiliate of the property owner without the
consent of the City Council. If the property is sold to a new owner, other than an affiliate, the
Agreement may be assigned only with City Council approval and provided that 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.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon approval of the Tax Abatement Agreement, a loss of an
estimated $32,172.80 in property tax revenue may occur over the five-year period. This reduction
in revenue will be incorporated into the long term financial forecast upon the Tax Abatement being
officially granted.
TO
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID Year (Chartfield 2)
FROM
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID Year (Chartfield 2)
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Victor Turner(8187)
Additional Information Contact: Sarah Odle (7316)
ATTACHMENTS
Current Condition,odf (Public)
Map for Council 2740 Lipscomb St pdf (Public)
NZ21-00428 Form 122Udf (CFW Internal)
Proposed Redevelo m nt orf (Public)
http://apps.cfwnet.org/council_packet/mc review.asp7ID=29259&councildate=9/21/2021[1/27/2022 1:43:42 PM]
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