HomeMy WebLinkAboutContract 57136 CITY SECRETARY
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TAX-ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD
EMPOWERMENT ZONE
FfIRTtgpq`nl 3113 Wayside Avenue
R�A11Y
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 RAIMG, LLC, ("Owner") of property located at 3113 Wayside Avenue, Lot 4, Block
5, Byers and McCart Addition, an addition to the City of Fort Worth, Tarrant County, Texas,
according to the Plat thereof recorded in Volume 310,Page 27, Plat Records of 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 NoAR
through 6R" City of Fort Worth, Texas (the "Zones") and adopted Resolution No. 5042
establishing "Designation of the Neighborhood Empowerment Zone Areas One through Six" (the
"NEZ").
B. Owner owns certain real property located entirely within Zone 6R and that is 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 June 28, 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:
OFFMAL RECORD
COTY SECRETARY
FT. WORTH,TX
Page 1 of 13 ,
NEZ Tax Abatement with RAIMG, LLC, 3113 Wayside Avenue
Approved by M&C 21-0663, October 19, 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 a two-story mixed-use building with first floor office space and
two second floor apartments, having a total of approximately 3718 square feet and
Construction Costs, excluding land, upon completion of $691,083.00 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 $691,083.00 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 $691,083.00 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"311
.
1.3. Completion Date of Required Improvements.
Owner covenants to complete construction of all of the Required Improvements within
two years from the date of Council approval of the tax abatement. The abatement will
automatically terminate two years after Council approval if a building permit has not been
pulled and a foundation has not been poured, unless delayed because of force majeure, in
which case the two-years shall be extended by the number of days comprising the specific
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NEZ Tax Abatement with RAIMG, LLC, 3113 Wayside Avenue
Approved by M&C 21-0663, October 19,2021
force majeure. For purposes of this Agreement, force majeure shall mean an event beyond
Owner's reasonable control, including, without limitation, delays caused by adverse weather,
delays in receipt of any required permits or approvals from any governmental authority, or
acts of God, fires, strikes, national disasters, wars, riots and material or labor restrictions, and
shortages as determined by the City of Fort Worth in its sole discretion, which shall not be
unreasonably withheld,but shall not include construction delays caused due to purely financial
matters, such as,without limitation, delays in the obtaining of adequate financing.
1.4. Use of Premises.
Owner covenants that the Required Improvements shall be constructed and the
Premises shall be continuously used as a two-story mixed-use building with first floor office
space and two second floor apartments, 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 September 2021, and this amount is $0.00:
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 RAIMG, LLC, 3113 Wayside Avenue
Approved by M&C 21-0663, October 19, 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 December 2020, up to a maximum of$1,036,624.00. In other
words, by way of example only, if the increase in value of the Required Improvements over its
value in September 2021, in a given year is $1,100,000.00, 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$1,036,624.00.
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 (5th) 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
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 RAIMG, LLC, 3113 Wayside Avenue
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F
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 30th 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.
f 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 RAIMG, LLC, 3113 Wayside Avenue
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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 RAIMG, LLC, 3113 Wayside Avenue
Approved by M&C 21-0663, October 19, 2021
4.5. Sexually oriented Business & Liquor Stores or Packalle 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 RAIMG, 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 RAIMG, LLC
Attn: City Manager Attn: Alva Gutierrez
200 Texas 12008 Melissa Cove
Fort Worth, TX 76102 Newark, TX 76071
and
Neighborhood Services Department
Attn: Director
200 Texas
Fort Worth, TX 76102
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NEZ Tax Abatement with RAIMG, LLC, 3113 Wayside Avenue
Approved by M&C 21-0663, October 19, 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 October 19, 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
I 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. 21-0663 on October 19, 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 RAIMG, LLC, 3113 Wayside Avenue
Approved by M&C 21-0663, October 19, 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.
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 RAIMG, LLC, 3113 Wayside Avenue
Approved by M&C 21-0663, October 19, 2021
CITY OF FORT WORTH: RAIMG,LLC
A Texas limited liability company
By: By: `�` "
Ile
Fernando Costa Name: Alva E. Gutierrez
Assistant City Manager Title: Member
ATT 6.�- . d} - `A`.
B �, 'j • •�l yl�..
ity Secretary
APPROVED AS TO FORM AND LEGALITY:
BA
VVV
a Ramos
Sr. Assistant City Attorney
M & C: 21-0663
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 / day of
2021.
,�� SELENA ALA
otary Public in and for � '"` >;E f)3Notary Public, State 1 Texas
-y: r•�F Comm.Expires .3 -202a
the State of Texas "'�y'%o� :�r NOWY ID 132422628
UMCIAL RECORD
Page 10 of 13 MY SECRETARY
NEZ Tax Abatement with RAIMG, LLC, 3113 Wayside Ave uFt. WORTH,TX
Approved by M&C 21-0663, October 19, 2021 -r
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Alva E. Gutierrez,
Member of RAIMG, LLC, 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 RAIMG, LLC.
nG V N ER MY HAND AND SEAL OF OFFICE thisQ' day of
2021.
No ublic i or
The State of TeZ o�paY°� SARAH J ODLE
z Notary ID#6215320
N„ Q My Commission Expires
November S,2023
F41FR0AL RECORD
"(11V SECRETARY
r7t WORTH,TX
Page 11 of 13
NEZ Tax Abatement with RAIMG, LLC, 3113 Wayside Avenue
Approved by M&C 21-0663, October 19, 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 RAIMG, LLC, 3113 Wayside Avenue
Approved by M&C 21-0663, October 19, 2021
Exhibit 1
Property Description
3113 Wayside Avenue, Lot 4, Block 5, Byers and McCart Addition, an addition to the City
of Fort Worth, Tarrant County, Texas, according to the Plat thereof recorded in Volume
310,Page 27,Plat Records of Tarrant County.
4AT V�0 THa
Application#
City of F rt Worth
Neighborhood Empowerment Zo a(NEZ)Application for Incentives
Property / yl m e
Owner/Developer i !7
Last First M.I.
Address: /,J f c ro K /IJ¢wa El 7�e
StreetAddress City State Zip r
Phone: S77J`- S-9U• oL/,-/ mail: ASMQrQLaJ-QQA5,A 'A,+ ef" _C�^,�
CI
Contact: Aa4i t e AI
(If dfferent) Last First M.L
Phone: S7 3 S9 '1'Nr-( I mall:
NEZ certifications are project and owner specific.Please escribe your project: 4✓rM�i c./ haoCsU r .c zal
u r
Project 1 ❑ ❑ ❑
Single Family Multi-Family Commercial Ir dustrial Community Facilities Mixed-Use
*Please be advised if theproject address is zoned as a desig wated historical properly(HQ and your project consists of new
construction or exterior renovations,approval of your project is equired prior to NEZ application submittal:Written aonroval from
the Historic and OiltyralLandmar Commission L m b attacheEZ application. For questions or further
Information concerning historlc projects,Dlease contact the HCLC at(817)392-8000*
Project Address: 310 t-u&t1sW, AV-- .ForL W 0 jc- (e 1/d
StreetAddmss [� F�
Legal Description: q S 0� e4 �l
Lot Block V Addition
mpg NO YES 1O
New Construction/Addition: — Re odel/Rehab: ❑ �J�
Total New Sq.Ft. 3 7/ Tot kil Development Cost: b 0 3
For a single family project,will the NEZ certified properi y be occupied by YES N
the property owner as a primary residence? El 11
H 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,pl ase list all specific uses that are being proposed:
'GG q
Incontives
YES,NO
Do you wish to apply for a Municipal Property Tax abat meet for this project? ��`J ❑
If tho above answer is yes,please contact the City of Fort Worl i Neighborhood Services Department at(817)392-7316 or
visit htttro'//fortworthtex �ov/neighborhoods/NE7J for additio at 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 112019,which
requires at least 30 days advance notice be given of the tax batement.Due to compliance with Ht3 3143,the mmtm_am tt=e
to process a tax abatement to be on the City Council ageud for vote is 12 to 14 weeks after the date of certification.
ieants uesdn tax tentent maynot subn it for a ur permit until the abatement has b en to the Cl
Council and the aonitcant has sl aaed a contract
a.mud 101WO80
' QItT WORTHd
Application#_
City of rt Worth
Neighborhood Empowerment Zone(NEZ)Application for Incentives
YE�j NO
Do you wish to apply for a release of N);Z Policy eligible ity liens?
Weed,Paving,Demolition and Board Up/Open Structure li is may be released for qualifying projects,
For • • Office Use Only
YES NO
Will a Zoning Change application he necessary for this iJect? ❑ X0
Current Zoning:_BU CX-6 P rc posed Use:
Signature of Zoning Staff: Oigltallysig ed6yEvelyn Date:
Gvotvn\/�crv��o-i-
Date:2021. .2410:06:47-05'00'
'Acknowlodgernents
IXASIE INITIAL NEXT TO EACH STATEMENT
*,,understand that my application will not be processed if it is incomplete.I agree to provide any additional information
or determining eligibility as requested by the City.If the addit onal information is not submitted within 30 days,the application
wQW5 denied and application fees paid will not be reimburso 1.
I hereby certify that the information provided is true a td accurate to the best of my knowledge.
I hereby certify that all documents and information r uired by the Application 5ubnvttal Checklist is attached,
hereby acknowledge that I have read the NEZ Basic centives and Tax Abatement Policy,which governs the granting
of ax abatements,fee waivers and release of City liens,and I hat any VIOLATION of the terms of the NEZ Basic Incentives
or MISREPRESENTATION shall constitute grounds for njeotion of an application or termination of incentives at the
disc n of the City.
4hAnderstand that the approval of fee waivers and oth incentives shall not be deemed to be approval of any aspect of
pprjeZth 1 understand that I am responsible for obtaining re quired permits and inspections from the City and in ensuring the
;prZojeis cated in the correct zoning district.
I understand that if there are taxes due or liens agahist any property I own in the City of Fort Worth I may not be
eligi '�"or NEZ incentives.
hereby certify that the project plans submitted with is application meet the NEZ design guideline requirements as
listed below or meet &MIegic Plan eyidelinesr the Berr MMINason Heights, Oakland Corners and Stop Six areas as
outlined on the NEZ webnaQe,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 tt a City's discretion for design district overlays(where applicable)
and approved planned development projects.
dCompliance with NEZ design guidelines for Council adopted NEZ Strategic Plans (Betryhill/Mason Heights,
Oakland Corers and Stop Six)is required for cert' cation,
A shed garages for new single family homes may not extend more than 4 feet past the front building wall.
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.This I ncludes setting up an escrow account with the City.I understand
that some permits may not be issued while NEZ eligibility is t Bing established.Example:Applications that are requesting Tax
Abatement AVIM /� /r
LF [' f 7--2�
Printed Name of Property n re r Date
Owner/Developer QwnerANifeloptir
Revised 10118115 SO
Exhibit 3
Proiect Description
• New construction two-story mixed-use building with first floor office space and
two second floor apartments with a total of 3,718 square feet
• Apartments will be 1 Bedroom, 1 Bath with a fall kitchen, laundry closet, living
room and rear balcony.
• Office space will consist of reception/waiting area, four individual offices,
conference room,two bathrooms and break room with kitchenette.
• Exterior construction will be plaster stucco with acrylic finish coat and hardy
board siding. Second floor entry will have a metal canopy over the door.
I
I
City of Fort Worth, Texas
Mayor and council Communication
DATE: 09/14/21 M&C FILE NUMBER: M&C 21-0663
LOG NAME: 193113WAYSIDE
SUBJECT
(CD 9)Authorize Execution of a Five-Year Tax Abatement Agreement with RAIMG, LLC,for the Construction of a Two-Story Mixed-Use Building
Consisting of First Floor Office Space and Two Second Floor Apartments,with a Total of Approximately 3718 Square Feet,having a Cost of at
Least$691,083.00 on Property Located at 3113 Wayside Avenue in Neighborhood Empowerment Zone and Reinvestment Zone Six(Continued
from a Previous Meeting)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a five-year Tax Abatement Agreement with RAIMG, LLC,for the construction of a
two-story mixed-use building consisting of first floor office space and two second floor apartments,with a total of approximately 3718 square feet,
at a cost of at least$691,083.00 on property located at 3113 Wayside Avenue in Neighborhood Empowerment Zone and Reinvestment Zone Six,
in accordance with the Neighborhood Empowerment Zone Tax Abatement Policy and Basic Incentives.
DISCUSSION:
RAIMG, LLC(Property Owner)is the owner of the property described as Lot 4, Block 5, Byers and McCart Addition,an addition to the City of Fort
Worth,Tarrant County,Texas,according to the Plat thereof recorded in Volume 310,Page 27,Plat Records of Tarrant County,Texas at 3113
Wayside Avenue,Fort Worth,Texas.The property is located in Neighborhood Empowerment Zone(NEZ)Area Six.
The Property Owner plans to invest an estimated amount of$691,083.00 to construct a two-story mixed-use building with first floor office space
and two second floor apartments,having a total of approximately 3718 square feet(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 Tax Abatement Agreement(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 2023 at the estimated pre-improvement value,as defined by the Tarrant
Appraisal District(TAD)in 2021,after demolition of the existing building so the pre-improvement value for tax abatement purposes will be$0.00
Pre-Improvement TAD Value of Improvements $0.00
Pre-Improvement Estimated Value of Land $37,500.00
Total Pre-Improvement Estimated Value $37,500.00
The municipal property tax on the improved value of Project after construction is estimated in the amount of$5,062.18 per year for a total amount
of$25,310.90 over the five-year period. However,this estimate may differ from the actual tax abatement value,which will be calculated based on
the TAD appraised value of the property.
The Agreement may be assigned to an affiliate of the Property Owner without formal 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 final approval of the Tax Abatement Agreement,a loss of an estimated$25,310.90 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.
Submitted for City Manager's Office by: Fernando Costa 6122
I
Originating Business Unit Head: Victor Turner 8187
Additional Information Contact: Sarah Odle 7316
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