HomeMy WebLinkAboutContract 57140 Ol T Y SECRETARY
=N 1-MG 1 NO. 31A4P,—,_
TAB ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD
EMPOWERMENT ZONE
6501 Oak Grove Road
F6 F�O� (Building Three)
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 Jackson-Shaw/46Ranch, LLC, ("Owner") of property located at 6501 Oak Grove
Road, Abstract 1375, Tract 1C and a portion of Tract 1F, Shelby County School Land Survey, in the
City of Fort Worth, Tarrant County, Texas, as recorded in Volume 11676, Page 10, Official Records
of Tarrant County, Texas.
The City Council of the City of Fort Worth ("City Council") hereby finds and the City and
Owner hereby agree that the following statements are true and correct and constitute the basis upon
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 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 "l", 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 May 14, 2020, Owner submitted an application for tax abatement to the City
concerning the Premises (the "Application"), attached hereto as Exhibit "2" and hereby made a
part of this Agreement for all purposes.
E. The contemplated use of the Premises,the Required Improvements and the 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:
vi zo SECRETARY
li WORTH,TX
Page 1 of 13 _
NEZ Tax Abatement with Jackson-Shaw/46Ranch, LLC, 6501 Oak Grove Road
Approved by M&C 20-0619, October 20, 2020
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 industrial building for the distribution of retail goods and light
manufacturing; having Construction Costs, excluding land and interior finish out, upon
completion of $7,661,916.00including 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 fees 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 $7,661,916,00in
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 $7,661,916.00in 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 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 force majeure.
Page 2 of 13
NEZ Tax Abatement with Jackson-Shaw/46Ranch, LLC, 6501 Oak Grove Road
Approved by M&C 20-0619, October 20, 2020
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, 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 an industrial building for the distribution of retail
goods and light manufacturing and in accordance with the description of the Project set forth
in the Exhibit "T'. 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 July 2020, 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.
Page 3 of 13
NEZ Tax Abatement with Jackson-Shaw/46Ranch, LLC, 6501 Oak Grove Road
Approved by M&C 20-0619, October 20, 2020
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 July 2020,up to a maximum of$11,492,874.00. In other words,
by way of example only, if the increase in value of the Required Improvements over its value
in July 2020, in a given year is $12,000,000.00, 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$11,492,874.00.
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`h) 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 parry 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. The amount of the Abatement shall be adjusted if a Notice of Default as
outlined in Section 4 has not been cured by the Owner by the end of the Compliance Auditing
Page 4 of 13
NEZ Tax Abatement with Jackson-Shaw/46Ranch, LLC, 6501 Oak Grove Road
Approved by M&C 20-0619, October 20, 2020
Term. Owner shall make all applicable Records available to the City during normal business
hours 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.
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 1.1.; (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").
Page 5 of 13
NEZ Tax Abatement with Jackson-Shaw/46Ranch, LLC, 6501 Oak Grove Road
Approved by M&C 20-0619, October 20, 2020
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.
Owner shall have ninety(90)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 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 therefrom 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
Page 6 of 13
NEZ Tax Abatement with Jackson-Shaw/46Ranch, LLC, 6501 Oak Grove Road
Approved by M&C 20-0619, October 20, 2020
shall be no recapture of any taxes previously abated; and (iii) neither party shall have any
further rights or obligations hereunder.
4.5. Sexually oriented Business & Liquor Stores or Package Stores.
a. Owner understands and agrees 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 Jackson-Shaw/46Ranch,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 Jackson-Shaw/46Ranch, LLC
Attn: City Manager 4890 Alpha Road, Suite 100
200 Texas Dallas, Texas 75244
Fort Worth, TX 76102
and
Neighborhood Services Department
Attn: Director
200 Texas
Fort Worth, TX 76102
Page 7 of 13
NEZ Tax Abatement with Jackson-Shaw/46Ranch, LLC, 6501 Oak Grove Road
Approved by M&C 20-0619, October 20, 2020
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"T', the body of
this Agreement shall control. As of February 16, 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. 20-0619 on October 20, 2020, 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.
Page 8 of 13
NEZ Tax Abatement with Jackson-Shaw/46Ranch, LLC, 6501 Oak Grove Road
Approved by M&C 20-0619, October 20, 2020
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 Jackson-Shaw/46Ranch, LLC, 6501 Oak Grove Road
Approved by M&C 20-0619, October 20, 2020
CITY OF FORT WORTH: JACKSON-SHAW/46RANCH, LLC
A Texas limited liability company
By: Ls"••..,� L.v� By: AIT CAPITAL MANAGEMENT, LLC
Fernando Costa A Texas limited liability company,
Assistant City Manager its Manager
By.
Name: John Stone
Title: Vice President
ATTE ,.
ity Secretary 'L,
4
APPROVED AS TO FORM AND LEGALITY:
By: 6
Melinda Ramos
Sr. Assistant City Attorney
M & C: 20-0619
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 /5 day of
r , 2021.
w o SELENA ALA
i�
Notary Public, State of Texas
Notary Public in and for +` Comm. Expires 03-31-2024
the State of Texas '' 0;,;.�' Notary ID 132422528
F0F!F1(0AL RECORD
Page 10 of 13 CITY SECRETARY
NEZ Tax Abatement with Jackson-Shaw/46Ranch, LLC, 6501 Oak Grove R of T ` C)RTHs IrX
Approved by M&C 20-0619, October 20, 2020
STATE OF TEXAS §
COUNTY OF DALLAS §
BEFORE ME, the tndersigned authority, on this day personally appeared h n V+Ir•n[. ,
Vi Ge -Fr esiA of AIT Capital Management, 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 AIT Capital Management, LLC, Manager for Jackson-Shaw/46Ranch, LLC.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this �3 day of
0 , 2021.
IVIN1�1�
Notary Public in and for
The State of Texas
i,� HOW GRIER
� Notary Public,State of Texas
► � Comm.Expires 04-01-2025
Notary ID 2662155
Exhibit 1: Property Description OFFICIAL RECORD
CITY SECRETARY'
Exhibit 2: Application: (NEZ) Incentives and Tax Abatement FT.WORTH,TX
Page 11 of 13
NEZ Tax Abatement with Jackson-Shaw/46Ranch, LLC, 6501 Oak Grove Road
Approved by M&C 20-0619, October 20, 2020
Exhibit 3: Project description
Exhibit 4: Final Construction Invoices (to be attached after construction)
I
Page 12 of 13
NEZ Tax Abatement with Jackson-Shaw/46Ranch, LLC, 6501 Oak Grove Road
Approved by M&C 20-0619, October 20, 2020
Exhibit 1
Property Description
6501 Oak Grove Road, Abstract 1375, Tract I and a portion of Tract 1F, Shelby County
School Land Survey, in the City of Fort Worth, Tarrant County, Texas, as recorded in
Volume 11676,Page 10, Official Records of Tarrant County,Texas.
I
I
t
Exhibit 2
ORT WORT .
Application#
City of Fort Worth
Neighborhood Empowerment Zone(NEZ)Application for Incentives
Applicant Inforaiatioti
Property
Owner/Developer 9 U k ncl-,
Las! 110h
r t M..1.
Address: 49� D-1It,.s 12C hs�.y4
Street Ad Tess City estate Zip
Phone: C713—''to—9149 Email: ann..�Sti» u`7 rat �nsa'.n-- n-,
0
Contact: PAyW bra; E
(If different) Last First M.I.
Phone: 11z?63 4444 Email: tot o �� slnaw nor►
Project Information
NEZ cer ifications are project and owner specific.Ylcase describe your project: 3 t 'a r. 'VC L4wsM14
d ever• Mt,+�
Project Type
❑ ❑ ❑ Al' ❑ ❑
Single Family Multl-Family Commercial Industrial Community Facilities Mixed-Use
`"Please be advised If lite project address Is zoned as a designated hisforicai proper0,(11C)and your project consists of nelp
canstrnctiat or etYerior renovations,approval ojyoarproject/s re0tr/net/prior to NEZ appl/cndon snhsdlMi WiWJ aPoroval&=
lire!listnrlc and Cahrrrnl Land�nnrks Connd/ssion fNCLC}fuss/Ge ndncheri to the NCZ annlicallad. For gdestlorrs or fndher
1►tforniallorr neerdlag itistorle projects,piense contact the HCLCut(817)397-8000*
Project Address: N�.t- 44OWSw El Sol &MORS D-6ft
Street Address
Legal Description:
Lot Block Addition
Y NO YES NO
New Construction/Additions K ❑ Remodel/Rehab: ❑
Total New Sq.Ft. 662,6ba Total Development Coati?0O/ •3P ;t
IX
For a single family project,will the NEZ certified property be occupied by YES NO
the property owner as it 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:
Yis,S NCB
Do you wish to apply for A Municipal Property Tax abatement for this project? W 1
If file above answer is yes,please contact the City of Fort Worth Neighborhood Services Department at(817)392-7316 or
visit hnptllfortworthtexas.ggvineiahborhog,d&tN for additional information.Tax Abatements are processed after NEZ project
certification and must go before the City Council for a vote.House Bill 3143 toolt effect on September 1,2019,which
requires at least 30 days advance notice be given of(lie tax ohntement.Due to compliance with HB 3143,the minimum time
1 to process n tax abatement to be on the City Council agenda for vote is 12 to 14 weeks after the state of certifnention.
Appl vans reatee. ine tar abatesteilt ndn#not ntbtdit for a building nernrll snit the abatement has been approved by file Clly
Co t+rcll alit/the pfrnllcalif has xirtned 0 contract.
ReAwd:aia:o 80
FORT W, RT
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? ❑ 9
Weed,Pawing,Demolition and Board Up[Open Structure liens may be released for qualifying projects.
Office-UseIlMoniind •
YES NO
Will a Zoning Change applicatioik be necessary for this project? Q
Current Zoning:. ropased se.
A
Signature of Zoning Staff: lJ' Date;,
^
nowlefteinehts
PLEASE INITIAL NEXT TO EACH STATE: E T
? I understand that my application l�1 ngI be processed if it is incomplete.I agree to provide any additional information
for determining eligibility as requested by the City.Ifthe additional information is not submitted within 30 days,the application
will be denied and application fees paid will not be reimbursed.
GLE—I hereby certify that the information provided is true and accurate to the best of my knowledge.
I hereby certify that all documents and information required by the Application Submittal Checklist is attached.
rV I hereby acknowledge that have read the NEZ Basic Incentives and Tax Abatement Policy,which govarns 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.
Q`F 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.
G? I understand that if there are taxes due or liens against any property'l own in the City of Fort Worth I may not be
eligible for NEZ incentives.
I hereby certify that the project.plans submitted with this application meet the NEZ design guideline requirements as
listed below or meet ,Strategic Plana ,guidelines for the Reh,yh1111Mason 11eights Oakland Corners and Stop Six areas as
outlined bri the NEZ xrebpa e,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 rnyNEZ certification instead of meeting the design requirements,
payment for all fees waived by the City up to that pointwill 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
o.Exceptions to the masonry product will be made at khe City's discretion for design district overlays(where applicable)
and approved planned development projects.
d.Compliance with NEZ design guidelines for Council adapted NEZ Strategic Plans (Berryhill/Mason Heights,
Oakland Corners arid Stop Six)is required for certification.
e.Attached garages for now single family homes may not extend more than 4 feet past the front building wall.
1 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 includes setting up an escrow account with the City,I understand
that some permits may not be issued while NEZ eligibility is bein fished.Example:Applications that are requesting Tax
`Abatement.
r1Gt�Sar. S��w �P ,j, LLC.
Printed Name of Property lgna of Property pate
Owner/Developer O er/Developer
Reyiaea lorierts so
Exhibit 3
Protect Description Building Three
• Industrial Warehouse building approximately 154,440 square feet.
• Front load configuration, 32' clear height
• ESFR Sprinkler system
• Concrete Tilt Wall construction with steel roof structure and textured
paint/stained concrete finish
• Office build out will be "build to suit"based on tenant need
City,of Fort Worth-File#:M&C 20-0619
Home Legislation Calendar City Council Departments
K3;IU[0 Share'.t�RSS I IL•Alerts i
Details Reports
File #: M&C 20-0619 Vplsinn: 1 Name:
Type: Award of Contract- Report of CM Status: Passed
File created: 8/27/2020 In control: CITY COUNCIL
On agenda: 10/20/2020 Final action: 10/20/2020
(CD 8)Authorize Execution of a Five-Year Tax Abatement Agreement with Jackson-Shaw/46 Ranch, LLC, for
the Construction of Three Industrial Warehouse Buildings with a Total of Approximately 562,000 Square
Title: Feet for the Distribution of Retail Goods and Light Manufacturing, Having a Cost of at Least$25,969,859.00
on Property Located at 6501 Oak Grove Road in the 46 Ranch Logistics Industrial Park and Within
Neighborhood Empowerment Zone and Reinvestment Zone Six(Continued from a Previous Meeting)
Attachments: 1. M&C 20-0619, 2.6501 Oak Grove Man for Council., 3. Building Plans for Council.pdf
History(2) Text
2 records Group Export
Date Ver. Action By Action Result Action Details Meeting Details Video
10/20/2020 1 CITY COUNCIL Approved Action details Meeting details Not available
9/1/2020 1 CITY COUNCIL Continued Action details Meeting details
https://foitworthgov.legistar.com/LegislationDetaii.aspx?ID=4625668&GUID=57B23D87-D2E4-4AE2-8310-A67OB4619B2A[10/23/2020 5:45:55 PM]
City of Fort Worth, Texas
Mayor and Council communication
DATE: 09/01/20 M&C FILE NUMBER: M&C 20-0619
LOG NAME: 19NEZ6501OAKGROVE
SUBJECT
(CD 8)Authorize Execution of a Five-Year Tax Abatement Agreement with Jackson-Shaw/46 Ranch, LLC,for the Construction of Three Industrial
Warehouse Buildings with a Total of Approximately 562,000 Square Feet for the Distribution of Retail Goods and Light Manufacturing,Having a
Cost of at Least$25,969,859.00 on Property Located at 6501 Oak Grove Road in the 46 Ranch Logistics Industrial Park and Within
Neighborhood Empowerment Zone and Reinvestment Zone Six
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a five-year Tax Abatement Agreement with Jackson-Shaw/46 Ranch, LLC,for
the construction of three industrial warehouse buildings with a total of approximately 562,000 square feet for the distribution of retail goods and
light manufacturing, having a cost of at least$25,969,859.00 on property located at 6501 Oak Grove Road in the 46 Ranch Logistics Industrial
Park and within Neighborhood Empowerment Zone and Reinvestment Zone Six,in accordance with the Neighborhood Empowerment Zone Tax
Abatement Policy and Basic Incentives.
DISCUSSION:
Jackson-Shaw/46 Ranch,LLC(Property Owner)is the owner of the property described as Abstract 1375,Tract 1 C and a portion of Tract 1 F,
Shelby County School Land Survey,in the City of Fort Worth,Tarrant County,Texas,as recorded in Volume 11676,Page 10,Official Records of
Tarrant County,Texas at 6501 Oak Grove Road,Fort Worth,Texas.The property is located in the 46 Ranch Logistics Industrial Park and within
Neighborhood Empowerment Zone(NEZ)Area Six.
The Property Owner plans to invest an estimated amount of$25,969,859.00 to construct three industrial buildings for the distribution of retail
goods and light manufacturing with a total of approximately 562,000 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 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 July
2020 the property as follows:
Pre-Improvement TAD Value of Improvements $0.00
Pre-Improvement Estimated Value of Land $310,850.00
Total Pre-Improvement Estimated Value $310,850.00
The municipal property tax on the improved value of Project after construction is estimated in the amount of$194,124.70 per year for a total
amount of$970,623.50 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 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 8.
FISCAL INFORMATION I CERTIFICATION:
The Director of Finance certifies that upon final approval of the Tax Abatement Agreement,a loss of an estimated$970,623.50 in property tax
revenue may occur over the next 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 bk Fernando Costa 6122
Originating Business Unit Head: Victor Turner 8187
Additional Information Contact: Sarah Odle 7316