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HomeMy WebLinkAboutContract 44351 CITY SECRETARY CONTRACT NO, TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD EMPOWERMENT ZONE 2736 Slandae Avenue This TAX ABATEMENT AGRE EMENT ("Agreement" s entered into by and between the CITE' OF FORT WORTH, TEXAS the "City"), a home rule municipal corporation organized under the laws of the State of Texas and acting by and through T.M. Higgins, its duly authorized City Manager, d Tenn R. and S,harleen K. Leim ael ("Owners"), owners of property located at 27316 Sanda e Avenue, Block 9 Lot 10. Fn'se , Heights Addition, in the City of:Fort Worth, Tarrant County, "texas, and as shown on the Plat recorded In volume 204A, Page 96, Deed Records, Warrant County, Texas. The City unell of the its of Fort vorth ""Clt 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-, As Chapter 378 of the Teas Local Government ent Code allows a municipality to create a. p (NEZ) if the municipality determines that the creation of Neighborhood. Empowerment done the zone would promote.- (1) The creation of affordable housing, including fact ,gyred.housing in the zone; (2) An increase in economic development in the zone-, (3) ikn increase in the quality of social services, education, or, public safety provided to residents of the zone, or (4) The rehabilitation of affordable housing in the zone. B. Chapter 378 of the Texas Local Government Code provides that a municipality that creates a NEZ, may enter into agreements abating muni cipal property taxes on property ire the zone, C. On ,duly 31, 2001, the City adopted basic incentives for property owners who own property located in a NEZ., stating that the City elects to be eligible to participate in tai: abatement and Including guidelines and criteria governing tax abatement agree en.ts entered into between the City and various third parties, titled "NEZ Basic Incentives",, these were readopted on February 5, 2013 (Resolution Cho. 4180)1. The February 5, 2013 NEZ Incentives are attached hereto as Exhibit"1"hereby made a part of the Agreement for all purposes. D. The NEZ Incentives contain appropriate guidelines and criteria governing tax abatement agreements to be entered into by the City as contemplated by Chapter 312 of the Texas Tax Code, as ended ("Code"). On February , 20,09, the City Council adopted Ordinance No., 15815 ("Ordm' ance"), establishing"Neighborhood Empowennent Reinvestment Zone No. 13," City of Fort Worth, Texas(""Zane,"). Owner owns certain real property located entirely within the nee University NEZ and that p "" "" y p this � ore particularly described �. Exhibit � , attached hereto and hereby made a Agreement for all purposes the "Pre s+ s")w OFFICIAL RECORD MAN CITY 3ECROMY P�C�NrD APR n w, o ffl-%, 11 G. Owner or its assigns plan to construct the Required Improvements, as defined in Section 1.1 V gi ('%, of this Agreement, on the Premises to be used as a singie-lamily residence that will be Owner occupied. H, On February 27, 20131, Owner submitted an application for NE Z incentives and for tax abatement to the City concerning the contemplated use of the Premises (the "Application"), attached hereto, as Exhibit "3"' and hereby made a part of this Agreement for all purposes. 1. The City Council finds that the contemplated use of the Premises, the Required Improvements, as defined in Section 1.1 and the terms ofd this Agreement are consistent with encouraging development of the Zone in accordance with the purposes for its creation and are in compliance with the NEZ Incentives, the Ordinance and other applicable laws, ordinances, rules and regulations. J* J1,1e terms of this Agreement, and the Premises and Required prow eats, satisfy the eligibility criteria of the NEZ Incentives. Ko Written notice that the City intends to enter into this Agreement, along with a copy of this Agreement, has been furnished in the manner prescribed by the Code to the presiding officers of the governing bodies of each of the taxing units in which the Premises is located. NOW, THEREFORE, the City and Owner, for and in consideration of the terms and conditions set forth herein, do hereby contract, covenant and agree as follows: 1. OWNER'S COVENANTS. 1.1. Real Property Improvements. Owner shall construct, or cause to be constructed, on and within the Premises certain improvements consisting of a single-family residence, of at least 2,663 square feet in size and built to the specifications listed in Exhibit "4" (collectively the "R I , 1 equired, Improvements"). Tarrant Appraisal District must appraise the property (improvements and land) within 10% of $262,000.0o. Owner shall provide, a survey of the home upon completion of the Required improvements. The parties agree that the final survey shall be a part of'this Agreement and shall 'be labeled Exhibit Minor variations and more substantial variations if approved in writing by both parties to this Agreement before construction is undertaken in the Required Improvements from, the description provided in the Application for Tax Abatement shall not constitute an Event of' Default, as defined in Section 4.1, provided that the conditions in the first sentence of this Section 1.1 are met and the Required Improvements are used for the purposes and in the manner described in.Exhibit "4". 1.2, CoMpledon Date of Reguired ern Rrove meats. Owner certifies that the Required Improvements will be completed within two years from the date of Council approval. 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. For purposes of this Agreement, force majeure shall mean an event beyond Owner's reasonable control as determined by the City of Fort Worth in its sole discretion, which shall not be unreasonably withheld, including, without limitation, delays caused by adverse weather, delays in receipt of any required permits, or approvals, from.any governmental authority, acts of God, or fires. Force majeure shall not include construction delays caused due to purely financial matters, such as, without limitation, delays in the obtaining of adequate financing. 1.3. Use of Pre nukes, Owner covenants that the Required Improvements, shall be used as rental property in accordance with the NFL; Incentives. In addition, Owner cover iants, that throughout, the Term, the Required Improvements shall be maintained for the purposes set forth in this Agreement. 2, ABATEMENT AMOUNTS,TERMS AND CONDITIONS. Subject to and in accordance with this Agreement, the City hereby grants to Owner a real property tax abatement of City of Fort Worth-imposed taxes on the Premises for the Required Improvements, as specifically provided in this Section 2 ("Abatement"). Abatement does not include taxes from other taxing entities., 2.1. 'JAmount of Abatement. The actual amount of the Abatement granted under this Agreement shall be based upon the increase in value of the Premises due to the Required Improvements, over its value on March 26, 2013, the year in which both parties executed this Agreement. 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, Owner shall not be eligible to receive any Abatement under this Agreement. 2.2 Increase M* Value, The Abatement shall be 100% of the increase in value from the construction of the Required Improvements and shall apply only to taxes on the 'increase in value of'the Premises due to construction of the Required Improvements. The Abatement shall not apply to taxes on the land, nor shall the abatement apply to mineral interests. 2.3. iTerm of Abatement. The to of the Abatement ( '"T"erm"') shall begin on January 1, of the year following the 0 calendar year in which the Required Improvement is completed ("":l eginni ng Date") and, unless sooner terminated as herein provided, shall end on December 31 inimediately preceding the fifth (5th) anniversary of the Beginning Diate. 2.4 Protests Over Appraisals, or Assessments. Owner shall have the right to protest and contest any or all appraisals or assessments of the 11 0 Premises an ct/or improvements thereon., 2.5. Abatement Application Fee. The City acknowledges receipt from Owner of the required Application fee of $100.00. The application fee shall not be credited or refunded to Owner or its assigns for any reason. 3, RECORDS,AUDITS AND EVALUATION OF MQUIRED, IMPROVEMENTS. 3,1. Ins pec"on of Premiseso Between the execution date of this Agreement and the last day of the Terri, at any time during normal office hours throughout the Term and the year following the Tenn 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. 31.2. Lertif cation. Owner shall certify annually to the City that it is in compliance with each applicable to of this Agreement. The City shall have the right to audit at the City's expense the Required improvement with respects, to the specifications listed in Exhibit "W". Owner must provide documentation that Owner is using the Required Improvements as rental property (collectively, the ine compliance wit "Records") at any time during the Compliance Auditing Term in order to determ* I this Agreement. Owner shall make all applicable Records available to the City on the Premises or at another location in the City following, reasonable advance notice by the City and shall otherwise cooperate fully with the City during any audit. 3.3 krovsion of`Information, On or before March I following the end of every year during the Compliance Auditing Tenn and at any other time 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. 1 In I In tre:d 'b:y this Section Failure to prov"de all - formation with" the control of O�wner requ 313 all constitute an Event of Default, as defied in Section 4.1. 3A deter mWan"'on of Compliance. On or before August I 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 ofthe 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 Ten-n. 4. EVENTS OF DEFAULT. 4.1. Deftned. Unless otherwise specified. herein, Owner shall be in default of this Agreement if(i) Owner fails to construct the Required Improvements as defined in S eiction I-I-- (ii) ad valorem real property taxes, with respect to, the Premises, or the Required Improvements, 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 tan ible personal roperty taxes; (iii) OWNER DOES NOT USE THE 91 p PREMISES AS PRIMARY RESIDENCE ONCE THE ABATEMENT BEGINS* or (iv) OWNER DOES NOT COMPLY WITH CHAPTER 7 AND APPENDIX B OF THE CODE OF ORDINANCES OF THE CITY OF FORT WORTH (collectively, each an "Event of Default"). 4.�2i. 'Notice to,Cure. Subject to Section 5, ifthe City detennines 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 sixty (6101) 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 (1) 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 no�tice, or (11) 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. lermm* ation for Event of'Default and Payment of Uqui-dated Damnes, If an Event of Default which is defined in Section 4.1 has, not been cured withinthe time frame spec,itica,-i I iy 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 (1) harm the City's economic development and redevelopment efforts on the Premises and *in the vicinity of the Premises; (11) 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 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 Cityin 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 thatthis Section 4.3 is intended to provide the City with compensation for actual damages and a 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 (601), days following the effective date of termination of'this, Agreement. In the event that all or any port*on 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(currently, Section 331.01 of the Code),. 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-, (11) there shall be no recapture of any taxes previously abated; and (iii.) neither party shall have any further rights or obligations hereunder. one Le 4.5 Sexual-al - nted business& iguor Stores or Packa2e Stores. a. Owner understands and agrees that the City has the right to terminate this i's agreement if the Required Improvements contains or will contain a sexually ny 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 Required Improvements, contains or will contain a liquor store or package store. 5, EFFECT OF SALE OF PREMISES, mom Except for an assignment to Owner's first mortgagee or to a homebuyer who will use the Required Improvements as rental property or the homeowner�s mortgagee which City Council hereby agrees to, the Abatement granted hereunder shall vest only in owner; however if Owner sells the Premises and Required 9 Improvements, this Abatement cannot be assigned to a new owner of all or any portion of the Premises and/or Required Improvements without the prior consent of the City Council, which consent shall not be unreasonably withheld provided that (i) the City Council finds that the proposed assignee is financially capable of meeting the terms, and conditions of this Agreement and (ii) the proposed purchaser agrees in writing, to assume all terms and conditions of Owner under this Agreement. Owner may not otherwise assign, lease or convey any of its rights under this Agreement. Any attempted assignment without the City Council's prior consent shall constitute grounds for termination of this Agreement and the Abatement granted hereunder following ten (1 0) calendar days of receipt of written notice from the City to Owner. Upon assignment to Owner,"s first mortgagee, or to a homebuyer who will use the Required Improvements as its primary residence or the homeowner's mortgagee, Owner shall have no further obligations or duties under this Agreement. In addition, upon assignment to any other entity with the written consent of City Council, Owner shall, have no further duty or obligation under this Agreement. N NO EVENT SHALL THE TERM OF THIS AGREEMENT BE EXTENDED IN THE EVENT OF A SALE OR ASSIGNMENT. THE FAILURE OF OWNER TO SEND THE CITY NOTIFICATION OF THE SALE OF THE REQUIRED IMPROVEMENTS AND EXECUTION OF THE ASSIGNMENT OF THIS AGREEMENT WITH THE NEW OWNER WITHIN 30 DAYS OF THE TRANSFER OF OWNERSHIP OF THE REQUIRED IMPROVEMENTS SHALL RESULT IN THE AUTOMATIC TERMINATION OF THIS AGREEMENT, THE, NOTICE AND EXECUTED ASSIGNMENT MUST BE SENT TO THE CITY'BY CERTIFIED, MAIL OR BY HAND DELI"VERY. 6. NOTICES, All written notices galled for or required by this Agreement shall be address o the following, or such other, party or address: as either party designates in writing, oy certified mail, postage prepaid, or by hand delivery: City: and Owner: City of Fort,Worth Housing& Economic Development Dept. Glenn R. Leirnbach Attn.- City Managerls Office Attn-. Jay Chapa, Director Sharlelen K. Leimbach 1000 roc Orton 1000 Throckmorton 14527 River Oads Fort Worth,Texas 761012 Fort Worth,Texas 76102 Colorado Springs, CO 921 7* MISCELLANEOUS0 7.1. Bonds The Required Improvements will not be financed by tax increment s. This Agreement is subject to the rights of holders of outstanding,bonds f`the City. 7.2, Conflicts of Interest. wwo" Neither the Premises nor any of the Required Improvements covered by this Agreement are owned or leased by any member of the City Council, an Zoning y member of the City Planning or Commission or any member of the governin o' y of any taxing units in the Zone. 7,3, Conflicts,Be twee ocuments. In the event,of any conflict between the City"si zoning ordin ono e,53,or other City ordinances or I such or -yulations shall control. In the event Of any regulations, and this Agreement, inances or 'reg 1 1 l conflict between the oocty of this Agreement and Exhibit, "3`11, the body of' this Agreement shal control. 7.4, Future Appficafion* A portion or all of the Premises on it Required Improvements may be eligible for complete or partial exemption from, ad valorein taxes as a result of existing, law or future le 'slation. This Agreement shall not be construed I 91 as ev*dence that such exemptions do not apply to the Premises and/or Required, Improvements. 7.5. C't 11 0 1 Wy Co,unc* Authoritzation, This Agreement was authorized by the City Council through approval of Mayor and Council Communication No. C-26173 March 26, 2013, which, among other things, authorized the City Manager to execute this Agreement on behalf of the City. 7.6. Estoppel Certificate. Any party hereto may request an estoppel certificate from another party hereto so long as the certificate is requested in connection with a bona fide business,purpose, The certificate, if requested, will be addressed to the Owner, and shall include, but not necessarily be limited t+ , 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 to of this Agreement, the levels and remaining, term of the .bate mentin effect, and such other matters,reasonably requested by the party or parties to receive the certificates. 7.7. weer Star Owner shall be deemed a proper and necessary party in any litigation questioning or gq inances, resolut' challien "ng the validity of this Agreement or any of the underlying, laws, ordi ioins or City Council actions authon*zing this Agreement and Owner shall be entitled to intervene in any such litigation. 7.8. venue and Jurl"Wictioll. 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 19. SeverabiR 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 Headm' 2s Not Contro Headings and titles used in this Agreement are for reference purposes, only and shall not be deemed apart of'this Agreement. 7.1 1, EnfiorEq. 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. [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.] EXECUTED this day of 20131 by the City of Fort Worth, Texas. u EXECUTED this ZY day of 4"Id, 2013,by Glenn R. Leimbach. EXECUTED this, OY day of iz, 12013, by Sharleen K. Leimbach. CITY OF FORT WORTH-.- OWNER. By: Byf- Fernando CoIsita G1 nn R. Le back Assistant City Manager Owner By-* Sharleen K. Leimbach 40I�1%46,4,I Owner 04;_Iq A ORS 0 Cv 1c) ................. ATTEST. By. "Ma"ry Ka 000I City Secretary APPROVED AS TO FORM AND, LEGALITY: By• _ Melinda Ramos Assistant City Attorney �L M & C-0 C-26173 FOFFICIAL RECORD' CITY SECRETARY Fts WORTF;TX STATE OF TEXAS § COUNTY OF'TAR RANT § 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 i's subscribed to the foregoing instrument, and acknowledged to me that the s 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., G EN UNDER MY HAND AND SEAL OF OFFICE this day of 2013. TW?a Public in a`nd for the State of Tex Notary's Printed Name EV'ONIA DMIELS MY COMMISSION EXPIRES July 10,2013 STATE OF TEXAS COUNTY TAR T BEFORE , the undersigned authority, on this day personally appeared Glee R. L eimbach, 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.. EN UNDER MY HAND AND SEAL OF OFFICE this day of 20 N tarp, u lic in and fo the Mate of Texas SARAH j.ODLE My CoMMISSION.M, ,2016, Notary's Printed Name STATE OF TEXAS COUNTY OF TARRANT BEFORE E, the undersigned authority, on this day personally appeared Shar cen K Leirnbach, known to me to, be the person whose name is subscribed to the foregoing instrument, and acknowledged ed. to e that she executed the same for the purposes and consideration therein expressed., in the capacity'therein stated. GIVEN ER MY HAND AND SEAL OF OFFICE this da of 20 'WOW Notary u w w and ,R-or the State ofTexas eta ° ' printed Name �,,����� SARAH J.ODL' My rOMMISSION EXPIRES Noveff"r 5,'2015 Exhibit 1.0 NEZ Incentives Exhibit 2: Property Descri*ption Exhibit 3: Application: (NE ,) Incentives and Tax Abatement Exhibit 4: Required Improvements descn*pton including kind, number and location of the proposed improvements. Exhibit 51: Final Survey Exhibit I CITY OF FORT WORTH NEIGHBORHOOD EMPOWERMENT ZONE (NE TAX ABATEMENT POLICY AND BASIC INCENTIVES 11 GENERAL PURPOSE AND, OBJECTIVES Chapter 378, of the Texas Local Government Code allows a municipality to create a I Neighborhood Empowerment Zone (NEZ) when a 11—municipality determines, that the creation of the zone would promote: (1) the creation of affordable housing, including manufactured housing, in the zone-, (2) an increase in economic development in the zone, (3) an increase in the quality of social services, education, or public safety provided to residents of the zone; or (4) the rehabilitation of affordable housings in the zone. The City, by adopting the following NE Z Tax Abatement Policy and Basic Incentives, will promote affordable housing and economic development in Neighborhood Empowerment Zones. NEZ incentives will not be granted after the NEZ expires as defined in the resolution designating the NE?. For each NEE, the City Council may approve additional terms, and incentives as permitted by, Chapter 378 of the Texas Local Government Code or by City Council resolution. However, any tax abatement awarded before the lexp,iration of a 1 shall carry its full term according to its tax abatement agreement approved by the City Council. As mandated by state law, the property tax abatement under this polliicy applies to the owners of real property. Nothing, i1 n the policy shall be construed as an obligation by the City of Fort Worth to approve any tax abatement application. 11. DEFINITIONS "Abatement or Tax Abatement" means a full or partial exemption 'from City of Fort Worth ad valorem taxes on eligible real and personal property located in a NEZ for a specified period on the difference between (i) the amount of increase in the appraised value as reflected on -the certified tax roll of the appropriate county appraisal district) resulting from improvements begun after the execution of a written Tax Abatement Agreement and (ii) the appraised value of such real estate prior to execution of a written Tax Abatement Agreement as reflected on the most recent certified tax roll of the appropriate county appraisal district for the year prior to the date on which the Tax Abatement Agreement was executed). "Affordable Units" means affordable to persons earning less than 80% Area Median Farrily Income (AMFI) as defined by U.S. Department of Housing and Urban Development (HUD) for single family housing and under 60%AMFI as defined by HUD for rental and multi-family. "Base Value"is the value of the Real Property Improvements, excluding land, as determined by the Tarrant County Appraisal District, during the year rehabilitation occurs. "Building Standards Commission" is the commission created under Sec. 7-77, Article IV., i Minimum Building Standards Code of the Fort Worth City Code. do tee.—February 5, 2013 1 "Capital Investment" includes only Real Property Improvements such as new facilities and structures, site, improvements,, facility expansion, and facility modernization., Capi tal Investment does NOT include land acquisition costs and/or any existing improvements, or personal property I (such as m�a,chiin�ery, equipment, and/or supplies and inventory). "'City of Fort Worth Tax Abatement Policy Stater entyy means the policy adopted by City Council. "CommerciallIndustrial Development Project" is a development project which proposes, to construct or rehabilitate commercial/industrial facilities on property that is (or meets -the requirements to be) zoned commercial, industrial or mixed use as definedi by the City of Fort Worth Zoning Ordinance. "Community Facility Development,Project"'is a development project which proposes to, construct project or rehabilitate community facilities on property that allows, such use as defined by the City of Fort Worth Zoning Ordinance., "Eligible Rehabilitation' includes, only physical improvements to Real Property, Improvements. Elligiblel Rehabilitation does NOT include personal property (such as furniture, appliances, equipment, and/or su�ipipli�els). "Gross Floor Area" is measured by taking the outside dimensions of' -the building at each floor level, except that portion of the basement used only for utilities or storage,, and any areas within the building used for off'-street Parking. "Minimum Building, Standards Code"is Article IV of the Fort Worth City Code adopted pursuant to Texas Local Government Code, Chapters 514 and 214. "Minority Business Enterprise (MBE)"and "Women Business Enterprise (WBE)"'is a minority or woman owned business that has received certification as either a certified MBE or certified WBE by either the North Texas Regional certification Agency (NT RCA) or the Texas, Department of Transportation (TxDot), Highway Division. "Mixed-Use Development Project" is a development project which proposes to construct or rehabilitate mixed-use faciilit,ies in which residential uses constitute 20, percent or more of the total gross floor area, and office, eating and entertainment and/or retail sales ands service uses constitute 10 percent or more of the total gross floor area and is on property that is (or meets the requirements to be) zoned mixed use as described by the City of' Fort Worth Zoning Ordinance. "Multi-family Development Project,"' is a, development project which proposes to construct or I rehabilitate 3 or more multi-family residential living units on a property that is or meets the requirements to be)! zoned multi-family or mixed use as defined by the City of Fort Worth Zoning Ordinance. "New Construction" is a newly constructed habitable structure improvement requiring a permanent, foundation,. This excludes accessory structures such as sheds and incidental out buildings. "'Primary Residence" is the residence that has a Homestead Exemption on file with Tarrant County Appraisal District. Adopted—February 5, 2013 2 "Project" means a "Residential Project", "CommerciallIndustrial Development Project""Community Facility Development Project "Mixed-Use Development Project, or, a y y "Multi-family Development Project." "Real Property Improvements" — means a habitable structure, as defined by the Fort Worth Building Code., "Reinvestment Zone" is an area designated: as such by the City of Fort Wolrt'h: in: accordance with the Property Redevelopment and Tax Abatement Act cold�if'i�eld in Chapter 312 of the Texas Tax Code,: or an area designated as an enterprise zone pursuant to the Texas Enterprise, Zone Act, codified in Chapter,2,3,03 of the Texas, Government Code. "Residential Project' eans less than 31 residential units,. 111111. MUNICIPAL PROPERTY TAX ABATEMENTS, A. RESIDENTIAL PROPERTIES LOCATED IN A NE,Z- FULL ABATEMENT FOR 5 YEARS 1. For residential property purchased before NEZ designation, a homeowner shall be eligible to apply for a tax abatement by meeting the following.- a. Property is owner-occupied and the, primary residence of the homeowner prior to the final NEZ designation. Homeowner shall provide proof of ownership by a warranty deed, affidavit of heirship, or a probated will, and shall show proof of primary residence by homestead exemption, and b. Property is rehabilitated after I" EZ des,ignation and City Council approval of the tax abatement; c. Homeowner must perform Eligible Rehabilitation on the property after NEZ 310% of the Base Value of the Real Property designation equal to or in excess of Improvements; and d. Property is, not in a tax-d:eli,nquent status when the abatement application is submitted. 2. For residential property purchased after NEZ designation, a, homeowner ,shall be eligible to apply for a tax abatement by meeting the following: a. Real Property Improvements are cons,t,ructe or rehabilitated after NEZ designation and City Council approval of the tax abatement; �b. Property is olwner-oiccupied and is the primary residence of the homeowner. Homeowner shall provide proof of ownership by a warranty deed, affidavit of heirship, or a probated will, and shall show proof of primary residence by homestead exemption,' c. For rehabilitated Real Property Improvements, Eligible Rehabilitation costs on the Real Property Improvements shall be equal to or in excess of 30% of the Base Value of the Real Property Improvements. 'The seller or owner shall provide the City information to s,upploirt rehabilitation costs; d. Property is not in a tax-delinquent status when the abatement application is subm!itted; and Adopted—February 5, 2013 31 e. Property is in conformance with the City of Fort Worth Zoning Ordinance however, a property use that is legal non-conforming shall not be eligible to receive a tax abatement. 3. For investor owned single family property, an investor shall be eligible to apply for a tax abatement by meeting the following: a. Real Property Improvements are constructed or rehabilitated after NEZ designation and City Council, approval i of the tax abatement- b, For rehabilitated Real Property Improvements, Eligible Rehabilitation costs on the Real Property Improvements shall be equal to or in excess of 30% of the Base Value of the Real Property Improvements; c. Property is not in a tax delinquent status when the abatement application, is submitted; and d. Property is in conformance with the City of Fort Worth Zoning Ordinance. B. MU!LTI�-F'AMILY DEVELOPMENT' PIRO,JECTS, LOCATED IN A NEZ 1. 1 00!%, Abatement for 51 years'. If an applicant appilies, for a, tax abatement agreement, with a term of five Yoars or less, this section all Abatements for multi-family development projects for up to 5 years are subject to City Council approval. The applicant may apply with the Housing and Economic Development Department for such abatement. In order to, be eligible for a property tax abatement upon completion, a, new constructed or rehabilitated multi family development project in a NEZ must satisfy the following: At, least twenty percent (2101%) of the total units constructed or rehabilitated shall be affordable (as defined by the U. S. Department of Dousing!, and Urban Development) and set, aside to persons with incomes at or below eighty percent (80%) of' area median income based on family size. City Council may waive or reduce the 20,% affordability require gent on a, case by-case basis,., In addition at least 5% of the total units constructed or rehabilitated shall be compliant with the Americans with Disability Act (ADA)l in accordance with I Section 504 of the Rehabilitation Act', and must be fully accessible and 2% of the total units constructed must be fully accessible to persons with sensory impairments; and (a) For a multi-family development project constructed after NE,Z designation, the project must provide at least five, (5) residential living units OR have a minimum Capital Investment of$200,000; or (bi) For a rehiabilitation project, the Real Property Improvements must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the Real Property Improvements shall be at least 30%, of the Base Value of the Real Property Improvements. Such Eligible Rehabilitation costs must come from the rehabilitation of at least five 5 iresidential living units, or a minimum Capital Investment of$200,0010. Adopted— February 5, 20,13, 4 2. 1,%-1 00%, Abatement of City Ad Vallorem taxes up to 10 vears If an gppl,i'cant a;)plies for a tax abatement agreement, with a term of more than -five years,, this section shall Abatements for multi-family development projects for up to 101 years are subject to, City Council approval. The applicant may apply with the Housing and Economic Development Department for such abatement. Years 1 through 5 of the Tax Abatement A reernent Mul:ti-family projects, shall be eligible for 100% abatement of City ad valorem taxes for years one through five of the Tax Abatement Agreement upon the satisfaction of the following: At least twenty percent (20%) of the total units constructed or rehabilitated shall be affordable as defined by the U. S. Department of Housing and Urban Development) and set aside to persons with incomes at or below eighty percent (80%) of area median income based on family size. City Council may waive or reduce the 20%, affordability requirement on a case,-by-case basis. In addition at least 5% of the total units constructed or rehabilitated shall be compliant with the Americans, with Disability Act (ACA) in accordance with Section 5104 of the Rehabilitation, Act,, and must be fully accessible and 2% of the total units constructed must be fully accessible to persons with sensory impai,rments,- and a. For a multi-family de elopmeint project constructed after NEB designati�on, the project must provide at least five (5), residential living units OR have a minimum Capital Investment of$200,000; or b. For a rehabilitation project, the Real Property Improvements must, be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the Real Property Improvements shall be at least 30% of the Base Value of the Real Property Improvements, Such Eligible Rehabilitation costs must come, from the rehabilitation of at least five (5), residential living units or a, minimum Capital Investment of$200,000. Years 6 thrgu A h 10 of the Tax Abatement Agreement Multi-family projects shall be eligible for a 1%-100% abatement of City ad valorem taxes for years six through, ten, of the Tax Abatement Agreement upon the satisfaction of the foillowing. a. At least twenty percent, (20%) of the total, units constructed or rehabilitated shall be affordable as defined by the U. Si. Department of Housing and Urban Development) and set aside to persons with incomes at or below eighty percent (80%,) of area median, income based, on fam:lily size., In addition at, least 5 of the total units constructed: or rehabilitated shall be compliant with the Americans, with Disability Act (AC A) in accordance with Section 504 of the Rehabilitation Act, and must be fully accessible and 2% of' the total units constructed must be fully accessible to persons with sensory impairments. City Council may waive or reduce the, 20% affordability requirement on a case-by-case basis; and Adlopted—February 5 13 5 For 0 a multi-family,development project constructed after NEZ des,igination, the project must provide at least five (5) residential living units, OR have a minimum Capital Investment of$200,0W- or 2. For a rehabilitation project, the Real, Property Improvements must be rehabilitated after NEZ designation. Eliglible Rehabilitation costs on the Real Property Improvements shall, be at least 30% of the Base Value of the Real Property Improvements. Such Eligible Rehabilitation costs must come from the rehabilitation of at least five (5) residential living units or a minimum Capital Investment of$200,000. b. Any other terms, as City Council, of the City of Fort Worth deems appropriate, including, but not limited to: 1. utilization of' F'ort Worth companies for an agreed upon percentage of the total, costs for construction contracts; 2. utilization of certified minority and women owned business enterprises for an agreed upon percentage of the total costs for construction, contracts*,, 3. property inspection; 4. commit to hire an agreed upon percentage of Fort Worth residents 5. commit,to hire an agreed upon percentage of Central City residents 6.1 landscaping; 7. tenant selection plans- and 8. management plans. C. COMMERCIAL, INDUSTRIAL AND COMMUNITY FACILITIES DEVELOPMENT PROJECTS, LOCATED IN A NEZ 11. 100% Abatement of Cit y Ad Valorem taxes for 5 years If an applicant a-pp lies, for a tax abatement aqreem:ent with a term of five years or leasl this section shall Abatements for Commercial) Industrial and Community Facilities Development Projects for up to 51 years are subject to City Council approval. The applicant may apply with the Housing and Economic Development, Department for such abatement. In order to be eligible for a property tax abatement, a newly constructed or rehabilitated commercial/industrial and community facilities development project in a N,EZ must satisfy the following: a. A comimeirc,ial, industrial or a community facilities development project constructed after N�EZ designation must have a minimum Capital Investment of $75,000; or b. For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the Real Property Improvements shall be at least 30%, of the Base Value of the Real Property Improvements, or $75,0010, whichever is greater. 2. 1%-100% Abatement of Ad, "galore m taxes_.aip to 10 vears If an Nplicant applies for a tax abatement agreement with a term of more than five years , this section shall Adopted— February 5, 2 013 6 Abatements agreements for a Commercial, Industrial and Community Facilities Development projects for up to 0 years, are subject to City Council approval. The applicant, may apply with, the Housing and Economic Development Department for such abatement. Years, 1 through 5 of the Tax Aba,temenLAgreement Commercial, Industrial and Community Facilities Development projects, shall be eligible for 100% abatement of City ad valorem taxes for -the first five years of the Tax Abatement Agreement upon the satisfaction of the following-. a. A, commercial, industrial or a community facilities development project constructed after 1 designation must have a minimum Capital Investment of $75,000; or b. For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the Real Property Improvements shall be at least 30% of the Base Value of the Real Property Improvements, or $75,0010, whichever is greater. Years 6 throe 10 of the Tax Abatement reernent Commercial, Industrial, and Community Facilities Development projects shall be eligible for 1%-100% abatement of City ad valorem taxes for years, six through ten of the Tax Abatement Agreement upon the satisfaction of the fol,lowin,g.- a. A commercial, industrial or a community facilities development project constructed after NEZ designation must have a minimum Capital Investment of $75,000 and must meet the requirements, of subsection (c) below or bi. For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the Real Property Improvements shall, be at least 30% of' the Base Value of the Real Property Improvements, or. $75,000, whichever is greater and meet the requ,irements of subsection (c) below. c. Any other terms as City Council of the City of Fort Worth deems appropriate, including,, but not limited to 1 utilization of Fort Worth companies for an agreed upon percentage of the total costs for construction contracts, 2. utilization of certified minority and women owned business enterprises for an agreed upoin, percentage of' the total, costs for construction contracts; 3. commit to hire an agreed upon percentage of Fort Worth residents-, 4. commit to hire an agreed upon percentage of' Central City residents-, and 5. landscaping. Adopted— February 5, 2 013 7 r% MIXED-USE DEVELOPMENT PROJECTS LOCATED IN A NEZ 1 100% Abatement of Cit Valorem taxes for 5 oars If an applicant nplies, for a tax abatement agreement with a term of five years or less, this section shall Abatements, for Miixe,d-Use Development Projects for up to 5 years are subject to City Council approval. The applicant may apply with the Housing and Economic Development Department for such abatement. In order to be eligible for a property tax abatement,, upon comip,leti'on, a newly constructed or rehabilitated mixed-use development project in a NEZ must satisfy the following: a. Residential uses in the project constitute 20 percent or more of the total Gross Floor Area of the project. At least twenty percent (20%) of the total units constructed, or rehabilitated shall be affordable as defined by the U. S-1 Department of Housing and Urban Development) and set aside to persons with i,ncomes at or below eighty percent (80%) of area median income based on family size. In addition at least 5% of the total units constructed or rehabilitated shall be compliant with the Americans with Disablility Act (ADA) in accordance with Section 504 of the Rehabilitation Act, and must be fully accessible and 2% of 'the total units constructed must be fully accessible to persons with sensory impairments; and b. Office, elating and entertainment, and/or retall, sales and service uses in the project constitute 10 percent or more of the, total Gross, Floor Area of the project; and (1) A mixed-use development project constructed after NEZ designation must have a minimum Capital Investment of$,200,000; or (2) Fora rehabilitation project, it must be rehabilitated after NEZ, designation. Eligible Rehabilitation costs on the Real, Property Improvements shall be at least 30% of the Base Value of the Real Property Improvements, or $200,0001, whichever is greater. 2. 1%-1,00% Abatement of City Ad Valorem taxes up to 10 gars If an a,pplicant applies for a tax abatement aqreement with a term of more than five years,, this section sha,ll Abatements agreements for a Mixed Use Development projects, for up to 10 years are subject to City Council approval. The applicant may apply with the Housing and Economic, Development Department,for such abatement. Years 1 throe 5 of the Tax Abatement Agreement Mixed Use Development projects shall be eligible for 1010% abatement of City ad valorem taxes for the -first five years of the Tax Abatement Agreement upon the satisfaction of the following: Adopted—February 5, 2 0,13 8 a., Residential uses in the project constitute 20 percent or more of the total Gross Floor Area of the project. At least twenty percent (20%,) of the total, units, constructed or rehabilitated shall be affordable (as defined by the U. S. Department of Housing and Urban Development): and set aide to persons with incomes at or below eighty percent (80%) of area median income based on family size. In additioln at least 5% of the total units constructed or rehabilitated shall be compliant with the Americans with Disability Act (ADA) in accordance with Section 5,04 of the Rehabilitation Act, and must be fully accessible and 2% of the total units onstructedi must be fully accessible to persons with sensory impairments,- and b,., Office, eating and entertainment, and/or retail sales and service uses in the project constitute 110 percent or more, of the total Gross Floor Area of the project, A anu c. A new mixed-use development project constructed after NEZ designation must have a minimum Capital Investment of $200,000; or for, a rehabilitation project,ect, it must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the Real Property Improvements shall be at least 30% of the Base Value of the Real Property Improvements, or $200,000, whichever is greater., Years 6 through 10 of the Tax Abatement &g,reement Mixed Use Development projects, shall be eligible for 1-100%, abatement of City' ad valorem, taxes for years six through ten of the Tax Abatement Agreement upon the satisfaction of the following: a. Residential uses in the project constitute 20 percent or more of the total Gross Floor Area of the project; At least twenty percent (20%) of the total units constructed or rehabilitated shall be affordable as defined by the lei. Si. Department of Housing and Urban Development,) and set aside to persons with incomes, at or below eighty percent (80%) of area median income based on family, size. In addition at least 5% of the total i units, constructed or rehabilitated shall, be compliant with the Americans, with Disablilit'y Act (AD A) in accordance with Section 504 of the Rehabilitation Act, and must be fully accessible and 2% of the total units constructed must be fully accessible to persons with sensory impairments; and b. Office, eating and entertainment,, and/or, retail sales and service uses in the project constitute 10 percent or more of the total Gross, Floor Area of the projecty c. A new mixed-use development project constructed after NEZ designation must have a minimum Capital Investment of $200,000; or for a rehabilitation project it must be rehabilitated after NEB designation,., Eligible Rehabilitation costs on the Real Property Improvements shall be at least, 30%, of the Base Value of the Real Property Improvements, or $2 0,000, whichever is greater; and d. Any other terms as City Council, of the City of Fort Worth deems appropriate, including, but not limited to Adopted— February 5, 2013, 9 utilization of Fort, Worth companies for an agreed, upon percentage, of the total costs for construction contracts; 2. utilization of certified minority and women owned business enterprises for an agreed upon percentage of the total costs for construction contracts,- 3. property inspection; 4. commit to hire an agreed upon percentage of Fort Worth residents 5. commit to hire an agreed upon percentage of Central City residents 6. landscaping-, 7. tenant selection plans; and 81. management plans. E. ABATEMENT GUIDELINES 1 If a NEZ is located in aTax Increment Financing District,, City Council will determine on a case-by-case basis if the tax abatement incentives in Section III will be offered I i to eligible Projects. Eligible Projects must meet all eligibility requirements specified in Section Ill. 2. A tax abatement shall not be granted for any development project in which a building permit application, excluding grading and/or demolition, has been filed with the City's Planning and Development Department. In addition, the City will not abate taxes on the value of reel or personal property for any period of time prior to the, year of execution of a Tax Abatement Agreement with the 'City. 3. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order to be considered IS eligible" to apply for a tax abatement under this Policy, the Woodhaven Community Development Corporation and the Woodhaven Neighborhood Association must have submitted a letter of support for the Projectto the City of Fort,Worth 4. Tax Abatements, foir a new construction, project will automatically terminate, two, years after Council approval of the tax abatement if a building permit, has not been pulled and a, foundation has not been poured. 5. 'Tax Abatements for a rehabilitation project will automatically terminate two years after Cou�n�c,il, approval, of the tax abatement if the project is not complete. 6. In order to be eligible to apply, for a tax abatement, the property owner/developer must.. a. Not be delinquent in pay I ing, property taxes for any property owned, by the owner/developer, except that an owner/developer may enter into a tax abatement agreement with the city of Fort Worth for a specific Project if. 1. the Project meets NEZ tax abatement criteria, and 2. the appilicannt is not responsible for the tax delinquency foir the Property; and 3. the, applicant enters, into an agreement to pay off the taxes under the guidelines permitted under state law, and 4. the tax abatement shall provide that the agreement shall take effect after the dellinquent taxes are paid in full Adopted—February 5, 201 3 1 0 Not have, any City of Fort Worth liens filed against any property owned by the applicant property owner/developer., "L,ienis," iniclude, but are not limited to, weed liens, demolition lien: , board-uip/open structure liens and paving liens. 7. Projects to be constructed on property to be purchased under a contract for deed are not eligible for tax abatements. 8. Once a NEZ property owner of a residential property (including multi family In the NEZ satisfies the criteria set forth in Sections IIIA E.1. and E.2. and applies for an abatemen�t, a property owner may enter into a tax abatement agreement with the City of Fort Worth. The tax abatement agreement shall automatically terminate if the property subject to, 'the tax abatement agreement is in violation of the City of Fort Worth's Minimum Building Standards, Code and the owner is convicted of such violation. 9. A tax abatement granted under the criteria set forth in Section 111. can only be granted once for a property in a, NEZ for a maximum term of as specified in the agreement. If a property on which tax is being abated is sold, the City may assign the tax abatement agreement for the remaining term once the new owner submits an application so long as the new owner complies with ell of the terms of the tax abatement agreemenit,.,8 A property owner/developer of a mul�tifamily d�evelopmenit,, commercial, industrial, community facilities and mixed-use development project in the NEZ who, desires a tax abatement under Sections 111.13, C or D must: a. Satisfy the criteria set forth in Sections 111.13, C or D, as, applicable, and Sections I II.E.1 E.,2; and E3,. and b. File an application with the Housing and Economic, Development Department, as applicable; and c. The property owner must enter into a tax abatement agreement with the City of' Fort Worth. In additi on to the other terms, of agreement,, the tax abatement agreement shalil provide that the agreement shall automatically terminate if the owner receives one conviction of' a violation of the City of Fort Worth'i s Minimum Building Standards Code regarding the, property subject to the abatement agreement during, the term of the tax abatement agreement- and d. If a property in the NE Z on which tax is being ablated is solid, the new owner may enter into a tax abatement agreement on the property for the remaining term. 10. If the terms of the tax abatement agreement are not met, the City Council has the right to cancel: or amend the abatement agreement. In the event of cancellation, the recapture of abated taxes sihalil, be limited to the yea's) in which the default occurred or continued. 11. The terms of the agreement shall include the City of Fort Worth's right to:, (1) review and verify the applicant's financial statements in each year during the life of the agreement prior to granting a tax abatement in any given year, (2), conduct an on site inspection of the project in each year during the life of the abatement to verify compliance with the terms of the tax abatement agreement,, (3) terminate the agreement if 'the Project contains or will con,ta,in, a sexual,l,y oriented business (4 terminate the agreement, as determined in City's sole discretion,l if the Project contains, or will contain a liquor store or placka,ge store. I t, Adopted— Fe I oruary D, 2013 12. Upon completion of construction of the facilities, the City shall no less than annually evaluate each project receiving abatement to insure compliance with the terms of the agreement. Any incidents of non-complianc,e will be reported to the City Council. On or before February 1st of every year during the l,ife of the agreement, any individual or entity receiving a tax abatement from the City of Fort Worth shall provide information and documentation which, details the piroperty owner's compliance with the terms of' the respective agreement and shall certify that the owner is in compliance with each applicable term of the agreement. Failure to report this information and to provide the required certification by the, above deadline shall result in cancellation of agreement and any taxes abated in the prior year being due and payablie. 13. If' a property in the NEZ on which tax is being, abated is sold, the new owner may enter into a tax abatement agreement on the property for the remaining term. Any sale,, assignment or lease of the property which is not permitted in the tax abatement agreement results in automatic cancellationi ofthe agreement and recapture of any taxes abated after the date on which an unspecified assignment occurred,. F. APPLICATION FEE 1. An application fee of$25.00 for all basic incentives, excluding tax abatements., 2. The appilication fee for residential tax abatements governed under Section 11LA, is $1010. 3. The application fee for multi-famil,y, commercial, industrial, community facilities, and mixed-use development projects governed under Sections III. ., C. and D.,, is one- half of one percent (0.5%) of the proposed Project's Capital Investment, with a $2010 minimum not to exceed $2,000. The Application, Fee shall not be credited or refunded to any party for any reason. IV. FEE WAIVERS, A. ELIG,I,BLE RECI:PIEN T'S/PROPS RTIES 1. pity Council, shall determine on a case-by-case basis whether a Project that will contain or contains a liquor store or package store is eligible to apply for a fee waiver. 2. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order to be considered it eligibll:e" to apply for a fee waiver under this Policy, the Woodhaven Community Development Corporation and the Woodhaven Neighborhood Association must ha° el submitted, a letter of' support for the Project to the City of Port Wort however, once the NEZ Plan is submitted for the Woodhaven NEZ, this will no longer be required.3. Projects to, be constructed, on property to be purchased under a contract for deed are not eligible for development fee waivers. 3. In order for a property owner/developler to be eligible to apply for fee waivers for a Project,, the property owner/developer: Adopted—February 5,, 2 0131 12 a," must submit an app,lic,ation to the City'; bl. must not be delinquent in paying property, taxes for any property owned by the owner/developer or applicant; c. must not have any City liens filed against any property owned by the applicant prop er ty owner/de vet,oper, including but not limited to, weed liens, demolition liens, boiard-up/open structure liens and paving liens, and, d. of a Project, that will contain or contains a liquor st,olre, package store or a exua slly oriented business has received City Council's determination that the Project 'is eligible to apply for fee ilversi. I Appr,olvlai Of the all ication and waiver of the fees shall not, be deemed t be approval of are spect of the Proielct. Before construction,, the applicant must ensure that thepro'ect is located in the correct zonin I r*ct. I q d'st i B. DEVELOPMENT FEES Once, the Application for NEZ Incentives has been approved and ceftified by the City, the following fees, for services rformed by theCLty,olf Fort 'Worth for Pri lects in the N,EZ 01: are waived for new construction projects or rehabilitation projects that expend at least ,30%, of the Base Value of the Real Prue Improvements on Eligible Reh il�itatioln costs-. a) All Building Permit related Fees, (including Plans Review and Inspections) except as, stated "in IV B. 2., below b) Plat Application Fee (including Concept Plan, Prellminary Plat, Final Plat, Short, Form Rieplat) c) Board, of Adjustment Application Fee, d) Demiolition fee e) Structur vii ng Fee f), Community Facilities Agreement (CFA) Application Fee g) Zoning Application Fee h) Street and Utility Easement Vacation Application Fee 1) Ordinance Inspection Fees j) Consent/Encroachment Agreement Application, Flees k) Transportation Impact Fees 1) Urban Forestry Application Feels, m), Slign Permit Flees, 2. If a permit or application listed in B (1) is expired, the, fee to reactivate, r ew or reapply all not" be waived. In addition, penalties and extension fees or re-permitting feels will not be waived. 3. Neighborhood Empowerment Zone Feels not waived or reduced: a.) Investigation Fees b.) Plan Revision Fees c.), Change of Record Fees, d'.,) Inspection outside of normal business hours, Reinsplection Fee e.) An l Fire Inspection Fees Adopted —February 5, 2013 131 4. Other development related fees, not specified' will be considered for approval by City Council on a, case-by-case blas,is,. C. IMPACT' FEES, 1. Single family and multi-family residential development projects in the NEZ. Automatic 1 o�0%, waiver of'water and wastewater impact fees will be applied., 2., Commercial, industrials, mixed-use, or community facility development projects in the NEZ,. a�., Automatic 1001% waiver of water and wastewater, impact fees up to $55,,000 oir equivalent, to two 6-inch meters for each commercial,i industrial, mixed-use or con,"iimunity facislity development project; whichever is less. b. If the project requests an impact fee waiver exceeding $55,000, or requesting a waiver for larger and/or more than two 61-inch meter exceeding $55,0001, then City Council approval is required. Applicant may request the additional amount of impact fee waiver through the Planning and Development Department. V'. RELEASE OF CITY LIENS ►di ELIGIBLE RECIPIENT&PROPER'nIES 1. Project must be located in a NE Z. 2.1 City Council shall determine on a case-by-case basis whether a Project that will contain or contains a liquor store or package store; is eligible to receive a release of City liens., 3. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order to be considered eligible" to apply for release of city lsiens under this Policy, the Woodhaven Community Development Corporation and the Woodhaven Neighborhood Association must have submitted a letter of support for the Project to the City of Fort Worth. 4. Projects to be constructed on property to be purchased under i a contract for deed are not eligible for any release of City Liens. 5. In order for a property ownier/developer to be eligiible to apply for a release of city liens, contained in Section V.B., C., D., ands E. for a Project, the property owner/devel�oper: a. must submit an application to the City-' bi. must not be delinquent in paying property taxes for any property owned by the owner/developer; c. must not have been subject to a Build�in g Standards Commission's, Order of Demolition where the, property was demolished within the last five (5) years; I I d., must not have any City of Fort Worth liens filed against any other property owned by the applicant property owner/developer. "L,iens" includes, but is not limited to, weed liens,, demolition liens, bloard�-up/open structure liens, and paving liens; and Adopted-- February 5, 2013 141 U,!e. of a Project that contains or will contain a liquor store, package store or a sexually oriented business has received City Council's determination the Project is eligible to receive a release of city liens. 6. In order for a Rehabilitaition Project to qualify for a release of city liens, the owner/developer must spend Eligible Rehabilitation costs on the Property of at least 30% of the Base Value of the Property. 7. Liens listed in this Pollicy shall be released once the Project Improvements have, been made, to the property. 8. Any liens filed after the initial certification of the property shall not be released. B., WEED LIENS The following are eligible to apply for release of weed liens: 1. Single unit owners performing, rehabilitation on their properties., 2. Builders or developers constructing new homes on vacant lots. 3. Owners performing rehabilitation on multi family, commercial, industrial, mixed-use, or community facility properties. 4. Developers constructing new multi-family, commercial, industrial, mixed-use or community facility development projects. C. DEMOLITION LIENS Builders or developers developing i or rehabilitating a property for a Project are eligible to apply for release of demolition liens for up to $30,0�00. Releases, of demolition liens in excess of $30,000 are subject to City Council approval., D. BOARD-UP/01131EN STRUCTURE LIENS The following are eligible to apply for release of board-up/open structure fiens: 1. Single unit owners performing rehabilitation on their properties. 2. Blui�l ers or developers constructing new single family homes on vacant lots. 3. Owners performing rehabilitation on multi-farnily,, commercial, industrial, mixed-use, or community facility properties. 4. Developers, constructing multi-family, commercial, industrial, mixed�-�use, or community faci,lity projects. E. P"ING LIENS The following are eligible to apply for release of paving liens: 1. Single unit,owners performing rehabil,itation on their properties. 2. Builders or developers constructing new homes on vacant lots. 3. Owners performing rehabilitation on multi-family, commercial,, industrial, mixed-use, or community facility properties. Adopted—Fe,bruary 5, 2013 115 4. Developers constructing multi-family, c�om�mercial, Industrial, mixed-use,l or, colmm�uni�ty facility projects,. F. All other City liens will not be waived,. V1. PROCEDURAL STEPS A., APPLICATION SUBMISSION 1. The appil�icant for N�EZ incentives under Sections Ill. IV., and V., must complete and submit a City of Fort,Worth "Application for, NEZ Incentives"' and pay the apipropiriate application fee to, the Planning and Development Department, as apiplicabile. 2. The applicant for incentives under Sections III.C.2 and Di.2 must also complete and submit a City of Fort, Worth "Applic,atilon for Tax Abatement" and pay the appropriate application fee to the Housing and Economic Development D�epartm:en�t. The application, fee, review,, evaluation and approval will be governed by City of Fort Worth Tax Abatement Policy Statement for Qualifying Dievell�olpme�n�t Projects. 3. A,ll NE,Z certifications,forincentives,will expire after five y�elars. 4,. NE,Z benefits will continue for certified projects (18) eighteen months after a NEZ Is terminated, or the NEZ boundary changed. 1341 CERTIFICATIONS FOR APPLICATIONS UNDER SECTIONS III. IV, AND V 1. The Planning and Development Department will, review the application for accuracy and' completeness,. A complete application, must include proof that.- 1. The Project is located in a, NE,Z,, 2. The Public Notification Process has been completed as statedin section IX, 3. The project is in compliance with the adopted NEZ plan, and 4. The Council Miember for the district in which the project is located, has approvedthe project. Once the Planning and Development Department determines, that the application is complete, the Planning and Development Department will, certify the property, owner/developer's eligi�blilit,y to receive tax, abatements, and/or basic incentives based on the criteria set forth in Section Ill., IV., and V. of this policy, as applicable,. Once an applicant's eligibility is, certified, the Planning and Development Department will inform appropriate depla,rtm�ents administering the incentives. An orientation meeting with City departments and the applicant may be schie�d�uled., 'The departmentsincludel- a. Housing and Economic Development Department: propefty tax abatement for residential properties and muliti-family development, projects, release of City liens,., b. Housing, and Economic Development Department: pliroperty tax abatement for commercial, industrial, community facilities or mixed-use development projects. c., Planning and Development Department,* development fee waivers and release of City liens. d., Water Department: impact fee waivers. e. Other appropriate, departments,, if applicable. Adopted—Febmary 5, 2013 16 C. APPLICAnON, REVIEW AND EVALUATION FOR APPLICATIONS 1. Property Tax Abatement for Residential Properties and Multi-family Development Projects a. For a completed and certified application for no more than five years, of tax abatement; with Council approval, the City Manager shall execute a tax abatement agreement with the applicant. b. For a comp,lie tad, and certified multi-family development project application for more than five years of tax abatement- (1), The Housing and Economic Development Department will evaluate, a completed and certified application based on: (a)The project's increase in the value of the tax base., (bi) Costs to the City (such as infrastructure participation, etc.)I. (c) Percent of construction contracts committed to,.- (1) Fort Worth, based firms, and (11) Minority and Women Owned Business, Enterprises (MOB s . (d) Other items which the City and the applicant may negotiate. (3) Consideration by the City Council The City Council retains sole authority to approve or deny any tax abatement agreement andl is under no obligation to approve any tax abatement application or tax abatement agreement. The City of Fort Worth is under no obligation to, provide tax abatement in any amount or value to any applicant., c. Effective Date for Approved: Agreements All tax abatements approved by the City Council mill become effective on January 11 of the year following the year in which a Certificate of Occupancy (CO) is issued for the qualifying�, development project (unless otherwise specified in the tax abatement agreement). Unless otherwise specified in the agreement,, taxes levied during the construction of the project shall be due and payable. 2. Property Tax Abatement for Commercial, Industrial, Community Facilities, and Mixed-Use Development Projects a. For a completed and certified application for no more than five years of tax abatement, with Council, approval, the City Manager shall execute a tax abatement agreement with, the applicant. b. For a completed and certified application for more than five years of tax abatement: (1) The Housing andl Economic Development Department will evaluate a completed and certified application based on: (a) The project's increase in the value of the tax base. (b) Costs, to the City (such as infrastructure participation, etc.). (c) Percent of construction contracts committed to*. (i) Fort,Worth based firms,, and (ii) Minority and Women owned Business Enterprises, (M/VVBEs)., Adopted—,February 5,, 2 01 131 17 (d) Other items which the City and the applicant may negotiate. (2), Consideration by the City Council The City Council retains, sole authority to approve or deny any tax abatement agreement and is under no obligation to approve any tax abatement application or tax abatement agreement. The City of Fort Worth is under no obligation to provide tax abatement in any amount or value to any applicant., c,. Effective Date for Approved Agreements All tax abatements approved by the City Council will become effective on January 1 of the year following the year in which a Certificate of Occupancy (CO) is issued for the qualifying development project (unless, otherwise specified, in the tax abatement agreem�eint). Unless otherwise specified in the agreement, taxes levied during the construction of the project shall be due and payable,. 3. Development Fee Waivers a. For certified applications of development, fee waivers that do not require Council approval, the Pilanning and Development Department will review the certified applicant's application and grant appropriate incentives. b. For certified applications, of development fee waivers that require Council approval, City staff will review the certified applicant's application and make, appropriate recommendations to the City Council. 4. Impact Fee,Waiver a. For certified applications of impact fee waivers that do not require Council approval,, the Water Department, will review the certified applicant's application and grant appropriate incentives. b. For certified applications of impact fee waivers that require Council approval, the Water Department will review the, certified applicant's application and make appropriate recommendations to the City Council., 5. Release of City Liens For certified applications, of release of City liens,, the Housing and Economic Development Department wi�ll, release the appropriate liens on NEZ tax abatement applicants. The Planning & Development Department will release liens on NEZ basic incentives applicants. V1111. REFUi ND POLICY In order for an olwnier/d,eveloper of'a Project in a NEZ,to receive a refund of development fees or in,'ipact fees,, the conditions set forth in the Refund of Development and Impact, Fee Policy,, attached: as Attachment"A", must be satisfied. V111. OTHER INCENTIVES A. The City Council may add the following incentives to a NEZ in the Resolution adopting the NEZ.- Adopted—February 5, 2 013 1,8 1.1 Municipal, sales tax refund, 2. Norm buyers assistance 3. Gap financing 4. Land assembly 5. Conveyance of tax foreclosure properties 6. Infrastructure improvements 7. Support for Low Income Housing Tax Credit, (LIHTC) applications 81. Land use incentives and zoning/building code exemptions, e.g., mixed-use, density bolnus, parking, exemption 9. Tax Increment Financing (TIF)i 10. Pul lic Improvement District (PIDI) 11. Tax-exempt bond financing 12. New Model Bl,ocks 13. Loan guarantees 14. Equity investments 15. Other incentives that,will effectuate the intent and purposes of NEE IX. Public Not"Ification a. Subject to subsection (bi), in order for an ow nor/delveloper to apply to receive any incentives provided for under the NEZ 'Tax Abatement Pollicy and Basic Incentives, an ow nor/develolpeir must meet with the following persons and organizations to discuss the Project. 1. the Council Member for the District the Projectis located; and 2. the neighborhood associations or communit'y based organizations registered with the city that are within 3001 feet of the, proposed P roi"Iect. The measurement of the distance between the proposed proj�ect and Neighborhood Associations or Community Biased Organizations shall be along the property lines of the street fronts and from front door to 'front dolor, and in direct line across the intersections., b. Subsection (a) shall be satisfied upon: 1., the o,wnier/developer meeting with the City Council Member for the District the Pro cot is located and the neighborhood associations, or community based organizations registered with the city that are wit in 300 feet of the prolp,olsed Project; or 2. meet,in,g, with the City Council Member,for the District the Project is located and upon the owner/developer providing proof that the owner/developer attempted to meet with the neighborhood associations and, the cornmunity based organizations registered with the city within 300: feet of where the proposed Project is located and the associations or organizations failed to arrange a meeting with the owner/developer within two weeks of initial contact. c. Accepted proof of attempts to meet with the registered organizations will be satisfied with the following-. 1. a copy of a certified letter sent to the registered organization d,esc,ri,bing, the project and requesting a meeting and the green card from the post office; or 2. a copy of the e-mail sent to the registered organization describing: the project and requesting a meeting and the response from the organization. Adopted­February 5, 2013 19 X. Inefigible P,roo iects The following Projects or Businesses shalil not be eligible for any incentives under the City' of Fort Worth's Neighborhood Empowerment Zone (NEZ) Tax Abatement Policy and Basic Incentives-. 1 Sexually Oriented Businesses 2. Non-residential mobile structures Ike j a X1. Dieni"ed Appiications a. NEZ applications will be denied 30 days of submission if all requ,ired, documentation is not received by the City. bi. The appilicant will have 90 days of the date of denial to resubmit the NEZ application without paying a new application fee. Adopted— February 5, 2013 20, ATTACHI MEI T A REFUND OF DEVELOPMENT AND IMPACT FE=EDS POLICY Purpose This refund policy is for the purpose of'establishing the c nditlions under which the City may refund develolpment and impact fees, normally waived through the Neighborhood Empowerment Zone (NEZ). Applicabl'i"Ity Unless expressly accepted, this policy applies, to all development and impact fees waived by the City through the NE Z. Under the NEZ Tax Abatement Policy and Basic Incent.ives, City Departments, are authorized to waive impact and development fees for�ualified projects located in a designated l J EZ. 'The impact fees include only water and sewer "irn pact fees, up to $55,000 for commercial, industrial, mixed-use or community facilities projects. The development fees that can be waived through the N include: 1. All building permit fees (including Plans Review and Inspections) 2. Plat, application fee (including concept plan, preliminary plat, final plat, short for re It 3. Board of Adjustment application fee 4. Demolition fee 5. Structure moving fee 6. Community Facilities Agreement (CFA) application fee 7. Zoning application fee 8. Street', and utility easement vacation application fee. To take advantage of these, waivers, applicants need to obtain a certification letter from the Planning, and Development Department. Con,d1"1:'1"ons for Refunds The City gill consider refunds only when c,ircum stances, beyond the developers control prevent them from obtaining the qualification letter from the Planning and Development Department. A property owner and/or develloper may qualify for a refund 'if the proposed development project meets all criteria to receive a fee waiver under the NEZ Tax Abatement and Basic Incentives Policy and. al. The owner and/or developer was not rnad� aware of the NEZ incentives at the time the fees were paid; or b. The owner and/or deve,loper was mistakenly told that his/her property was not in a designated NEZ,; or Adopted—February 5, 2 013 21 c. The owner an d/olr developer has put funds in an escrow account with a City Department while awaiting a decision from the City Council about his/her project; or do City Council authorizes a City Department to issue a refund to the owner/developer. Refund Charge A refund charge will be assessed to help defray admin,istratilon cost associate with the processing of refund check. The charge shall be 20% of t'he amount of the refund. This charge will be automatically deducted from the total refund amount. Statute of L*1miltatiions Any requ�es,t, action or proceeding concerning the refund of fees normally waived through the NEZ must be filed within ninety days following the date that the fees were paid. An applicant who doles not submit a refund request within 90 days of the transaction all not qualify for a refund. To obtain a refund the applicant needs too. submit a N'EZ application to the Planning and Development Department for determination of the eligibility for NEZ fee waivers,, and submit a written request to the Department in which the fees were paid. Upon receiving a confirmation from the Planning and Development Department that the project meets al EZ fee waiver cri teria that Department shall process the request l N , based on the, qualifications discussed in this, policy. Exemptions The provisions of this policy do not apply to: i a. Fees that, are not waived through the NEZ program; and b. Taxes and special assessments; and c. City liens such as mowing, board-up, trash, demollition and paring liens. An applicant shall not qualify for any refund if: a. The applicant was made aware of the NEZ incentives before he/she pays the fees; or b. The applicant does not meet the requirements, for NEZ incentives at the time hie/'she paid the fees; or c. The applicant paid the fees before the refund pollicy was put in place; or do The applicant paid the fees before the designation date of the NEZ. Discllailme�r In the event of any conflict between the City's ordinances or regulations and this policy, such ordinances or regulations shall control. In the event of any conflict between this Adopted—February 5, 20 13 22 policy and other policies, or regulations, adopted by the City Department issuing the refund, such departr nent policies or regulations shall con�trol. The City reserves the right to deny any or all request for refunds. Adopted-February 5,, 20113 2,3 Exhl*bl*t"2"1 Property Des,cription 2736 Same Avenue, dock 9 Lot 10, Frisco Heights Addition, in the City of Fort Worth, Tarrant County, Texas,, and as shown on the Plat recorded in Volume 204A, Page 96, Deed Records, Tarrant County, Texas E 4 xht 3 RT WORT H, 1v 2'1 c)i p p IiCatk)ri No. ...........................11rol""" 0 C ITY' O F' FORT W 0 RT'H NEIGHBORHOOD EMPOWERMENT ZO'NE (NEZZ) PROGRAM 1110JECTCERTIFICATION APPLICATION .......... 1* XPPLC A,rI0N CHECK LIST - I'lease submit the following documentation: �\ completed a,pplicat,ion form A list of all properties owned by the applicant, owner,developer.,associates, principals. partners.,an agents in the City Fort Worth Non Refundable Application fee— For all Basic Incentives applic�ations exclu,ding'rax Abatement the ,ipplication t*e is$25.00. For tnulti fain ily,commercial. i�ndus,trial,, cornmercial facilities. and inixed-arse tax ;1batement applications: 0.5%of the total Capital Investment off.the project., with a$2,00.00 miniMm and not to exceed$2.000�.00; For re�sidlicntial tax abatement applications,: $100.00 per house. Proof of o wnership, such,as a warranty deed.affi davrot of heirship, or a probated wi 11 OR evid,ence of site control,such as,option to buy (A registered war�rarity deed ii required for tax abatement application.) rilt l,e abstract of the properly only if applying for release of'City lliens) A redLICed I I x!7 floor plan,site plan,and site elevation with a written detailed proicct description that includes a,construction firne line A detailed line item budget sh wing the cost breakdown t*or the project Copy of Incorporation Papers noting all principiaK partners,and agents ifaipplicable i 11equired,- Meet with the Councilmember and Neig hbo he rhood&otr,Organi ,dons represent,ing the NEZ 'IS 01.111ined in the Public Notice requirement,of the NE Z Policy and Guidelines revised April 6, 2,0014 or 1`61lowed guidelines ot*NEZ Strategic Plan if a Strategic Plan is in pliace for the specific NEZ. El Support,letter from Woodhaven Neiv ,hborhood Association and Woodhaven Community Development Corporation(For projects locate win Woodhaven NEZ only) INCOMPLETE, APPLICATIONS WILL NOT BE PROCESSED FOR CERTIFICATION UNTIL, ALL REQUIRED DOCUMENTS SHOWN IN '111E, ABOVE, CHECKLIST. AR,E SUBMI'rTED WITIIIN 30 DAYS AFTER THE APPLICATION IS RECEIVED. YOU MUST APPLY FOR TAX ABATEMENT 13EFORE ANY BUILDING PERMITS ARE ISSUED FOR YOUR PROPERTY AND BEFORE ANY IMPROVEMENTS ARE MADE TO YOUR PROPERTY, IT TAKES 60 TO 90 BUSINESS DAYS TO COMPLETE THE TAX ABATEMENT AGREEMENT APPROVAL PROCESS AFTER T11E ISSUANCE OF NEZ, CERTIFICATION 'DEPENDING ON "rHE COMPLEXITY OF YOUR PROJECT. ALL BUILDING PERMITS MUST' BE PULLED WITHIN THE 12 MONTH1 PERIOD THAT CERTIFICATION WAS APPROVED,OR WITHIN THE 12 NIONTII PERIOD,THATTuE TAX ABATEMENT WAS APPROVED,,OR YOU WILL BE, REQUIRED TO RE-APPLY FOR NISI INCENTIVES., III, APPLICANT/ AGENT INFORMATION 0 1. AilicantI., 4 2. Contact Version.- 571M e 61#dn L oi'it. pp 1­110, 1-oczL I A d d ress. ty 2Z6 C,-),,.Cee oe Ike, C ty Street State Z i p 4. Phone no,.: 0 5., Fax No.: "W--------- 6,. E m ad: r le,i"im et C ael t 7., ikgeint(if any) S. Address: Street city State Zip 9. Phone no., 10. Fax No.: It. Email. [�evised Jluly 12,2011 1 01 RT WO RT H, Application No. 1110JECT ]ELIGIBILITY 1. Please list down tae addresses, and legal descriptions of the project and other properties your organization OWn3 in Fort Worth. Attach meter and bounds description 'if no address or le gall description is available. Attach a map showing the location of the project Table I Pruerq Ocaner ship Address Zip,Code �Project Iocation) Subdivision Name, A Lot No. Bl 736 ock No. t� 15)-"'1 1/A woo t 1 % /11 (Y Ma/b lix-ft 0 I�IIQ //,PJfIAXS' ZC/ Other properties owned in the City of Fort Worth - continue on a separate sheet and attach if necessary. r2ex e------ Veal /V gk�e --g73 7 4,J 6d 26V? E�r 1'5()2 IL AIAP 1,& -' 2, Lo 7 LID P/d 2. For each property listed in'rable 1, please check the boxes below to indicate if: there are taxes past due-, or there are City liens;or I You (tneaning the applicant, developer, associates, agents, principals) have been subject to a Building Standards Commission's, Order of Demolition where the property was demolished within the last five years. Table 2 P rope Lly Taxes and Ci Liens Property city Liens on Property Address Taxes, eed Board-up/Open Demolition Paging Order of' Due Liens Stuc,ture Liens, Liens Liens Demolition, .............. 11 r 42 4 a'',C/ fly LJ 1-7 Ell L-J El 11 El El EI: (Please attach additional sheets of paper as needed.) If there are taxes due air liens against anv property in the City of Fort Worth you may.not be eligible for NEZI 'Incentives Revised Juiy 12,2011 wo \ pficaWn No. I Do you own others properties under other names? Yes 54No If Yes,pl specify 4 Does the proposed project conform with City of Forst Worth Zoning? XLYes No If no, what,steps are being en to insure compliance? Project 0 Type. Single Family ultl-Family Commercial Industrial Community Facilities Mixed-Use Own*,r Otupied 2liatow Pro'Aem 6. Please describe the p rsed residential r cu a TV " Vk f m 76 your project a commercia4 industria4 or mlic'K d-use project,plean describo the types businesses that are being proposed: 8. Is this a new constracdon or rehab project? New Constructi n Rehab How muc b is the total development c t of your project? Oda der 10. Will the eligible rehabilitation work* equal to at least 30% of the Tarrant Appramil.District T assessed value of the structure during the year rehabilitation occurs.? Ryes D No, *Eligible reh ilitation includes only physical improvements to real propel. It does NOT include Front yard fencing consisting of chain-link or solid materiel construction;personal property such as furniture, appliances,equipment,ipmen and/or supplies.Total eligible rehabilitation costs shall equal to or exceed 30%of the TAD app ' ed value of the structure during a year rehabilitation,occurs. 11. How much *13 the total square footage of your project? square few lyw 1 ,. For a ,sin 4tfa " hom,eo wuershl xed-um or multi-famflx dmlopment v rc`I please fill out the number of r ldeatW units base on income range of owners or renters in the follovving table. . Table 3 Number of Residential Units and Income Ran&e of Owners or Renters At or below %of AMFI Tom ulfiu 1 Area Median Family Income. Please see chment for income and housing payme nt guidelines. 3. For a Multi roieO to be qualified for tax abatement, at least % of total units shall be affordable to families at or below 80%of AAM. Check the box if you are requesting a 'ewer of this requirement 14. For a commer al nd st " l or community facility indicate aquae footage of non- r esi identW space I� r square feet square few square feet Revised July 12,2011 0 RT WO RT H Application No. 15. How much will be your Capital Investment**,* on the project.' Tease use the following table to provide the details and amount of your Capital Investment (Attached additional sheets if necessary). Table 4 Itemized Budget of the Project Items Amount X o t es Toltal ***Capital Investment includes only real property improvements such as new facilities and structures,, site improvements, I'tacilltv o.xpumion, and Twilit y inodemization. Capital Investment OOES NOT' include kand acqui!sition, costs and/or any existing improvements,or personal property(such as machinery,,equipment,and'or supplies or inventory). 16. For a cram mierclial,,'t'n du�stri'al, comMunily faciliq or mixed-use-project, how many employees will the project generate? 17. For a mixed-use prolect, please 'Indicate the percentage of all uses Iin the project in the following table. Table 5 Percentage of Uses in a Mixed-Use Projiect y e Square Footage Percentage Residential Tice Satin Entertainment Retail sales Service Total tit. INCENTIVES What incentives are you applying for? Municipal Property Tax Abatements Must provide Final Plat Cabinet and Slide for'rax Abatement Cabinet Slide >�L 5 years 0 More than 51 years [:]Residential owner occupied *esidential Rental Property [:]Apartments(5 plus units) Commercial Devielol2ment Fee Waivers %--.-.A- All building permit related fees(including Plans Review and, Inspections) flat application fee(including concept plan, preliminary plat, final plat, short form replat) Zoning appfication fee Board of Adjustment application fee Demolition fee StruCtUre moving fee Community Facilities Agreement(CFA) app�lication fee Street and util ity easement vacation application fee Impact Fee Waivers, -The maximum water/wastewater impact fee waiver amount for a commercial, industrial, mixed,- use, or communi�ty facility development project is equivalent to the water/wastewater impact fee of two 6-inch meters Water (Meter Size (No. of meters Transportation 11clease o Cie y Liens Weed liens Paving., liens El Board up/open,structure liens Demolition liens Revised July 1 2.201 1 4 F40 RT WORTH Application No. L ACKNOWLEDGMENTS I hereby certify that the information provided is true and accurate to the best of my Knowledge. I hereby acknowledge that I have received a copy of NEZ Basic Incentives, ichgoverns,the rant n of tai abatements, 1ec givers and release of City liens, and that any VIOLATION of the tcrms, of the NEZ Basic Incentives or MISREPRESENTATION shall constitute grounds r rejection of'an application or tertnination of ince ti es at the discretion oft he City. I undcrsta d that the approval of fice waivers and,other incentives shall not be deemed, to be approval of any aspect of the project. I understand that I arn, responsible in obtaining required permits grid inspections from, the City and in ensuring the project, is located ire the correct zoning district. I understand that my application will not be processed if it is incomplete. I agree to provide any additions inn t* for dete urn elli l'bility as,requested by the City. 61fTYPED NAME)„.., o (AUTHORIZED SIGNATURE) ATE, Please mail or fax your applicatioa City of o rt Worth Planning arid,Development,Department 1000 T'hroekmorton Street,Fort Wortb.,Texas 761,02 (817)392-2222 F'avol 817 392 I lectronic version of this form is available on our website. For more i orr-nation on the EZ Program, pilease visit our web site at w,ww.for,twolrthgov.or,g/planningandde elopment r Ogee e Daly Application No In which NEZ? f)A Jill V. Councit District 000 Applicatio omplctcd Date Received Date): Conform with Zu►ning Yes ENo Type? SF Multifamily Commercial Industrial Community facilities 0 Mixed-Use Construction struction completion date, Before NE After NE Ownership/" to Control l [, ,;Z D P I TAD Account No. Consistent with tlrM I� Vye�s � N Meet affordability "test Y Yes o Minimum Capital lnvcstment` s o Reba at r higher than 30% Yes o east mixed-use de ir,itiou cs No y Tax current our this property es No Tax current on other prolperties9 Cleyes No City liens on this property? City liens on other properties.? Weed liens Ili Yes Weed liana Yes # Boiard-up/open structure liens c's 0 * Board-up/open str uctuarc Berns Yes Demolition liens Yes # Demolition liens Yes No * Pavingi tens El Yes Paving liens Yes No Order of demolition e Order a demolition YeS Yes o Ccrt ed t certification issued' W. If'not ccrt fled. rcason Referred to: OEconomic Development ElHousing []Developirnen't Water �Code 0'TPW Revised.duly 12,2011 Exhibi[t' 41"" Project Description Single Family Residence ,5 Bedrooms, 5 Bathrooms, study Breakfast Nook Living Room Laundry Room/Pantry Covered Porch Approximately 2,663 square feet OPP 77 r ,✓ f " .,..a." r, r,,,,r, r rnn�,:✓a ,. ... ir..,. ,r,, .,.,, .. r., .,� r„ ":.,. ,., f /e,N,..i� ,,, .;::,, ,',,,,,... ... ,. ,..,, �".,:. a .., ✓..r ,..✓. ,✓., r,..,.. d ✓/:.:: „ ,. i /,.. ... W✓ x J, ,.. s:,li.. .,.i.:, ,.,, ii: r,. 1 T ,.,. n ,,v.� .,1 "; ,.. � ,,fr 'i",e...e. ,,,,i,.: ..d. ,?. '...✓,. :... W .... ..i✓ 1.';n,.1, r.., ,.... .Ne,:.., ..... „,,:,r :.d, v. t.. :.,f I , ✓ � 1 n ✓, Jr .. ,, � r ! ✓ ,,.,,..,z..ti°...,.,. a ,..J• ,, Y w. ,.. ,. , 1 r. ,d. 8 ,. ,.�.,., ....,.,, e . ✓.� ,..,.rr. ......,., n r..,.,: .,.... fY.n-:,. ,. ,T..r..l. r.. .,.,,r.. r.- .,.. >'. ...,�.. s.. >. .. , ,. r v...✓5...r F s,.... 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W ,a :� �. ,,,.,.. r... ,✓�.. ,✓ l� ✓ :ti r„N, ✓ n. ✓ r goo ow. I I%-"—a N 0-0 ...,.. a ,., ,,, ,.:. ✓, r,., ,� ( ✓,,� � Y , �f ,Y i f u ,.... ,„rNN ,a ,/'.. ./✓.. r,,v.,..,: Y ”. ..� r� ,.:, . , �.. r' ,. ,,. ,/. c l✓, c r v, r. � � v n ..... ✓ ,, sYPr:n, „r,:✓✓. „„.,mv .,. r , I., '1,, ,i ,,, r t r , Y r-, a ✓f , v ✓✓ N v ✓ , r s �✓ „r, r r rra .,,,.✓ r ,a,..... ;;,,,, , ,,,,,,,,,r, ,,,r.,,... ,✓:r,...' r r!�,., ,,, ✓� ,. ,,,,.!,„r.,.,,r, ✓ wY ... ,„,,.. ., ..,r, �✓.r„��r� ,r...�.,1r,,�„o..li r,�„a'.,i...,,, f,✓r r�,/.;�nfr,.C„��^�..r�a,✓:,,r rr,✓$,�rvv.r r~'.,rr�✓,.;/�1,��r,✓a,�a.,r(Nrr„�rUw;Sae z(,vw,l�s'f�: DATE 3/2612013 REFER E N CE -26173 LOG NAME: 17N EZ271'"316S N DAG,E NO.: w CODE: C PE NON P U B LIB No SUBJECT: �ruthorize Execution of Five-Year Tax Abatement Agreement with Glenn R. and Sh�arleen lz. Leim eoh for Property Located at 2736 �eanda e Avenue in the Berry/University Neighborhood Empowerment Zone COUNCIL l I �rF ITT RECOMMENDATION: It is recommended that the fit Council the execution of ve �eer Tax batement Agreement with Glenn m and Sharleen K. Leirnbach for property located et 2736 S andege Avenue in the Berry/University Berry/University Neighborhood Empowerment Zone, 'in accordance with the Neighborhood Empowerment Zone Tax Abatement Policy and Basic Incentives. Glenn R. and Sharleen K. Leimbeoh (Property Owners)are the owners of the property described as Block 9, Lot 10, Frisco Heights Addition, an Addition to the City of't=ort✓worth, Tarrant County, Texas, according to the plat recorded in Volume 204A, Page 961, of the Plat Records of Tarrant County, Texas, at 2736 S andage Avenue, Fort Worth, Texas. The property is located within the Berry/University Neighborhood l rn iowwerment Zone NEZ . The Property Owner plans to invest an estimated amount of$262,000.00 to construct an approximately 2,663 square foot single family residence (Project). The Project will be used as rental property. The Housing and Economic Development Department reviewed the application and certified that the Property Owner and Project met the eligibility criteria to receive a NEZ Municipal Proper Tee Abatement. The NEB: Basic Incentives includes e five-year Municipal Property Tex Abatement on the increased value of improvements to the uealified owner of any new construction or rehabilitation within the N EZ. Upon execution of the Agreement, 100 percent of the assessed value of-the improvements used' for calculating municipal property tax will be frozen for e period of five years starting January 014 at the estimated pre-improvement value, as defined by the Tarrant Appraisal District JAD), for the property” as follows: Pre-Improvement TAD Value of Improvements � 0.001 Pre-Improvement Estimated Value of Land 36 0,00 Total Pre-Improvement Estimated Value $369300.00 The municipal property tax on the improved value of Project after construction is estimated in the amount of$2,240.10 per year for,a total amount of$11,200.50 over the five-year period. However, this estimate may differ from the actuaal tax abatement value, which will be calculated based on the Tarrant Appraisal District appraised value of the property. In the event of ea sale of this property, the N Z Tax Abatement Agreement may be assigned to e new ,fie 1 of 2 owner's first mortgagee or a new owner as rental property. All other assignments, must be approved' by the City Council., This property is located in COUNCIL DISTRICT 9. FISCAL INFORMATION/ClERTIFICATION: The Financial Management Services Director certifies that this action will have no material effect on City funds. TO Fur d�/Accouint/Cen!ters EROM Fund/Account/Centers Submitted' for City Manag.!!!Lr: offic Fernando Costa (6122) Jay Chapa (58,04) Origil"nat Ire g Department He Cynthia Garcia (8187) AddIftloonall Information Co.ntac,t-.. Sarah Oldle (7316) ATTACHMENTS .21736 Sandagle Elevation 2736 S:an!dage Ave NEZMapsforCounciI.r)df Page 2 of 2