HomeMy WebLinkAboutContract 57398 FORT WO RT H @ C1'N SECRETARY
'-- 40 -"' t-,-01TRACTNO. 5739
,%� �p� NEIGHBORHOOD EMPOWERMENT ZONE
PQ TAX ABATEMENT AGREEMENT
New construction single-family-owner
1205 E. Butler Street
This TAX ABATEMENT AGREEMENT ("Agreement") is entered into by and between the CITY
OF FORT WORTH, TEXAS (the "City"), a home rule municipal corporation organized under the laws of
the State of Texas and acting by and through David Cooke, its duly authorized City Manager, in accordance
with the authority granted under Chapter 378 of the Texas Local Government Code, and Jose Sifiientes and
Fabiola Gil Espiritu,owner of property located 1205 E.Butler Street,Lot 2,Block 2,Weisenge ger Sunny
Hill Garden Addition, an Addition to the City of Fort Worth, Tarrant County, Texas, according to the Final
Plat Recorded in Volume 388-B, Page 192, Plat Records, Tarrant County, Texas.
The City Council of the City of Fort Worth ("City Council") hereby finds and the City drid Owner
hereby agree that the following statements are true and correct and constitute the basis upon wiu�li the Ciiy
and Owner have entered into this Agreement:
A. On January 29, 2019, the Fort Worth City Council adopted Ordinance No. 23552 (the
"Ordinance") establishing "Neighborhood Empowerment Reinvestment Zones No.1R through 6R" City
of Fort Worth, Texas (the "Zones") and adopted Resolution No. 5042 establishing "Designation of the
Neighborhood Empowerment Zone Areas One through Six" (the "NEZ").
B. Owner owns certain real property located entirely within Zone 6R and that is more r articularly
described in Exhibit "1", attached hereto and hereby made a part of this Agreement for all pinposes (the
"Premises").
C. Owner or its assigns plan to construct the Required Improvements, as defined in Section 1.1 of
this Agreement, on the Premises (the "Project").
D. On December 21, 2021, Owner submitted an application for tax abatement t the City
concerning the Premises (the "Application"), attached hereto as Exhibit"2" and hereby made a art of this
Agreement for all purposes.
E. The contemplated use of the Premises, the Required Improvements and the terms of this
Agreement are consistent with encouraging development of the Zone in accordance with the purposes for its
creation and are in compliance with the NEZ Incentives,the Ordinance and other applicable laws,ordinances,
rules and regulations.
F. Written notice that the City intends to enter into this Agreement, along with a copy of this
Agreement,has been furnished in the manner prescribed by the Code to the presiding officers of the governing
bodies of each of the taxing units in which the Premises is located.
OFFICIAL RECORD
CITY ECRETARY
Page 1 WORTH
NEZ Tax Abatement Agreement-Jose Sifuentes and Fabiola Gil Espiritu FT. ,TX
1205 E.Butler Street
M&C 22-0216 Anmroved:March 29.2022
NOW, THEREFORE, the City and Owner, for and in consideration of the terms and co ditions 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 approximately 3,387 square feet under roof,
2,530 square feet living space in size and built to the specifications listed in Exhibit "3", (collectively
the "Required Improvements"). 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 Abatemeni shall not
constitute an Event of Default, as defined in Section 4.1, provided that the conditions n the first
sentence of this Section 1.1 are met and the Required Improvements are used for the purp ses and in
the manner described in Section 1.3.
1.2. Completion Date of Required Improvements.
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 dela d because
of force majeure, in which case the two years shall be extended by the number of days cor prising 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, vhich 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 Premises.
Owner covenants that the Required Improvements shall be constructed and c tinuously
used as the primary residence of the Home Owner in accordance with the NEZ Incentives. Home
Owner shall file for a Homestead Exemption with Tarrant County Appraisal District January 1 of
the year following the calendar year in which the Required Improvement is completed. In addition,
Owner covenants that throughout the Term, the Required Improvements shall be maintai ied 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 Impro ements, as
specifically provided in this Section 2 ("Abatement"). Abatement does not include taxes from cther taxing
entities.
2.1. Amount of Abatement.
The actual amount of the Abatement granted under this Agreement shall be based upon the
increase in value of the Premises due to the Required Improvements, over its value as determined
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NEZ Tax Abatement Agreement-Jose Sifuentes and Fabiola Gil Espiritu
1205 E.Butler Street
M&C 22-0216 ADDroved:March 29.2022
by Tarrant Appraisal District in February 2022, and this amount is $0.00.
If the square footage requirement of the Required Improvements are less than as I rovided in
Section 1.1 of this Agreement, Owner shall not be eligible to receive any Abatement under this
Agreement.
2.2 Increase in Value.
The Abatement shall be 100% of the increase in value from the construction of th Required
Improvements up to a maximum of$259,466.00 and shall apply only to taxes on the increase in
value of the Premises due to construction of the Required Improvements. In other words by way of
example only, if the increase in value of the Required Improvements over its value in Febivary 2022,
in a given year is $260,000.00, Owner's Abatement for that tax year shall be capped and calculated
as if the appraised value of the Required Improvements for that year had only been $ 59,466.00.
The Abatement shall not apply to taxes on the land,nor shall the abatement apply to mineral interests.
2.3. Term of Abatement.
The term of the Abatement ( "Term") shall begin on January 1 of the year fol owing the
calendar year in which the Required Improvement is completed ('Beginning Date") d, unless
sooner terminated as herein provided, shall end on December 31 immediately preceding th e fifth(5")
anniversary of the Beginning Date.
2.4 Protests Over Appraisals or Assessments.
Owner shall have the right to protest and contest any or all appraisals or assessor nts of the
Premises and/or improvements thereon.
2.5. Abatement Application Fee.
The City acknowledges receipt from Owner of the required Application fee of$1 0.00. The
application fee shall not be credited or refunded to Owner or its assigns for any reason.
3. RECORDS,AUDITS AND EVALUATION OF REQUIRED IMPROVEMENTS.
3.1. Inspection of Premises.
Between the execution date of this Agreement and the last day of the Term, at any . e during
normal office hours throughout the Term and the year following the Term and following reasonable
notice to Owner, the City shall have and Owner shall provide access to the Premises in older for the
City to inspect the Premises and evaluate the Required Improvements to ensure complian le with the
terms and conditions of this Agreement. Owner shall cooperate fully with the City durin3, any such
inspection and/or evaluation.
3.2. Certification.
Owner shall certify annually to the City that it is in compliance with each applica le term of
this Agreement. The City shall have the right to audit at the City's expense the Required provement
with respects to the specifications listed in Exhibit "3". Owner must provide docume tation that
Owner is using the Required Improvements as its primary residence (collectively, the "I cords") at
Page 3
NEZ Tax Abatement Agreement-Jose Sifuentes and Fabiola Gil Espiritu
1205 E.Butler Street
M&C 22-0216 Aooroved:March 29.2022
any time during the Compliance Auditing Term in order to determine compliance with 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 Provision of Information.
On or before the last business day in April following the end of every year during the
Compliance Auditing Term 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 vith each of
the terms and conditions of this Agreement for that calendar year.
Owner must also provide documentation of compliance to Tarrant Appraisal District (TAD)
each year of the abatement by filling out and returning Tax Abatement Form 50-116 froin the TAD
website no later than the last business day in April for each year Owner is requesting tax abatement.
Failure to provide all information within the control of Owner required by t is Section
3.3 shall constitute an Event of Default, as defined in Section 4.1.
3.4 Determination of Compliance.
On or before August 1 of each year during the Compliance Auditing Term,the City shall make
a decision and rule on the actual annual percentage of Abatement available to Owner for the following
year of the Term and shall notify Owner of such decision and ruling. The actual percentage of the
Abatement granted for a given year of the Term is therefore based upon Owner's compliance with the
terms and conditions of this Agreement during the previous year of the Compliance Auditing Term.
4. EVENTS OF DEFAULT.
4.1. Defined.
Unless otherwise specified herein, Owner shall be in default of this Agreement if(i) Owner
fails to construct the Required Improvements as defined in Section 1.L; (ii) ad valorem real property
taxes with respect to the Premises or the Required Improvements, or its ad valorem taxes ith respect
to the tangible personal property located on the Premises, become delinquent and Own r does not
timely and properly follow the legal procedures for protest and/or contest of any such ad valorem real
property or tangible personal property taxes; (iii) OWNER DOES NOT USE THE 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").
4.2. Notice to Cure.
Subject to Section 5, if the City determines that an Event of Default has occurre , the City
shall provide a written notice to Owner that describes the nature of the Event of Default. caner shall
have sixty(60) calendar days from the date of receipt of this written notice to fully cure or ave cured
the Event of Default. If Owner reasonably believes that Owner will require additional tine to cure
the Event of Default, Owner shall promptly notify the City in writing, in which case (i) aft r advising
the City Council in an open meeting of Owner's efforts and intent to cure, Owner shall I ave ninety
(90) calendar days from the original date of receipt of the written notice, or (ii) if Owner seasonably
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NEZ Tax Abatement Agreement-Jose Sifuentes and Fabiola Gil Espiritu
1205 E.Butler Street
M&C 22-0216 ADnroved:March 29.2022
believes that Owner will require more than ninety(90)days to cure the Event of Default,after advising
the City Council in an open meeting of Owner's efforts and intent to cure,such additional time,if any,
as may be offered by the City Council in its sole discretion.
4.3. Termination for Event of Default and Payment of Liquidated Damages.
If an Event of Default which is defined in Section 4.1 has not been cured within the time frame
specifically allowed under Section 4.2, the City shall have the right to terminate this Agreement
immediately. Owner acknowledges and agrees that an uncured Event of Default will (') harm the
City's economic development and redevelopment efforts on the Premises and in the vicinity of the
Premises; (ii) require unplanned and expensive additional administrative oversight and i volvement
by the City; and (iii) otherwise harm the City, and Owner agrees that the amounts of actuil 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 wh an Event
of Default existed and which otherwise would have been paid to the City in the abse ce of this
Agreement. The City and Owner agree that this amount is a reasonable approximation of actual
damages that the City will incur as a result of an uncured Event of Default and that this Section 4.3 is
intended to provide the City with compensation for actual damages and is not a penalty. This amount
may be recovered by the City through adjustments made to Owner's ad valorem property t�appraisal
by the appraisal district that has jurisdiction over the Premises. Otherwise, this amounts all be due,
owing and paid to the City within sixty (60) days following the effective date of termina ion of this
Agreement. In the event that all or any portion of this amount is not paid to the City within sixty(60)
days following the effective date of termination of this Agreement, Owner shall also be liable for all
penalties and interest on any outstanding amount at the statutory rate for delinquen taxes, as
determined by the Code at the time of the payment of such penalties and interest (current y, Section
33.01 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; (ii) there shall be no recapture of any taxes previously
abated; and (iii)neither party shall have any further rights or obligations hereunder.
4.5 Sexually oriented business & Liquor Stores or Package Stores.
a. Owner understands and agrees that the City has the right to terminate this agreement if
the Required Improvements contains or will contain a sexually oriented business.
b. Owner understands and agrees that the City has the right to terminate this agreement
as determined in City's sole discretion if the Required Improvements contains or will contain a
liquor store or package store.
5. EFFECT OF SALE OF PREMISES.
Except for an 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 which City Council hereby agrees to,
the Abatement granted hereunder shall vest only in Owner;however if Owner sells the Premises and Required
Page 5
NEZ Tax Abatement Agreement-Jose Sifuentes and Fabiola Gil Espiritu
1205 E.Butler Street
M&C 22-0216 ADDroved:March 29.2022
Improvements,this Abatement cannot be assigned to a new owner of all or any portion of the Pre ises and/or
Required Improvements without the prior consent of the City Council, which consents 11 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 grantec hereunder
following ten(10) 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 AIgreement.
IN 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 60 DAYS OF THE TRAN FER 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 DELIVERY.
6. NOTICES.
All written notices called for or required by this Agreement shall be addressed to the following, or
such other party or address as either party designates in writing, by certified mail,postage prepaid, or by hand
delivery:
City: Owner:
City of Fort Worth Jose Sifuentes and Fabiola Espiritu
Attn: City Manager 1609 Hickory St.
200 Texas Street Grand Prairie, Texas 75050
Fort Worth, Texas 76102
and
Neighborhood Services Department
Attn: Director
200 Texas Street
Fort Worth, Texas 76102
7. MISCELLANEOUS.
7.1. Bonds
The Required Improvements will not be financed by tax increment bonds. This Agreement is
subject to the rights of holders of outstanding bonds of the City.
Page 6
NEZ Tax Abatement Agreement-Jose Sifuentes and Fabiola Gil Espiritu
1205 E.Butler Street
M&C 22-0216 Annroved:March 29.2022
7.2. Conflicts of Interest.
Neither the Premises nor any of the Required Improvements covered by this Agr ement are
owned or leased by any member of the City Council, any member of the City Planning or Zoning
Commission or any member of the governing body of any taxing units in the Zone.
7.3. Conflicts Between Documents.
In the event of any conflict between the City's zoning ordinances, or other City ordinances or
regulations, and this Agreement, such ordinances or regulations shall control. In the event of any
conflict between the body of this Agreement and Exhibit"3",the body of this Agreement shall control.
7.4. Future Annlication.
A portion or all of the Premises and/or Required Improvements may be eligible for complete
or partial exemption from ad valorem taxes as a result of existing law or future legislation. This
Agreement shall not be construed as evidence that such exemptions do not apply to the Premises
and/or Required Improvements.
7.5. City Council Authorization.
This Agreement was authorized by the City Council through approval of Mayor and Council
Communication No. 22-0216 on March 29, 2022, which, among other things, authorized the City
Manager to execute this Agreement on behalf of the City.
7.6. Estollnel 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, ii requested,
will be addressed to the Owner, and shall include, but not necessarily be limited to, statements that
this Agreement is in full force and effect without default (or if an Event of Default exists the nature
of the Event of Default and curative action taken and/or necessary to effect a cure),the remaining term
of this Agreement, the levels and remaining term of the Abatement in effect, and such other matters
reasonably requested by the party or parties to receive the certificates.
7.7. Owner Standing.
Owner shall be deemed a proper and necessary party in any litigation questioning or
challenging the validity of this Agreement or any of the underlying laws, ordinances, resolutions or
City Council actions authorizing this Agreement and Owner shall be entitled to intervene in any such
litigation.
7.8. Venue and Jurisdiction.
This Agreement shall be construed in accordance with the laws of the State of Texas and
applicable ordinances, rules, regulations or policies of the City. Venue for any action under this
Agreement shall lie in the State District Court of Tarrant County, Texas. This Agreement is
performable in Tarrant County, Texas.
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NEZ Tax Abatement Agreement-Jose Sifuentes and Fabiola Gil Espiritu
1205 E.Butler Street
M&C 22-0216 Anoroved:March 29.2022
7.9. Severability.
If any provision of this Agreement is held to be invalid,illegal or unenforceable,the validity,
legality and enforceability of the remaining provisions shall not in any way be affected or impaired.
7.10 Headings Not Controlling.
Headings and titles used in this Agreement are for reference purposes only ands all not be
deemed a part of this Agreement.
7.11. Entirety of Agreement.
This Agreement, including any exhibits attached hereto and any documents incorporated
herein by reference, contains the entire understanding and agreement between the City and Owner,
their assigns and successors in interest, as to the matters contained herein. Aiiy 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.
Page 8
NEZ Tax Abatement Agreement-Jose Sifuentes and Fabiola Gil Espiritu
1205 E.Butler Street
M&C 22-0216 Annroved:March 29.2022
CITY OF FORT WORTH: OWNER:
By: /Gc+i.,• C.L__ By: /
Fernando Costa Jose ifuentes
Assistant City Manager
' �.r y
ATTEST:
" biola Gil Espiritu
By:
JaA4tte Goodall
C y Secretary
APPROVED AS TO FORM AND LEGALITY:
By:
ePinda Ramos
Sr. Assistant City Attorney
M& C: 22-0216
Date Approved: March 29, 2022
OFFBC L RECORD
Page 9 CITY ECRETARY
NEZ Tax Abatement Agreement-Jose Sifuentes and Fabiola Gil Espiritu FT. ORTH,TX
1205 E.Butler Street
M&C 22-0216 Anuroved:March 29.2022
STATE OF TEXAS §
COUNTY OFARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Fernando Costa,
Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation, known to me to
be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged
to me that the same was the act of the said CITY OF FORT WORTH, TEXAS, a muideipal
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 or the
purposes and consideration therein expressed and in the capacity therein stated.
G EN UNDER MY HAND AND SEAL OF OFFICE this day of
2022.
P�P& ►ARIA S SANCHEZ
No Public in and for Notary ID#2256490
the State of Texas ��� MY Commission E2025
Of
s
�} December 19,
STATE OF TEXAS §
COUNTY OFARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Jose Sit' entes
and Fabiola Espiritu, 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.
E2&D.E01 HAND AND SEAL OF OFFICE this day of
a
Notary ublic in f r dh
^>R'°�e
the State of Texas SARAH J ODLEZ� Notary ID#6215320
9T`) My Commission Expires
November 8, 2023
STATE OF TEXAS §
COUNTY OFARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Fabio a Gil
Espiritu, known to me to be the person whose name is subscribed to the foregoing instrume t, and
acknowledged to me that she executed the same for the purposes and consideration t iereiri
expressed, in the capacity therein stated.
G E Y HAND AND SEAL OF OFFICE thi ' day of
2.
'av , SARAH J ODLE
NO 11C In an fo = Notary ID#6215320
the State of Texas
My Commission Expires
�rFOr-�` November 8, 2023
OFFICIAL RECORD
Page 10 CPTY SECRETARY
NEZ Tax Abatement Agreement -Jose Sifuentes and Fabiola Gil Espiritu F7 WORTH,TX
1205 E.Butler Street i
M&C 22-0216 ADDroved:March 29.2022
Exhibit 1: Property Description
Exhibit 2: Application: (NEZ) Incentives and Tax Abatement
Exhibit 3: Required Improvements description
Page 11
NEZ Tax Abatement Agreement-Jose Sifuentes and Fabiola Gil Espiritu
1205 E.Butler Street
M&C 22-0216 AUUroved: March 29.2022
Exhibit 1
Property Description
1205 E. Butler Street, Lot 2, Block 2, Weisengerger Sunny Hill Garden Addition, an Addition to the City of Fort
Worth, Tarrant County, Texas, according to the Final Plat Recorded in Volume 388-B, Page 192, 13lat Records,
Tarrant County, Texas.
Exhibit 2
FORT WORTH: Application#NMI- 0V�� 51
City of Fort Worth
Neighborhood Empowerment Zone (NEZ) Application for Incentives
• ee • e
Property 1
OwnerlDeveloper
Last First M.I.
Address: I U U P r �V
Street Address J City State Zip
Phone: Email aSeS e Ilt%"c�, , ! ,C oi?'1
Contact: e A�
(If different) Last First •M'I' •
Phone: �d ,��'- j�� Email: �i✓i�t��Cl/ lYt�
o e
NEZ certific ons a project a#owner spec' ie.Plea descri a your project: e,-O
Project Typ
❑ ❑ ❑ ❑ ❑
Single Family Multi-Family Commercial Industrial Community Facilities Mixed-Jse
*Please be advised if the project address is zoned as a designated historical property(HQ and your project consists of new
construction or exterior renovations,approval of your project is required prior to NEZ application submittal. Written aporovalfroln
the Historic and Cultural Landmarks Conintission(HCLC)must be attached to the NEZ application. For questions orfurther
information concerning historic projects,please contact the HCLC at(817)392-8000*
Project Address: •,t T
Street Address
Legal Description: 2 Z S e e 5"
Lot Block 'Addition
YES NO YES NO
New Construction/Addition: [!? / Remodel/Rehab: ❑
Total New Sq.Ft. g' f Total Development Cost: 4]31: M�
For a single family project,will the NEZ certified property be occupied by YESe NO
the property owner as a primary residence? Vr
If you selected No,please specify if this property will be sold to a homeowner as a primary residence or ust d as rental
property.
If your project is a Commercial or Mixed Use project,please list all specific uses that are being proposed:
Incentives
YES AO
Do you wish to apply for a Municipal Property Tax abatement for this project? 19 ❑
If the above answer is yes,please contact the City of Fort Worth Neighborhood Services Department at(817)392-7315 or
visit http://fortwortbtexas, og v/neig bborhoods/NEZ/for additional information.Tax Abatements are processed after NEZ project
certification and must go before the City Council for a vote.House Bill 3143 took effect on September 1,2019,Which
requires at least 30 days advance notice be given of the tax abatement.Due to compliance with HB 3143,the minimum time
to process a tax abatement to be on the City Council agenda for vote is 12 to 14 weeks after the date of certification.
Applicants requesting tax abatement ntay not submit for a buildinz permit until the abatement has been approved by the City
Council and the applicant has signed a contract
Revised 10/16/19 SO
FORT WORTH
Application# "� f��
City of Fort Worth
Neighborhood Empowerment Zone (NEZ) Application for Incentives
YES
Do you wish to apply for a release of NEZ Policy eligible City liens?
Weed,Paving,Demolition and Board Up/Open Structure liens may be released for qualifying projects.
. •
YES NO
Will a Zoning Change application be necessary for this project? ❑
Current Zoning: roposed Use: ( P IUD,►
Signature of Zoning Staff: Date: DtTwbey ;)Gl' 9�Cj I
PLEASE INITIAL NEXT TO EACH STATEMENT
—1�&I understand that my application will not be processed if it is incomplete.I agree to provide any additional information
for determining eligibility as requested by the City.If the additional information is not submitted within 30 days,th application
will be denied and application fees paid will not be reimbursed.
yn BSI hereby certify that the information provided is true and accurate to the best of my knowledge.
I hereby certify that all documents and information required by the Application Submittal Checklist is attiched.
I hereby acknowledge that I have read the NEZ Basic Incentives and Tax Abatement Policy,which govern the granting
of tax abatements,fee waivers and release of City liens, and that any VIOLATION of the terms of the NEZ Basic Incentives
or MISREPRESENTATION shall constitute grounds for rejection of an application or termination of inc e tives at the
MI
' n of the City.
understand that the approval of fee waivers and other incentives shall not be deemed to be approval of any aspect of
the project. I understand that I am responsible for obtaining required permits and inspections from the City and in ensuring the
project is located in the correct zoning district.
I understand that if there are taxes due or liens against any property I own in the City of Fort Worth may not be
eligible for NEZ incentives.
I hereby certify that the project plans submitted with this application meet the NEZ design guideline rec uircments as
listed below or meet Strategic Plan ,guidelines for the Berahill/Mason Heights, Oakland Corners and Stop Six areas as
outlined on the NEZ webpage.I understand that if the project plans do not meet these design requirements, all permits will be
put on hold pending correction. If I choose to relinquish my NEZ certification instead of meeting the design i equirements,
payment for all fees waived by the City up to that point will be due immediately and the building permit will not be issued until
payment is made.
a.No metal buildings except for industrial projects.
b.All new construction projects must contain 70%masonry product
c.Exceptions to the masonry product will be made at the City's discretion for design district overlays(whe e applicable)
and approved planned development projects.
d.Compliance with NEZ design guidelines for Council adopted NEZ Strategic Plans (Beiryhill/M son Heights,
Oakland Corners and Stop Six)is required for certification.
e.Attached garages for new single family homes may not extend more than 4 feet past the front building wall.
,SI understand that T must pay all associated fees at the time of project application and/or permit submittal if I wish to
submit permits prior to determination of NEZ eligibility.This includes setting up an escrow account with the City.I understand
that some permits may not b issued le NEZ eligibility is being established.Exam p e:Ap licatio s that are, questing Tax
Abate t. /
i�S'� vtn/ 'C 5
Printed Name of Property Signature Wroper Date
Owner/Developer Owner/Developer
Revised 10116119 SO
Exhibit 3
Project Description
New Construction of a single family residence
• 3,387 under roof, 2,530 square feet living space
• 1 Story
• 4 Bedroom, 3 Full Bath
• Covered Back Patio
• Living Room
• Laundry/Utility Room
• Kitchen
• Dining Room
• Separate Walk In Pantry
• 2 Car Garage
• Covered Front Porch
• Brick Veneer Exterior
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 03/29/22 M&C FILE NUMBER: M&C 22-0216
LOG NAME: 19NEZ1205EBUTLER
SUBJECT
(CD 9)Authorize Execution of a Five-Year Tax Abatement Agreement with Jose Sifuentes and Fabiola Gil Espiritu for the Construction of a Single-
Family Dwelling of Approximately 3,387 Square Feet and Having a Cost of at Least$317,120.00 on Property Located at 1205 . Butler
Street, near the Brentmoor Neighborhood and within Neighborhood Empowerment Zone and Reinvestment Zone Area Six
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a five-year Tax Abatement Agreement with Jose Sifuentes and Fabiola Gil
Espiritu for the construction of a single-family dwelling of approximately 3,387 square feet and having a cost of at least$317,12d.00 on property
located at 1205 E. Butler Street, Near the Brentmoor Neighborhood and Within Neighborhood Empowerment Zone and Reinvestment Zone Area
Six,in accordance with the Neighborhood Empowerment Zone Program Basic Incentives and Tax Abatement Policy.
DISCUSSION:
Jose Sifuentes and Fabiola Gil Espiritu, (Property Owners)are the owners of the property described as Lot 2, Block 2,Weisengerger Sunny Hill
Garden Addition,an addition to the City of Fort Worth,Tarrant County,Texas,according to the Plat recorded in Volume 388-B, Page 192, Plat
Records,Tarrant County,Texas,located at 1205 E. Butler Street, Fort Worth,Texas.The property is located near the Brentmoor neighborhood and
within Neighborhood Empowerment Zone(NEZ)Area Six.
The Property Owners plan to invest an estimated amount of$317,120.00 to construct a single-family residence of approximately 3,387 square
feet(Project).The Project will be used as the homeowner's primary residence.
The Neighborhood Services Department reviewed the application and certified that the Property Owners and Project met the eligibility criteria to
receive a NEZ Municipal Property Tax Abatement.The NEZ Basic Incentives include a five-year Municipal Property Tax Abatement on the
increased value of improvements to the qualified owner of any new construction or rehabilitation within the NEZ. Residential own r occupied tax
abatements are capped at the annual median home value as reported by the National Association of Realtors for Tarrant County�This value is
updated annually and is currently$259,466.00. i
Upon execution of the Tax Abatement Agreement(Agreement),the total assessed value of the improvements used for calculating municipal
property tax will be frozen for a period of five years starting January 2023 at the estimated pre-improvement value as defined by the Tarrant
Appraisal District(TAD) in February 2022 for the property as follows:
Pre-Improvement TAD Value of Improvements $0.00
Pre-Improvement Estimated Value of Land $7,000.00
otal Pre-Improvement Estimated Value $7,000.00
The municipal property tax on the improved value of the Project after construction using the capped value is estimated in the amount of
$1,900.59 per year,for a total amount of$9,502.95 over the five-year period.However,this estimate may differ from the actual t�x abatement
value,which will be calculated based on the TAD appraised value of the property up to the capped value.
In the event of a sale of this property,the Agreement may be assigned to a new owner's first mortgage or a new owner as a primary residence.All
other assignments must be approved by the City Council.
This property is located in COUNCIL DISTRICT 9.
A Form 1295 is not required because:This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon final approval of the Tax Abatement Agreement,a loss of an estimated$9,502.95 in property tax
revenue may occur over the five year period.This reduction in revenue will be incorporated into the long term financial forecast upon the Tax
Abatement being officially granted.
Submitted for City Manager's Office bk Fernando Costa 6122
Originating Business Unit Head: Victor Turner 8187
Additional Information Contact: Sarah Odle 7316
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