HomeMy WebLinkAboutContract 44349$0010011,
CITY SECR
CONTRACT
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TAX ABATEMENT' AG EE�MENT FOR PROPERTY LOCATED IN A
NEIGHBORHOOD EMPOWERMENT ZONE
4233 S. Edgewood Terrace
ace
This TAX ABATEMENT AGREEMENT' ("Agreement") is entered into by and between the
CITY OF FORT WORTH T EXAS the "City"), a home rule municipal corporation organized rider
the laws of the State of Texan and acting by and through T.M. Higgins, its duly a h rz . City Manager,
er,
and Homero Alaniz Homer ("Owner"), owner of property located at 423,3 S. Ed, ewood Terrace, Block 2 Lot ,
Home Acres Addition, in the City of Fort Wort, Tarrant County,y Texas, and as shown on the Plat
recorded in Volume 7841, "age 13 9, Deed Records, Tarrant County, Texas.
The City Council of the City of:fort Worth "City Council" hereby prods and the City and Owner
hereby agree that the following statements are true and correct and constitute the basis upon which the
City and Owner have entered into this Agreement
A. Chapter 378 of the Texas Local, Governm ent Code allows a municipality to create
Neighborhood Empowerment ore NEZ if the municipality determines that the creation of
the tore 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 housing in the zone.
Chapter 378 of the Texas Local Government Code provides that a municipality that creates
agreements �N EZ, may eater i nto gb at r mar i,cipal property taxes on property in the zone.
C, On July 31, 2001, the City adopted basic incentives ves for property owners who wn property
located in a NEZ, stating that the City elects to be eligible to participate in tax abatement and
includingguidelines and criteria governing: tax abatement agreements entered into between
the City and v ain third parties, titled "'FEZ Basic Incentives", these were readopted on
February 5, 2013 (Resolution No., 41 8 The February 5, 2013 NEZ Incentives are attached
hereto as Exhibit"I"hereby made a part of the Agreement for all purposes.
D. The NEZ Incentives contain appropriate guidelines and criteria governing tax abatement
agreements is to be entered into by the City as contemplated by Chapter 312 of the Texas Tax
`ode, as ended ("Code").
E. On February 17,, 2009, the City Council adopted Ordinance No. 1 8482 ("Ordm' ance")r-Y,
csta4 is in "Neighborhood Empowerment reinvestment Lone No. 177"City of Fort Worth,
Texas ("Zone").
, Owner owns certain real property located entirely within the Stop Six EZ and that is more
particularly described in Exhibit "T', attached hereto and hereby made a part of this
0 101)"
Agreement for all purposes the Premises
OFFICIAL RJECORD
RECEIVED APR - 6 2013 CITY SECRETARY
FTv WORTH9 TX
4"
Owner or its assigns, plan to construct the Required Improvements, as defined in Section 1.1
of this Agreement, on the Premises to be used as a single-family residence 'that will be
Owner occupied.
On February 21, 2013, Owner submitted an application for NEZ 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 I-1, 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.
9, The terms of this Agreement, and the Premises and Required Improvements, satis this
eligibility criteria of the NEZ Incentives.
K, 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:
L OWNER'S COVENANTS,
1.1. Real Pr+ t[ty Lmprovemeits,
Owner shall construct, or cause to be constructed, on and within the Premises certain
improvements consisting of a single-family residence, of at least 1,285 square feet in size and built
to the specifications listed in Exhibit "14,"", (collectively the "Required Improvements"). Tarrant
Appraisal District must appraise the property(improvements and land) within 10% of$80,500.00.
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
5 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 114".
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1.2. Co mpletion Date of Reguirea iMrovements.
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
*, 1
approval if a building permit nas, 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 A, eement, force shall
1 1 gr majeure
mean an event neyond 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 ftom any
governmental authon-ty, acts of God, or fires. Force ma sure shall not include construction delays
caused due to purely financial matters, such as, without limitation, delays i.n the obtaining o.,
adequate financing.
1.3. Ese of Prenn'ses,
Owner covenants that the Required Improvements shall be used as the Owner's primary
residence in accordance with the NEZ Incentives. In addition, Owner covenants that throughout
the Tenn. the Required Improvements shall be maintained for the purposes, set forth in this
Agreement.
20 ABATEMENT AMOUNT&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. Amount of Abatement.
The actual amount of the Abatement granted and this Agreement shall be based upon the
increase in value of the Premises due to the Required Improvements, over its value on March 2,6,
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 1010% 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.
Fhe term of the Abatement ( "Term") shall begin on January I of the year following the
lir%
calendar year in m
which the Required Improveent is, completed ("Begm* ning vate"") and, unless
sooner terminated as herein Provided, shall end on December 31 immediately preceding the fifth
(5th) anniversary of the Beginning Date.
2A Protests Over Ap
jaraisals or Assessments.
Owner shall have the n*ght to protest and contest any or all appraisals or assessments of the
Premises and/or,improvements thereon.
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2.5. Abatement Appl,icati+ n 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
1- "- RJEOUIRIED IMPROVEMENTS.
3.1. Insl2ection of Pre nfises.
Between the execution date of this Agreement and the last day of the Term, at any time
during normal office hours throughout the Tenn 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.
3.12. Certification.
Owner shall certify annually to the City that it is in,compliance with each applicable term 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 "4". Owner must provide
documentation that Owner is using the Required Improvements as its primary residence
(collectively, the "Records") at 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 krovision of Information.
On or before March I following the end of every year during the Compliance Auditing Term
and at any other time if requested by the City, Owner shall provide infon-nation 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.
Failure to provide aU *information within the control of Owner required y this Section
3.3 shall constitute an Event of Default, as defted M* Section 4.1.
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3.4 DeternlWation 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 ofAbatement 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 giveli, year of the Tenn is therefore based upon Owner's
compliance wi,th the terms and conditions, of this Agreement during the previous year of the
Compliance Auditing'Temi.,
4. EVENTS OF DEFAULT.,
4.1- Pertned.
Unless otherwise specified herein, Owner, shall be in default of th�is Agreement if'(1) Owner
fai I s to construct the Req ui red Improvements as defi ned in Section I-1 (11) ad valorem real proper ty
taxes witn 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 tangible personal iroplerty taxes; (Iii) OWNER DOES NOT USE THE
p I
PREMISES AS PRIMARY RESIDENCE ONCE, THE ABATEMENT BE�GINS,- or (iv)
4)
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 occurred, the City
shall Provide a written notice to Owner that descn'bes the nature of the Event of Default. Owner
shall have sixty, (60) calendar days from the date of receipt of this written notice to fully cure or
have cured the Event of Default. If Owner reasonably believes that Owner w,ill require additional,
time to cure the Event of Defdult, Owner shall promptly notify the City in writing" in which case
(i) after advising the City Council in an open meeting of Owner's efforts and intent to, cure, Owner
shall have ninety(90) calendar days from the oniginal date of receipt, of the written notice, or (n) if
Owner,reasonably believes,that Olwner win require more than ninety(910) days to cure theEvent of
Default, after advising the City Council 'in an open meeting of Owner's efforts and intent to cure,,
such additionai time, if any, as, may be offer�ed by the City Council in its sole discretion.
4.31. Ternn'nation fo,r Event of Default and Payment of Liguledated Dama 0,
If an Event of Default which is defined 'in Section 4.1 has, not been cured within the time
frame spe�cifically allowed under Section 4.2, the City shall have the night 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, ofthe Premises: ('11) require unplanned and expensive additional administrative, olversight,
and involvement by the City; and (iii), otherwise hann the City, and Owner agrees that the amounts
of actual damages therefrom are speculative, in, nature and will be difficult or implossible to
ascertain. Therefore,, u, on termination of'this Agreement for any Event of Default, Owner shall
pay the City, as liquizated damages,- all taxes that were ablated in accordance with this Agreement
for each year when, an Event of Default existed and which otherwise would have been paid to the
City in the absence ofthis, 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
0
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 s ixty (60) days f'ollowing
the effective date of termination .1 o.f this Agreement. In the event that all or any portion of this
amount is not paid to the City wit'nin 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 33.01 of the Code).
oil
4.4. Termm* ation at Win,
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.
41
4.5 SexuayA oriented business & Liguo,r Stores or "ac 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 sexuany 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.
515, EFFECT OF SALE OF PREMISES.,
Woo
Except for an assignment to Owner's first mortgagee or to a ho mebuyer 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 Improvements, this Abatement cannot be assigned to a new owner of all or any portion of the
ises and/or Required Improvements without the prior consent of the C*t, Council, which consent shall
Prem' y
not be unreasonably withheld provided that (1) the City Council finds that the proposed assignee is
financially capable of meeting the termsand conditions of this Agreement and (ii) the proposed purchaser
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1 't'ng to assume all terms and conditions of Owner under this ogre ement. Owner may not
agrees VN
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 (10) calendar days of receipt of written notice from the City to
Owner.
Upon assignment to Owner's first mortgagee, or to a home buyer who will use the Required
Improvements as its primary residence or the homeowner's mortgagee, Owner shall have no further
duties 10
obligations or unes 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.
IN NO EVENTS L, THE TERM OF THIS AGREE ENS" EXTENDED IN THEEVENT
OF A SALE OR ASSIGNMENT.
THE FAILUR.E OFOWNER TO SEND THE CITY NOTIFICATION OF THE SALE, OF' T'HE
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 0,F 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 requirea, oy 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. and Owner:
City of For Worth Housing& Economic Development Dept. Homero, Alartiz
Attn-, City Manager's Office Attn-. Jay Chapa, Director 423,3 S. Ea,gewood
1000'T roc kmOrton 1000 Throckmorton Fort worth,Tex as '76119
Fort Worth,Texas, 76102 Fort,Worth'.Texas 76102
7, MIS CELL
ANEOUSI#
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.
7.2. Conflicts of Interest.
Neither the Premises nor any of the Required Improvements covered by t,nis Agreement are
owned or leased by any member of the City Counc1l, any member of the it Planru*ng or Zoning
Commission or any member of the governing body of any taxingumts,in the Zone.,
7.3. Conflicts Between Documents,.
In the event of conflict between the City's zoning ordinances, or other City ordinances or
regnilations, and this Agreement, such ordinances, or regulations shall control. In the event of any
conflict between the body of this Agreement and Exhibit 11311 the body of this Agreement shall
control.,
7A, Euture Application.
A portion or all of the Premises and/or Required Improvements may be eligible for
complete or partial exemption from ad valorem taxes as a result of' existing law or future
legislation. This Agreement shall not be construed as evidence that such exemptions do not apply
to the Premises and/or,Required Improvements.
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715. Icily Council AtithorizatleoR.
This Agreement was authorized by the City Council through approval of Mayor and
Council Communication No. C-26175 on March 26, 2,013, which, among other things, authorized
the City Manager to execute this Agreement on behalf f'the City.
A*d A--
7.6. Estoppel Cerm icate.
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 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 to of the Abatement in effect, and such other
matters reasonably requested by the party or parties to receive the certificates.
7.7. Owner S di 0
Owner shall be deemed a proper and necessary party in any litigation questioning or
challenging the validity of this Agreement or any of the underl ing laws, ordinances, resolutions or
Yi
City Council actions authorizing this Agreement and Owner shall be entitled to intervene in any
such litigation.
7.8. Venue and Jurisdicflon.
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 Di,stn*ct Court of Tarrant County, Texas. This Agreement is
performable in Tarrant County, Texas.
7.9. Severab I,
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 Head* s Not Controll'
Headings and titles used in this Agreement are for reference purposes only and shall not be
deemed a part of this Agreement.
............-1- -
7.11. Entirely of Agreement.
This Agreement, including any exhibits attached hereto and any documents incorporated
herein by reference, contains the entire understanding and agreement oetween 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. Thi's 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 BLANKI
EXECUTED this day of 2013, by the City of Fort Worth, Texas.,
EXECUTED this day of 12013,
CITY OF FORT WORTH-,' OWNER*.
By* am.!4 B
F
V4 I..#
ernando Costa Homero Alaniz
Assistant City Manager Owner
AT
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00O
005 0
Ma-ryKays
City Secret ° 0 '")
APPROVED AS TO FORM AND LEGALITY.-
B
Melinda Ramos
Assistant City Attorney
M & Co. C-26175
OFFICIAL RECORD
CITYSECRETARY
FTv WORTH9 TX
all f!..i
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Fernando Costa, Assistant
City alter of the CITY OF FORT WORTH, a municipal corporation, known to me to be the person and
officer whose name is subscr'tbed to the foregoing instrumentl and acknowledged to me that the same was
the act of the said CITY OF' FOR T'WORTH, TEXAS, a municipal corporation, that he was duly authorized
to perform the same by appropriate resolution of the City Council of the City, of Fort Worth and that he
executed the same as the act of the said City for the purposes and consideration therein expressed and in the
capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this 151" day of
1 2013.
No ary Public in and for
the State of Texas EVOiNIA DMI'ELS
My COMMISSION EXPIRES
J*10,2,013
Notary's Printed Name
STATE OF TEXAS §
COUNTY OF AR
BEFORE , the undersigned authority, on the day personally appeared Homer Homero, Alaniz, known to
me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to that he
execute.tie same for the purposes a consideration therein ex r else , in the capacity therein stated.
GIVE UNDER MY HAND AND SEAL OF OFFICE this c>415 day of
23.
N �, uc r nan
the State of Texas
No�tar's Printed Name
,r«14 r#0!
SARAH I LE
EXPIRES
My COMMISSION
NoVernber 5,2015
♦'
see
Exhi,bit 'i. NEZ Incentives
Exhibit 2: Property Descn*ption
Exhibit 3: Application: (NEZ) Incentives and Tax Abatement
Exhibit 4: Required Improvements description including kind, number and location of the proposed
0
improvements.
Exhibit 5 Final Survey
Exhibit I
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) TAX ABATEMENT POLICY AND BASIC
INCENTIVES
I. GENERAL PURPOSE AND OBJECTIVES
Chapter 3178, of the Texas Local Government Code allows a municipality 'to create a
Neighborhood Empowerment Zone (NEZ) when a "..,municipality determines that the creation
of the zone, wolulid 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 rehab ilitation of affordable housing in the zone.if
The City, by adopting the following NEZ Tax Abatement Policy and Basic Incentives,, rill
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 NEZ. For each NEZ, 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 expiration, of' a NEZ 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 policy applies, to the owners of
real, property. Nothing in 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
valor,em 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 diistrict), 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 8,0%, Area Median Family
Income (AHED 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 determ,ined by
the Tarrant County Appraisal District, during, the year rehabilitation occurs.
"Building Standards Commission" is the commission created under, Sec. 7-77, Article IV.,
Minimum Building Standards Code of the Fort Worth City Code.
Adopted—February 5:, 2013
............
"Capital Investment" includes only Real Property Improvements such as new facilities and
structures, site improvemle,nts, facility expansion, and facility m�odern�ization�. Capital l nvestrne nt
does NOT include land acquisition costs and/'or any existing improvements, or personal property
such as machinery, equipment, and/or suppil�ies and inventory).
"City of Fort Worth Tax,Abatement Policy Statement"means the policy adopted by City Council.
"'CommerciallIndustrial Development Project" is a development project which proposes to
construct or rehabilitate com,mercial�/industrial facilities on property that is or meets the
requirements to be zoned commercial, industrial or mixed use as defined by the pity of Fort
Worth Zoning Ordinance.
"'Community Facility Development Project"is a development project which proposes to construct
or rehabilitate con*imunity 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.
Eligible Rehabilitation does NOT include personal property (such as furniture, applliances,
equipment, and/or supplies),.
"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 54 and 214.
"Minority,Business Enterprise (MBED"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 facilities in which residential uses constitute 20 percent or more of the
total gross floor area, and office,, eating and entertainment, and/or retail sales and service uses
constitute 10 percent or more of the total gross floor area and is on property that is or meets
the requirements to he 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
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.
"We w Construction"' is a newly constructed habitable structure improvement requiring a
permanent foundation. This excludes accessory structures such as sheds and incidentall out
buildings.
"Primary Residence" is the residence that has a Homestead Exemption on file; with Tarrant
County Appraisal District.
Adopted— February 5, 2 013 2
�,y "CommerciallIndustrial Development
"Project" means a "'Residential Project,
Project""Community Facility Development Project "Mixed-Use Development Project" or a,
"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 Worth in accordance
with the Property Redevelopment and Tax Abatement Act codified in Chapter 3112 of the Texas
i
Tax Code, or an area designated as an enterprise zone pursuant to the Texas Enterprise Zone
Act, coldifield in Chapter 2303 of the Texas Government Code.
"Residential Proiect"means less than 3 residential units.
111111. MUNICIPAL PROPERTY TAX ABATEMENTS
A. RESIDENTIAL PROPERTIES LOCATED IN A NEZ- FULL ABATEMENT FOR 51
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 priniary, residence of the homeowner prior to
the final NEZ designation., Homeowner shall provide proof of ownership by a
warranty deeld,, affidavit of heirship, or a probated will, and shall show proof of
primary residence by homestead exemption; and
�b. Property is rehabilitated after NEZ designation and City Council approval of the
tax abatement;
c. Homeowner must perform Eligible Rehabilitation on the property after NEZ
designation equal to or in excess of 310%, of the Base Value of the Real Property
Improvements; and
d. Property is not in a tax-delinquent 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 constructed or rehabil�itated after, NEZ
designation and City Council approval of the tax abatement;
b., Property is owner-occupied 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
, ,
homesteads exemption;
c. For rehabilitated Real Property Ir prolvem:ents, 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 support rehabilitation costs;
d. Property, is not in a tax delinquent status when the abatement application is
submitted; and
Adopted—February 5, 2 013 3
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 of NEZ
designation and City Council approval 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 theReal 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.
11310i MULTI-FA MILY DEVELOPMEN�T' PIROJECT'S LOCATED IN A NEZ
1. 100%, Abatement for 5 years.
If an applicant ar)plies for a tax abatement agreement with a term of five years or
I .
less, tnis section shall apply.,
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 newly
constructed or rehabilitated multi-family development project in a NEZ must satisfy
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 wa�ive 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 (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
(a) For a multi-family,development project constructed after NEZ 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 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 Rea�l
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,o00.
Adopted—February 5, 20,13 4
2. 1%-100% Abatement of Cit Ad Valorem taxes up to 10 ears
If an applicant applies for a tax abatement agreement with a term of more than five
years, th is section shall
Abatements: for multi-family development projects for u�p, to 10 years are subject to
City Council approval. The appllicant may apply with the Housing and Economic
Development Department for such abatement.,
Years 1 throucih 5 of the Tax Abatement Agreement
Multi-family projects shall be eligible for t00% 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
(801%) 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 504 of the
Rehabilitation Act, and must be fully accessible and 2% of the total units
constructed must be fullly accessible to persons with sensory impairm ents,; and
a. For a multi-family development project constructed after NEZ desig�nationi, the
project must provide at least, -five (5) residential living units OR have a
m nimum Capital Investment of$200,000; or
b. For a rehabli�litation projlect, 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$2,00,0100.
Years 6 through- 10 of the Tax Abatement emient
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 following,:
a. At least twenty percent (201%) 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. In addition at least 5% of the
total units constructed or rehabilitated shall be compliant with the Americans with
Disability Act (AIWA) 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 imipairmients. City Council may naive or
reduce the 20% affordability requirement on a case-by,-case basin and
Adopted—February 5, 2 013 51
1 For a multi-family development project constructed after NEZ,designation, the
project must, provide at least five (5) residientiali living units OR have a
minimum Capital Investment of$200,000; or
2. For a rehabilitation project, the Real Property Improvements must be
rehabilitated after NEZ designation. Eligible Rehablilitat'ion 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$21,001,000.
b. Any other terms as City council of the City of Fort Worth deems appropriate,
including, but not limited to:
1. utilization of Fort Worths 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 const'racts;
3. property inspection;
4. commit to hire an agreed upon percentage of Fort Worths residents
5. commit to hire an agreed upon percentage of Central City res,iidents,
6. landscaping;
7. tenant selection plans; and
8.1 management plans.
C. COMMERCIAL, INDUSTRIAL AND COMMUNITY FACILITIES DEVELOPMENT
PROJECTS LOCATED IN A NEZ
1. 1 %, Abatement of City Ad Valorem taxes for 5 vears
I'Ji
If an applicant apiplies for a tax abatement agreement with a term of five years or
less,, this sections shall apply.
Ablatements, for Commercial,, Industrial and Community Facilities Development,
Projects for up to 5 years are subject, to City Council approval. The applicant may
appil with the Houis,ing 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 communiity facilities development project in a
NEZ msust satisfy the following:
a. commercial, industrial or a, community facillities, development project
A
constructed after NEZ designation must have a minimum Capital Investment of
$75,000; or
b. For a rehabilitations project, it must be rehabilitated after NEZ designations. Eligiible
Rehabiliitatioln costs on the Real Property Improvements shall be at least 30%1 of
the Base Value of the Real Property Improvements, or $75,0010y whichever is
greater.
2., 1%-100% Abatement of City Ad Valorem taxes up to 10 years,
If an applicant appilies, for a tax abatement agreement with a term of more than five
years,, this section shall
Adopted—February 51, 2013 6
i i
Abatements agreements for a Commercial, Industrial and Community Facilities
Development projects for up to 10 year are subject to City Council approval, The
applicant, may apply with the, Housing and, Economic Development Department for
such abatement.
Years 1 thro,ug,h 5 of the Tax Abatement Agreement
Col mmi ercii a�l�, Industrial and Community Facilities Development projects shall be
eligible, for 100% abatemenr t 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, colmm�unity facilities development project
constructed after NEZI designation must have a minimum Capital Investment of
$75,000; or
b. For a rehabilitation project, 'it must be rehabilitated after N esignation. Eligible
Rehabilitation costs on the Real Property Improvements, shall be at least 301%, of
the Base Value of the Real Property Improvements, or $75,000, whichever i's
greater.,
Years 61 through 101 of the 'Tax Abatement 6greemeint,
,Commercial, Industrial and Community Facilities Development projects shall be,
efigible for 1%1-1001% abatement of City ad valorem taxes for years six thr ugh ten of
the Tax Abatement Agreement upon the sa tilt aictilon of the following.*
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
b. For a rehabilitation project, it must be, rehabilitated after NE Z designation.
Eligible Rehabilitation costs on the Real Property Improvements shall be
at least 30% of the Base Value of the a li roperty Improvements, or
$75,000,, whichever is greater and meet the requirements 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 upon percentage of the total costs for construction
contracts#
3. commit to hire an agreed upon percentage of Fort Worth residents,
4. commit t ire an agreed upon percentage of Central City residents-,
and
5. landscaping.,
Adopted—February 5, 1,3 7
D. MIXED-USE DEVELOPMENT PROJECTS LOCATED IN A NE,Z
1 100% Abatement of Cit Ad Val rem taxes for 5 years
If an qpplicant ar)p Lies for a tax abatement a reement with a term of five oars or
less, this section shall a
Abatements for Mixed-Use Development Projects for up to 5 years, are subject to
City Council approval. The applicant may apply with the Housing and Economic
i
Development Department for such abatement.
In order to be eligible for a property tax abatemen�t,, upon completion, a newly
constructed or rehabilitated mixed-use development project in a NEZ must, satisfy the
following:
a. Residential uses in the project constitute 2,0 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 aside to persons with
incomes at or below eliigh�t,y percent (810%) 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 Disability 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, 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 project;
and
(1) A mixed-use development project constructed after NEZ designation must
have a minimum Capital Investment of$2,00,000; or
(2) For a rehabilitation project, it must be relhabi�litateld after NEZ designation.
Eligible Rehab,i I itation costs on the Real Property Improvements, shall be at
least 30% of the Base Value of the Real Property Improvements, or
$200,0010, whichever is greater.
2. 1%-100% Abatement of Cit,y Ad Valorem taxes up to 10 oars
If an applicant apglies for a tax abatement"agreement with a term of more than five
yearsi, this section shall a
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
E,coinom,ic Development Department for such abatement.
Years 1 through 5 of the Tax Abatement Agreement
Mixed Use Development projects shalll 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.:
Adopted—February 5, 2013 8,
a. Residential uses in the project constitute 20 percent' or more of the totall, 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 aside to persons with
incomes at or below eighty percent (80%) of area med!ia,n income based on
family size. In addition at least 5% of the total units constructed or rehabilitated
shall be compliant with the Americans with Disability Act (ADA) in accordance
with Section 50�4 of the Rehabilitation Act, and must be fully accessible and 21
of the total units constructed must be fully accessible to persons with sensory
impairments; and
b. Office, eating and entertainment, anid/or retail sales and service, uses, in the
project constitute 10 percent or more of the total Gross Floor Area of'the project,
and
c. A new mixed-use, development project constructed after N�EZ designation must
have a minimum Capital Investment of $200, 00; or 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$200,000, whichever is greater.,
'Years 6 through 10 of the Tax Abatement Ag,Leement
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 (201%) of the total units
constructed or rehabilitated shall be affordable as defined by the Ul. 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. In addition at least 5% of' t,he total units constructed or rehabilitated
shall be compliant with the Americans with Disability 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
bi. Office, eating and entertaiinment, an�d/or retail, sales and service uses in the
project constitute 10 percent or more of the total Gross, Floor Area of the project,
c., A new mixed-use development project constructed after N designation must
have a minimum Capital Investment of $200,000; or for a rehabilitation project I it
must be rehabilitated after NEZ delsignat caution. Eligible Rehabilitation costs ors
Real Property, Improvements shall: be at least 30% of the Base Value of the Real
Property Improvements, or$200,000, whichever is greater-, and
di. Any other terms as City Council of the City of Fort Worth deems appropriate,
including, but not l�iimilited, too.
Adopted—February 51, 2013 9
a. Residential uses in the project constitute 20 percent or more of the total Gross
Floor Area of the project. At least twenty percent (210%) 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. In addition at least 5% of the total units constructed or rehabilitated
shall be compliant with the Americans with Disability 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, eating and entertainment, and/or retail sales and service uses in the
project constitute 10 percent or moire of the total Gross Floor Area of'the project;
and
c. A new mixed-use devellopmeint project constructed after NEZ designation must
have a minimum Capital Investment of $2+ 0,000; or for a rehabilitation projeict I 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 throu-gh 10 of the fax Abatement Agreement
Mixed Use Development projects shall be eligible for 1-i1010% 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 U. S.
Department of Housing and rban 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 units constructed or rehabliilitated
shall be compliant with the Americans with Disability 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
bi. 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 project;
c. A new mixedi-use development project, constructed after NEZ designation must
have a 'minimum Capital Investment of $200,000; or for a rehabilitation project, it
must be, rehabiilitated, 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 $2,1010,0010, whichever is greater,- and
d. Any other terms as City Council of the City of Fort Worth deems appropriate,
including, but not limited to:
iii
Aidopted— Fe'r)ruary _3, 2013 9
1 utilization of Foirt '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 tota�l 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
8. management plans.
E. ABATEMENT GUIDELINES
1. If a NEZ, is located in a Tax Increment Financing District, City Council w"l�l determine
on a case-by-case basis if the tax abatement incentives in Section III will be offered
to eligible Projects. Eligible Projects must meet all eligibility requirements specified
in Section 111.
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 Departmen�ti. In adid'itioni, 'the City will not abate
taxes, on the value of real or personal property for any period of time prior to the year
of'execution of a Tax Abatement Agreement with the City.
1
3. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in
order to be considered "eligibly" to apply for a tax abatement under this Policy, the
Woloidhaven 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. Tax Ablaterrilents, for a new construction project will automatically terminate two
years after Council approva,l of the tax abatement if a building permit has not been
i
pulled and!, a foundation has not been poured.
5. Tax Abatements for a rehabilitation project will automatically terminate two years
after Council 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 paying property taxes for any property owned by the
owner/developer, except that an owner/delvelopier may enter into a tax
abatement agreement with the city of Fort Worth for a specific Project, if
1 the Project meets NEZ to abatement criteria; and
2". the applicant is, not responsible,for the tax delinquency for 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
delinquent taxes are paid in full
Adopted—February 5, 2013 1 0
b. Not have any City of Fort Worth liens, filed against any property o nodl by the
applicant property o�w nor/dev eloper. ",Liens"' include, but are not limited to, weed
liens, demolition liens, board-up/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 1 property owner of a residential property (including multi-family) in the
N satisfies the criteria set forth in Sections IIIA E.1. and E.2. and applies for an
abatement, a property owner may enter into a tax abatement agreement with the City
of Fort Worth. The tax abatement agreement shall automatically terrniniate 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 III. can only be granted
once for a property in a, N 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 all of' the terms of the tax
abatement agreement.8 A property owner/developer of a multifamily development,
commercial, industrial, community fa�ci�liti�els, and miixed-use development project in
the NEZ who desires a tax abatement under Sections IILB, C or D must:
a. Satisfy the criteria set forth in Sections 111.13, C or D, as applicable, and Sections
III.E.1 E.2,; and E3. and
b. File an application with the Housing and Economic Devell�opmeint Department, as
applicable- and
c. The property owner must enter into a tax abatement agreement with the City of
Fort Worth., In addition to the other terms of agreement, the tax abatement
agreement shall provide that the agreement shall automatically terminate if the
owner receives one conviction of a violation of the City of Fort Worth"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 NEZ, on which tax is being abated is sold, the new owner may
enter into a to 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 shall be limited to the year(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 ver,ify
compliance with the terms of the tax abatement agreement,, (31), terminate the
agreement if the Project contains or will contain a sexually oriented business (4
terminate the agreement, as determined in City's sole discretion, if the Project
contains or wiill contain a liquor store or package store.
Adopted—February 5, 2 013 11
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-compliance will be reported to the City Council.
On or before February 1st of every year during the life of the agreement, any
individual or entity receiving a to abatement from the City of Fort Worth shall
provide information and documenitatilon which details the property owner's
compliance with the terms, of the respective agreement and shall certify that the
owner is in compliance with each appilicabile, 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 payable.
13. If a property in the NE Z 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 cancellation of the agreement and recapture of any
taxes abated after the date on which an unspecified ass,i nmi,ent occurred.
F. APPLICATION FEE
1., An application fee, of $25-00 for all basic incentives, excluding tax abatements.
2. The, application fee for residential tax abatements governed under Section IlLA is
$100.
3. The application fee for multi-family, colmmeircila,l, industrial, community facilities and
mixed-use development projects governed under Sections III.B., C. and D.y is oine-
half of one percent (0.5%) of the proposed Project's Capital, Investment, with a $200
minimum not to exceeds 2,00:0., The Application Fee shall not be credited or
refunded to any party for any reason.
IV. PEE 'WAIVER
A. ELIGIBLE RECIPIENTS/PROPERTIES
1. City Council shall determine on a case-by-case basi's 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 Nei ghboirho:old, Empowerment Zone, in order
to be considered "eligible" to apply for a fee waiver 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
W'ort,h—however, once the NE Z 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/developer to be eligible to apply for fee waivers for a
Project,, the property owner/developer:
Adopted–February 5, 2 013 12
a., must submit an application to the pity,
b. must not be d�eli�n quen,t 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
property owner/developer, including but not limited to,, weed liens, demolition
liens, board-up/open structure liens and paving liens; and
d. of a Project that will contain or contains a liquor store, packagie store or a sexually
oriented business has received City Council's determination that the Project is
eligible to apply for fee waivers.
Approval of the application and waiver of the fees shall not be deemed to be
approval of any aspect of the Proiect. Before construc,tion�, the applicant must
I
ensure that the project is located in the correct zoning district.
strict.
B. DEVELOPMENT FEES
1 Once the Application for NEZ Incentives has been approved and certified by the City, the
following fees for services performed b the City of Fort Worth for Projects in the NEZ
adre waived for new, construction projects or rehabilitation pro'jects, that expend at least
301% of the Base Value of the Real Property Improvements on Eligible Rehabilitation
costsom
a) All Building Permit related Fees (including Plans Review and Inspections,) except as
stated in IV B. 2. below
final b) Plat Application Fee (including Concept Plan, Preliminiary Plat,, t- nal Plat, Short Form
Replat),
c,) Board of Adjustment Application Fee
d) Demolition fee
e) Structure Moving Fee
f)l Community Facilities Agreement (CFA)Application Fee
g)
Zoning Application Fee
h) Street and Utility Easement Vacation Application Fee
i) Ordinance Inspection Fees,
j) Consent Encroachment Agreement Application Fees
k) Transportation Impact Fees
1) Urban Forestry Application Fees
m), Sign Permit Fees
2. If a permit or application listed in B (1) is expired, the fee to reactivate, renew or reappi y
shall) not be waived. In addition, penalties and extension fees or re-permitting fees will
not be waived.,
3. Neighborhood Empowerment Zone Fees not waived or reduced:
a.) Investigation Fees
b.), Plan Revision Fees
c.) Change of Record Fees
d.) Inspection outside of normal business hours Reinspection Fee
e.) Annual Piro Inspection Fees
. .doted—February 5, 2 0 13 13
l
4., Other development related fees not specified above 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 100% waiver of water and wastewater impact fees will be applied.,
2. Commercial, industrial, mixed-use, or cc mmun�ity facility development projects in the
NEZl.
a., Automatic 100%, waiver of water and wastewater, impact fees up! to $155,0100 or
equivalent to two, 6-inch meters for each cornmercia,15 industrial, mixed-use or
community facility development project; wh�ichever 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 $5,5,000, then City
Colunciil approval is required. Applicant may request the additional amount of
impact fee waiver through the Planning and Development Department.
V. RELEASE OF CITY LIENS
A., ELIGIBLE RECIPIENTS/PROPERTIES
1. Project must be located in a N EZ.
2. City Council shall determine on a case-by-case basis whether a Project that will
contain or contains all 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 66 eligible
: "to appliy for release of city liens under this Policy, the
Woodhaven Community Development Corporation and the Woold haven
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 a contract for deed are
not eligible for any release of City Liens.
5. Ins order for a property owner/'developer to be elilgibile to apply for a release of city;
liens contained in Section V.B.,, C.1 D.,, and E. for a Project, the property,
owner/d�elvelloperl:
a. must submit an application to the City;
b., must, not ble delinquent in paying property taxes for any property owned by the
owner/developer;
c. must not have been subject to a Building Standards, Commission's Order of'
Demolition where the property was demolished within the last five (5) years;
d. must n�olt have any City of Fort,Worth liens filed against any other property owned
Liens" includes, but is no limited imited to,
by the applicant property own�er/developer. "
weed liens, demolition liens, bolard-up/open structure liens and paving liens;, and
Adopted—February 5, 20,13 14
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 re,liease of City liens.
6. In order for a, Rehabilitation Project to qualify for a release of city liens, the
owne r/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 Policy 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.
13, WEED LIENS
The following are elig�ible 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 perf'orm,ing, rehabilitation on multi-family, commercial, industrial, mixed-us 1,
or community facility properties.
4. Developers, constructing new multi family, commercial, industrial, mixed-use or
m
comunity facility development projects.
C, DEMOLITIONLIENS
Builders or developers developing or rehabilitating a property for a Project, are eligible to
apply for release of demolition liens for up to $30,000. Releases of d'emoliti'on liens in
excess of$3 ,0100 are subject to City Council approval.
D, BOARD-IMP/01PEN STRuc"rURE LIENS,
The following are eligible to apply for release of boiard-up/oplen, structure liens
1. Single unit owners, performing rehabilitation on their propert,ies,.,
2. Builders or developers constructing new single family homes on vacant lots.
3. Owners performing rehabilitation on multi-family, commercial, industrial, mixed-use,
or community facility properties.
4. Developers constructing multi-family,, commercial, industrial, mixed-use, or
community facility projects,.
E, PAVING LIENS
The fo,l�lowing are eligible to appiliy for release of paving 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.
Adopted—February 5 1, 2013 15
4. Developers constructing multi-family, commercial, industrial, nixed-use, or
community facility projects.
F. All other City liens will not be waived.
V1. PROCEDURAL STEP'S
A. APPLICATION SUBMISSION
1. The applicant for NEZ incentives under Sections III. IV.,, and V. must complete and
submit a City of Fort Worth "Application for NEZ Incentives" and per the appropriate
application fee to the Planning ndi Devellopment Department, as applicable.
2. The applicant for 'Incentives under Sections III.C.2 and D.2 must is complete and
submit a City of Fort Worth "Application for Tax Abatement" and pay the appropriate
application fee to the Housing and Economic Development Department. The
application fee, review, evaluation and approval will be governed by City of Fort
Worth Tax Abatement Policy Statement for Quallifying Development Projects.
3. All NEZ certifications for 'incentives will expire after five years.
4. NEZ benefits will continue for certified projects (181) eighteen months after a, NE,Z is
terminated or the 1 boundary changed.
B. CERTIFICATiONS FOR APPLICATIONS UNDER SECTIONS 111111. 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 NEZ;,
211. The Public Notification Process has been completed as stated in section IX;
3. The project is, in c,ompil�iance with the adopted Nl E,Z plan; and
4. The Council Member for the district in which the project is located has approved the
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 eligibility 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 11 s eligibility is certified, the Planning and Development Department will inform
appropriate departments administering the incentives. An orientation meeting with City
departments, and the applicant may be scheduled. The departments Include:
a. Housing and Economic Development Department'. property tax abatement for
residential properties and multi-family development projects, release of City liens.
b. Housing and Economic or mixed-Development Department: property tax, abatement for
commerciall
s,e develom
pent projects.
, industrial, community facilities, ul�
c. Planning and Development Department: development fee waivers and release of
City liens.
d. Water Department-. impact Tee waivers.
e,. Other appropriate departments,, if applicable.
Adopited—February 5, 2 013 16
C. APPLICATION 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 algreement with the applicant.
b. For a completed and certified multi-family development project application for
more than five years of tax abatement:
(11) 'The Housing and Economic Development Department will evaluate a
completed and certified application based on-,
(a)The proj'ect,'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 too,
(i), Fort Worth biased firms, and
(ii), Minority and Women Owned Business Enterprises (M/WBEs).
(d) Other items which the City and the applicant may negotiate.
(3) Consideration by the City Council
The City Coun,cill, 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 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-Idea 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 and Economic Development, Department will evaluate a
completed and certified application based on,.
(a) The project's increase in the value l of the tax base.
(b) Costs to the City (such as infrastructure participation, etc.).
(c) Percent of construction contracts committed to:
(1) Fort Worth based firms, and
(ill) Minority,and Women owned Business Enterprises (M/WBEs,).
Adopted—February 5, 2 013 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 applicanit.
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 agreement). 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 as waivers that do, not require Council
approval, the Planning and Devellopm,ent Department will review the certified
applicant 11 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 appliGatioln 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 will release 'the appropriate liens, on 1 tax abatement
applicants. The Pllanniinig & Development Department will release liens on NEZ basic
incentives applicants.
Vii. REFUND POLICY
In order for an owner developer of a Project in a NIIEZ to receive a refund of development
fees or impact fees, the conditions set forth in the Refund of Development and Impact
Fee Policy, attached as Attachment"A", must be satisfied.
Vill. OTHER INCENTIVES
A. The City Council may add the following incentives to a NEZ in the Resolution adlolptilng
the NEZ:
Adopted—February 5, 2013 18
............. .................. ...................... ................._.......... ...............-.............._.__............,",
'A a A .
1. muni icpal sales tax refund
2. Homebuyers, assistance
31" Gapi financing,
4. Land assembly
5. Conveyance of tax foreclosure properties
6. Infrastructure improvements
7'. Support for Low Income Housing Tax Credit (LIHTC) applications
8. Land use 'Incentives and zoning/building code eixempitionsi, e.1g.,, mixed-use, density
bionus, parking exemption
9. Tax Increment Financing, (T IF)
10. Public Improvement District(PI,D)
11. Tax-exeri: bond financing
12., New Model Blocks
13. Loan guarantees
11 4,. Equity investments
15. Other incentives that will effectuate the intent and purposes of NE Z.
IX. Piublic Notification
a. Subject ito subsection (b), in order for an owner/developer to apply to, receive any
incentives provided for under the NE Z Tax Abatement Policy and Basic Incentives,
an ocan er/deve,loper must meet with the following persons and organizations to
discuss the Project:
1. the Council Member for the District the Project is located- and
2. the neighborhood associations or community based organizations registered
with the city that are within 300 feet of the proposed Project. The
measurement of the distance, between the proposed project and Neighborhood
Associations or Community Biased Organizations shall be along the property
lines of the street fronts and from front door to front door, and in direct line
across the intersections.
b. Subsection (a) shall be satisfied upon:
1. the owner/developer meeting with the City, Council Member for the District the
Project is located and the neighborhood, associations or community based
organizations registered with the city that are within 300 feet of the proposed
Project; or
2. meeting, 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 community 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 itaftempts to meet with the registered organizations will be
satisfied with the following,-,
1. a copy of a certified letter sent to the registered organization describing 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.
Adopted—February 5, 210 13 19
X. Ineliamble Pr2jects
The following Projects or Businesses shall not be eligible, for any incen ti�ves under the City 31 of
Fort Worth's Neighborhood Em owr erment Zone (NE Z) 'Tax Abatement Policy and Basic
Incentives:
1. Sexually Oriented Businesses
2,. Non-residential mobile structures
MIS Denied Applications
a. NEZ applications will be denied 3 days, after sub nisei on if all required,
documentation is not received by the City.
b., The applicant will have 90 days after the date of denial to resubmit the NE,Z
application without paying a new application fee.
Adopted—February 5, 2 013 20
ATTACHMENT A
REFUND OF DEVELOPMENT AND IMPACT FEES POLICY
Purpose
This refund policy is for the purpose of establishing the conditions under which the City
may refund development and impact fees, normally waived through the Neighborhood
Empowerment Zone (NEZ).
Applicability
Unless expressly accepted, this policy applies to all development and impact fees
waived, by the City through the NEZ.
Under the N Tax Abatement Pol,icy and Basic Incentives, City Departments are
authorized to waive impact and development fees for gum projects located in a
designated NE Z. The impact fees include only water and, sewer impact fees, up to
$55,000 for commercial, industrial, mixed-use or community facilities projects. The
development fees that can be waived -through the NEZ include.-
1. All building permit fees (including Plans Review and Inspections)
2. Plat application feel (including concept plan, preliminary plat, final plat, short form
replat)
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 f''these waivers, applicants need to obtain, a, certification letter from
the Planning and Development Department.
Conditions for Refunds
The City will consider refunds only when circumstances beyond the developers control
prevent them from obtaining the qualification letter from the Planning and Development
Department.
A property owner and/or,developer may qualify for a refund if the proposed
development project meets all criteria to receive a fee waiver under the NEZ fax
Abatement and Basic Incentives Policy and.
a. The owner and,/or developer was not made aware of the NEZ incentives at the
time the fees were paid; or
b. The owner and/or developer was mistakenly told, that his/her property was not in
a designated NEZ; or
Adopted—February 5, 2 013 21
c. The owner and/or 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
d'. City Council authorizes a City Department to issue a refund to the
owner/deve,lolper.
Refund Charge
A refund charge will:, be assessed to help defray administration cost associated with the
processing of refund check. The charge shall be 20% of the amount of the refund. This
charge will be automatically deducted from the total refund amount.
Statute of Li'mftations
Any requiest, action or proceeding concerning the refund of fees, normally,waived
through the N must be filed within ninety days following the date that the fees were
paid. Any applicant who does not submit a refund request within 90 days of the
transaction, shall, not qualify for a refund.
To obtain a refund the applicant needs to:
submit a NEZ pipilicat,ioin to the Planning and Development Department for
determination of the eligibility for NE,Z fee waivers, and
submit a written request to the Department in which the fees, were paid, Upon
roc i�ving a confirmation from the Planning and Development Department that the
project meets all NEZ fee waiver critena,, that Department shall process the request
based on the qualifications, discussed in this policy.
Exemptions
The, pro vis,ions of this poleic,y do not apply to:
a. Fees that are not waived;, through the NEZ, pr gram; and
b. Taxes and special assessments; and
c,. City liens such as, mowing, bloard-u�pi, trash, demolition and paving liens.
An applicant shall not qua,lify 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
he/she paid the fees' or
c. The applicant paid the fees, before the refund polio' was put in place'; or
d. The applicant paid the fees before the designation date of the Z.
Disclaimer
In -the event of any conflict between the city's s ordinances or regulations and this policy,
such ordinances or regulations shall control. In the event of any conflict between this
Adopted—February 5, 201 13 22
policy and other policies or regulations adopted by the City Department issuing the
refund, such departmen�t policies or regulations shall control. The City reserves the right
to deny any or all request,for refunds.
Adopted—February 5, 2.,013 23
Exhibit"2"'
Prope�rty Description
4233 S. Edgewood Terrace, Block 2, Lot 5, Home Acres Addition, in the City of `o Worth, Tarrant
County, Texas, and as shown on the P'lat recorded in Volume 7841, Page 1319, Deed Records, Tarrant
County, Texas
Exhiblet 3
F ORT WORTH
AApplication No.
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (N'EZ) PROGRAM
INN
PROJECT CERTIFICATION APPLICATION
1. APPLICATION CHECK LIST - Please submit the following documentation:
El A completed application form
A list of all properties owned by the applicant, owner, developer, associates, principals, partners,and agents
in the Cii'Lty' Fort Worth
I
Non Ref4n�d:able Application fee—For all Basic Incentives applications excludling Tax Abatement the
application lee is$25.00, For multifamily,commercial, industrial,commercial facilities, and mixed-use tax
abatement applications': 0.5 �of the total Capital Investment of the project.,with a$200.00 minimum and
trot to exceed$2,000.00; For residential tax abatement applications.- $100.00, per house.
Proof of ownership, such as a warranty deed, affidavit of heirship,or a probated will OR evidence of site
control, such as option to buy (A registered warranty deed is required for tax abatement application.)
El Title abstract,of the property(only if applying for release of City liens)
A reduced 1,1 x 17 floor plan,site plan,and site elevation with
a written detailed project description that includes a construction time line
El A detailed line item budget showing the cost breakdown for the project
Copy of Incorporation Papers noting all principals, partners,and agents if applicable
Reguired- Meet with the Councilmember and Neighborhood &other Organizations,representing the NEZ
as outlined in the Public Notice requirement of the F Policy and Guidelines revised April 6, 2004 or
followed guidelines,of N Strategic Plan if a Strategic Plan is in place for the specific NEZ.
E] Support letter from Woodhaven Neighborhood Association and Woodhaven Community Development
Corporation(For projects located in Woodhaven NE Z only)
INCOMPLETE APPLICATIONS WILL NOT BE PROCESSED FOR CERTIFICATION UNTIL ALL REQUIRED
DOCUMENTS SHOWN IN THE ABOVE CHECKLIST ARE SUBMITTED WITHIN 30 DAYS AFTER THE
APPLICATIONIS,RECEIVED.
YOU MUST APPLY FOR TAX ABATEMENT BEFORE 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 THE
ISSUANCE OF NF Z CERTIFICATION DEPENDING ON THE COMPLEXITY OF YOUR PROJECT'. ALL
BUILDING PERMITS MUST BE PULLED WITHIN THE 12 MONTH PERIOD THAT CERTIFICATION WAS
APPROVED, R WITHIN THE 12 MONTH PERIOD THAT THE TAX ABATEMENT WAS APPROVED,OR YOU
WILL BE REQUIRED TO RE-APPLY FOR NF Z INCENTIVES.
[I. APPLICANT l AGENT INFORMATION
1. Applicant,,. 2, Contact Person:
3. Address: Ull
Street city State Zip
4. Phone no.. 1�&%Ijj oil: 63'1 5 5. Fax No..
6. E m,a"l
7. Agent if any),
8. Address:
Street City State Zip
9. Phone no.. 10., Fax,No.:
1,1. Email:
Revised July 12,201 1 1
FORT WORTH Appkation.No.
PROJECT ELIGIBILITY
1. Please list down the addresses and legal descriptions of the project and other properties, your
i
organiz aton owns 'in Fort Worth, Attach, metes and bounds description 'if no address or legal
description is avallable. Attach a map showing the location of the project,
Table 1 P,rope nershl p
Address Zip Code Le, -Aftser"nt
Pr9ect Location) Subdivision,Name Lot No., Block No.
F
25,
Other properties owned in the City of Fort Worth continue on a separate sheet and attach 'if necessary.
2. For each property listed 'in Tablet, please check the boxes below to indicate l"l;
• there are taxes past due;or
• there are City liens;or
• You (meaning, the applicant, developer, associates, agents, principals) have been subject to a dui ding
Standards Commission's, Order lo�f Demolition where the property was demolished within the last five
years.
Table 2 Pry!:!y Taxes and City Liens
Property Clity Liens on Property
Address Taxes Weed Board-up/Open Demolition Paving Order of
Due Liens, Stucture Liens Liens Liens Demollition
Li
Li
LJ
Li
Li
(Please attach additional sheets of paper as needed.)
If there are taxes due or l,lens against any proplerty in the City of Fort Worth you ma not be eligible
for NE Z incentives
Revised July 12,20,11
F r RT o T H Appfication No.
3. Do you own other properties under other name,s9. EJ Yes i No
if Yes, please specify
44, Does the proposed project conform,with City of':Fort Worth Zoning? 'des 0 No
1 f no,, what steps are being taken to insure compliance9.
5. Project
Type: Single Family Multi..Family Commercial Industrial Community Facilities Mixed-Use
EzOwner Occupied
Rental,Property
6. Please describe the proposed residential or commercial proJect-.ALUJ hoLc ..k
U C
7. If your project is a commercial,industrial,or mixed-use project,please describe the types of
businesses that are being proposed. 1-k
81 is this a new construction or rehab project?' 'New construction El Rehab.....
9. How much *18 the total development cost of your project?
10. Will the eligible rehabilitation work* equal to at least 30% of the Tarrant ppraisal District (TAD)
rzy
assessed value of the structure during the year rehabilitation occurs" N
%&Yes No
*Eligible rehabilitation includes only physical improvcments to real property. It does NOT 'Include:
Front yard fencing consisting of chain-hnk or solid material construction; personal property such as furniture,
apipliances,equipment, and/or supplies.Total eligible,rehabilitation costs shall equal to or exceed 301%of the
'FAD,appraised'value of the structure during the year rehabilitation occurs.
It. How much is the total square footage of your project? N�tl square feet
If'applying for a tax abatement p,lease answer quest-Ions 12— 16.;If not skip to part, III Incentives
12. For a single-family homeownershi t). mixed-luse, or multi-family development pro".ect
I ., please rill out
the number of residential units based on income range of owners or renters in the following table.
Table 3 Number of Residential Units and Income Range of Owners or Renters,
Number of Units Percentage
Income Range
> 80%of AMFI**
At or below 80%of AMFI
Total Units
**AMFI:Area Median Family Income. Please see attachment for income and housing payment guidelines.,
13. For a multifamily proJect to be quallfied for tax abatement, at least 20% of total units shall be
atTordable to families at or below 80% of'AMF:I. Check the box if you are requesting a waiver of this
requirement. 1:1
14. For a commercial, 'Industrial or communi!y facilities proiect, indicate square footage of non-
residential space.
Commercial Industrial Community Facilities
square feet square feet square feet
Revised July 12,2011 3
V"
0T WORTH Application No.
15. How much will be your Capital Investment*** on the project? Please use the following, table to provide
the details and amount of your Capital Investment(Attached additional sheets if necessary),
Table 4 Iteml`zed Budget of the Project
Items Amount, Notes,, ,
Total
***Capital Investment includes only real property improvements such as new facilities and structures,site improvements, facility
expansion, and facility modernization. Capital Investment DOES NOT include land acquisition costs and/or any existing
impirovements.1 or personal property(such as machinery,equipment,andJor supplies or inventory).
16. For a commercial, 'Industrial community facili!Y o,,r mixed-use pro*ect, how many employees will the
project generate
17. For a nixed-use pr9j'ect,please indiicate the percentage of all uses in the project in the following table.
Table 5 Percentage of Uses, "in a Mlied-Use Project
Type Square Footage Percentage
Residential
Office
Eating
Entertainment
Retail sales
Service
Totem,
III, INCENTIVES What incentives are you applying for?
a I
Munid'Pal PMRefly Tax Abatements
1
Must pr Ide Final Plat Cabinet and Slide for Tax Abatement Cabinet Slide
5 years E] More than 51 years
e idiential owner occupied []Residential Rental Property �]„, partments(5 plus units) Commercial
st
Development Fee Waivers
All building,permit related fees(including Plans Review and Inspections)
Plat application fee(Including concept plan, preliminary plat, Final plat,short form replat)
Zoning application fee Board of Adjustment application fee
Demolition, fee Structure moving,fee
Community Facilities Agreement(CF'A)application fee
Street and utility easement vacation application fee
Impact Fee Waivers, -"rhe maximum watertwastewater impact fee waiver amount for a commercial, industrial, mixed-
of two 6-inch meters
use, or community facil�4 development project is equivalent to the water/wastewater impact fee
-neters
Water (Meter Size (No. of i I ransportation
Release of 9±Y Liens
Weed liens Paving liens Board Lip/open stricture liens Demolition liens
Revised July 12,,2011 4
Fo u WORTH Application No.
III.. ACKNOWLEDGMENTS
hereby carol that the inf soon provided is true and accurate to the best of my knowledge, b hereby
acknowledge that I have received copy of NEZ Basic Incentives,which governs the granting of tax abatements, fee
waivers, an, release, of City liens, and that, any VIOLATION of the terms of the NEZ Basic Incentives or
MISREPRESENTATION squall constitute ro unds for rejection of an application Mr termination of 'ince nt ves at the
discretion oft the City.
1 Linderstand,that the approval of'fee waivers and other incentives shall not be deemed to e approval of any aspect of'
the project. 1 understand that l m responsible In obtaining re �u red permits and inspections ons from the City and in
ensuring the project is located, in the correct zoning district.
I understand that my application will riot be processed 'if it is incomplete. 1 agree to provide any additional
information for determining°rmining e1 gi lity as requested by the City.
rgew Ate�Aj_� %-.1 r -nLmj� I
w
(PRINTED A ATE)
GPI
I'll
1 01 oil
I N 1 r
.iii „ ^;' ,.. �1 p%%•,r � i ,a �,/ ii. n; a i. "� i r/ / i fi✓/.11 r
i i ✓i"
,. ,,.� NOON"
Electronic version this fog is ava,ilable on our wcbs, te., For,more information on the NEZ Program, please visit
our web site at www.fortworthg,ov.oirg/planninganddeve ptnent
F ice Use Only
Application o. D which NEZ? Council District
ppl ca
t o Completed ate(Received etc Conform with Zoning? Yes [:]No
Type? SF Multifamily Commercial Industrial C m unty "acilities e "s
�ort u completion ate cry After EZ Owners,hip/Site Control Yes 0 No
m
TAD Account N . Consistent with the NEZ,plan Yes No
Meet affordability test ees [:]No Minimum Capital Investment? Yes N
Rehab at or higher thm '3 ,cs 0 No Meet mixe d-use definition.? � Yes N
' `a,x current on this property )Yes 0 No "rax current on other properties?, es No
City, liens,or this,property City liens on other properties?
Weed liens EYes EJ No * Weed liens Yes
9 Board-up/open structure liens Yes Z___"No . Board-up/open,structure liens Yes
Demolition liens El Yes allo * Demolition liens Yc
* Paving liens Yes No * Paving liens Yes
OrN o
Order of demolition ye * Order of demolition Ye
Certified? yes _ Certified by Date certification issued?E:] No
If not certified,reason
Referred to-. []Economic Development DHousing []Development titer Code T
Reprised,tiny 12,2011 5
Exhibit"4"
Project DFact i'ption
Single Family Residence
3 Bedrooms
2 Bathrooms,
Dining Room
Living Room
Covered Porch
Approximately 1,285 square feet
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DATE. � �� � �� ���°�� I��� C-26175 LOG NAME. '7NEZ'23n�E GEC �C
M
I ■.,
C'DF! C TYPE: PUBLIC Igo
Ir
I
i
c ONSENT HEARING.
SUBJECT. /uthorize Execution of Five-Year Tax Abatement Ar1reement with I-lomero Alaniz for
Property Located at 423131 South Edgewood Terrace in the Stop Sir Neighborhood
Empowerment Zone COUNCIL DISTRICT 5),
RECOMMENDATION
It is recommended that the City Council aulthorize the exeII�outilon of a five-year Tax Abatement
with Romero Alaniz for the proper at 4233 South Edgewood Terrace in the Stop Six
Neighborhood Empowerment Zone, in accordance with,the Neighborhood Empowerment done Tax
Abatement Pollioy and Basic Incentives.
DISCUSSION-,-I
hlomero,Alaniz Property owner) is the owner of'the property described as Block 2 Lot b Horne
Acres Addition, an Addition to the City of Port°Forth, Tarrant County, Texas, according to the plat:
recorded in Volume 7841, Pace 1319, of the Plat: Records of Tarrant County, Texas, at 4233 South
Edgewood Terrace, Fort Worth, Texas. The property is located within the Stop Six Neighborhood
Empowerment Zone NEZ).
The Property owner plans to invest an estimated amount of$80,500.00 to construct an
approximately 1,2,85 square foot single family residence (Project),. The Project will be used as the
primary residence of the Owner.
The Housing and Economic Development Department reviewed the application and certified that the
Property Owner and Project reset the eligibility criteria to receive a NEZ Municipal Property Tax
Abatement. The NEZ Basic Incentives includes a five-year Municipal Property Tax Abatement on the
increased value of improvements to the qualified owner of any new construction or rehabilitation
within the NEZ.
Upon execution of the Agreement 100 percent of the assessed value of the improvements used for
calculating municipal property tax will be frozen for a period of five years starting January 2014 at the
estimated pre-improvement value, as defined by the Tarrant Appraisal District(TAD), for the proper
as follows:
Pre-improvement TAD Value of Improvements $ 0.00
Pre-Improvement Estimated Value of Land 6 000.00
Total Pre-improvement Estimated Value $69000.00
The municipal property tax on the improved value of Project after construction is estimated in the
amount of$688.28 per year for a total amount of$3,,441.38 over the five-year period. However, this
estimate may differ from the actual tax abatement value, which will be calculated based on the Tarrant
Appraisal District appraised value of the property.
In the event of a sale of this property, the NEZ Tax Abatement Agreement may be assigned to a new
ownerls,first mortgagee or a new homeowner as their primary res,i+den+ e. All other assignments must
be approved by the City Council.
This property is located in COUNCIL D11STRICT 5.
Page f of'2
FISCAL INFORIVIATION/ClERTIFICATIO-No
The Financial Management Services Director certifies that this action will have no material effect on
City funds.
TO
Fund/Account/Centers FROM, Fund Account/C enters
Submifted for Cit 'anager's Office Fernando Costa (6122)
O,rl"ginat'ing,Depart,ment ,Head-.I Cynthia Garcia (8187)
Jay Chapa (5804)
Addifionall Informaflon Coot, rct Sarah Odle (7316)
ATTACHMENTS
4233 S End gewood Elevation.,
4233 S Edgewo!od NEZ rCouncil PCIT
Page 2 of 2,