HomeMy WebLinkAboutContract 57734 CITY SECRETARY�T 7
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TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A
NEIGHBORHOOD EMPOWERMENT ZONE
2608 W. Dickson Street
This TAX ABATEMENT AGREEMENT ("Agreement")is entered into by and between the
CITY OF FORT WORTH,TEXAS(the"City"),a home rule municipal corporation organize under
the laws of the State of Texas and acting by and through David Cooke,its duly authorized City M nager,
and ARMOR TEXAS INSURANCE AGENCY, INC., ("Owner") of property located at 2608 W.
Dickson Street, Block 1, Lots 7, 8 and the East 50 feet of Lot 9, Carroll-Stone Addition, an addition to
the City of Fort Worth, Tarrant County, Texas, according to the Plat thereof recorded in Volume 388-
B, Page 194, Plat Records, Tarrant County.
The City Council of the City of Fort Worth ("City Council") hereby finds and the City and
Owner hereby agree that the following statements are true and correct and constitute the bass upon
which the City and Owner have entered into this Agreement:
A. On January 29, 2019, the Fort Worth City Council adopted Ordinance No. 3552
(the "Ordinance") establishing "Neighborhood Empowerment Reinvestment Zones 0
.111
through 611" City of Fort Worth, Texas(the"Zones")and adopted Resolution No.5042 estab ishing
"Designation of the Neighborhood Empowerment Zone Areas One through Six" (the "NEZ").
B. Owner owns certain real property located entirely within Zone 6R and that is more
particularly described in Exhibit "I", attached hereto and hereby made a part of this Agr ement
for all purposes (the "Premises").
C. Owner or its assigns plan to construct the Required Improvements, as defined in ection
1.1 of this Agreement, on the Premises (the "Project").
D. On February 18,2022, Owner submitted an application for tax abatement tot e City
concerning the Premises (the "Application"), attached hereto as Exhibit "2" and hereby ade a
part of this Agreement for all purposes.
E. The contemplated use of the Premises,the Required Improvements and the terms of this
Agreement are consistent with encouraging development of the Zone in accordance with the
purposes for its creation and are in compliance with the NEZ Incentives, the Ordinance and other
applicable laws,ordinances, rules and regulations.
F. Written notice that the City intends to enter into this Agreement, along with a opy of
this Agreement,has been furnished in the manner prescribed by the Code to the presiding offices 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 to s and
conditions set forth herein, do hereby contract, covenant and agree as follows:
OFFICIAL RECORD
1. OWNER'S COVENANTS. CITY SECRETARY
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1.1. Real Property Improvements.
Owner shall construct, or cause to be constructed, on and within the Premises!certain
improvements consisting of an interior and exterior remodel of an existing commercial building
of approximately 4,100 total square feet for use as an event space and having Construction
Costs, excluding land, upon completion of $223,049.00 including site development costs
(collectively,the"Required Improvements")but such Construction Costs shall be red iced by
any construction cost savings. The type, number and details of the Required Improvem nts are
described in Exhibit"3". After construction of the Required Improvements is complete Owner
shall provide a copy of the final construction invoices to City. The invoices shall hen be
attached and made a part of this Agreement and shall be labeled Exhibit"4". Minor va .ations,
and more substantial variations if approved in writing by both of the parties to this Agr ement,
in the Required Improvements from the description provided in Exhibit"3" shall not c stitute
an Event of Default, as defined in Section 4.1,provided that the conditions in the first s ntence
of this Section 1.1 are met and the Required Improvements are used for the purposes and in the
manner described in Exhibit"3".
1.2. Construction Costs.
"Construction Costs" shall mean site development costs (including demoliti n and
environmental abatement), hard construction costs; contractor fees; engineering fees;
architectural fees; design and consulting fees; and development fee and permitti g fees
expended by Owner directly in connection with construction of the Required Improvements.
The City recognizes that Owner will request bids and proposals from various contractors in
order to obtain the lowest reasonable price for the cost of the Required Improvements, In the
event that bids and proposals for the Required Improvements are below $223,049.00 in
Construction Costs for work substantially the same as that provided in Exhibit "3" and
otherwise described in this Agreement, the City will meet with Owner to negotiate in good
faith an amendment to this Agreement so that Owner is not in default for its failure to lexpend
at least $223,049.00 in Construction Costs, with the understanding that the City's staff will
recommend, but cannot guarantee, approval of such amendment by the City Council. The
final site plan shall be in substantially the same form as the site plan submitted and attached
as Exhibit "3". Minor variations, and more substantial variations if approved in wr ting by
both parties to this Agreement, in the Required Improvements from the description provided
in the Application for Tax Abatement shall not constitute an Event of Default, as defined in
Section 4.1, provided that the conditions in the first sentence of this Section 1.1 are met and
the Required Improvements are used for the purposes and in the manner described in Exhibit
"3»
1.3. Completion Date of Required Improvements.
Owner covenants to complete construction of all of the Required Improvements by June
14, 2024, (the "Completion Deadline"). The abatement will automatically terminate t o years
after Council approval if the Required Improvements are not complete. The 1equired
Improvements shall be deemed complete upon the issuance of a final certificate of occupancy
for the Required Improvements by the Development Services Department. If the Owner fails to
expend at least Two Hundred Twenty-Three Thousand, Forty-Nine Dollars ($223,049.00) in
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Construction Costs for the Required Improvements by the Completion Deadline as provided in
Section 1.1 of this agreement; the City shall have the right to terminate this Agreement by
providing written notice to the Owner without further obligation to the Owner hereafter.
1.4. Use of Premises.
Owner covenants that the Required Improvements shall be constructed and the
Premises shall be continuously used as an event space, and in accordance with the description
of the Project set forth in the Exhibit "3". In addition, Owner covenants that throughout the
Term,the Required Improvements shall be operated and maintained for the purposes s t forth
in this Agreement and in a manner that is consistent with the general purposes of enco aging
development or redevelopment of the Zone.
2. ABATEMENT AMOUNTS, TERMS AND CONDITIONS.
Subject to and in accordance with this Agreement, the City hereby grants to OWT er real
property tax abatement on the Premises, the Required Improvements, as specifically provided in this
Section 2 ("Abatement"). Abatement of real property taxes only includes City of FortWorth-
imposed taxes and not taxes from other taxing entities.
2.1. Amount of Abatement.
The actual amount of the Abatement granted under this Agreement shall be based
upon the increase in value of the Required Improvements over their values as determined by
TAD in February 2022, and this amount is $183,596.00:
One Hundred percent (100%) of the increase in value from the
construction of the Required Improvements.
If the square footage requirement and the appraised value of the R quired
Improvements are less than as provided in Section 1.1 of this Agreement,except that such
minimum construction costs shall be reduced by construction cost savings, Owner shall
not be eligible to receive any Abatement under this Agreement.
2.2. Increase in Value.
The abatement shall apply only to taxes on the increase in value of the Premises due
to construction of the Required Improvements and shall not apply to taxes on the land, nor
shall the abatement apply to mineral interests.
2.3. Abatement Limitation.
Notwithstanding anything that may be interpreted to the contrary in this Agr ement,
Owner's Abatement in any given year shall be based on the increase in value of the required
Improvements over its value in February 2022, up to a maximum of$733,912.00 for 11 three
buildings and $334,573.00 for this building. In other words, by way of example on1;, if the
increase in value of the Required Improvements over its Tarrant Appraisal District det rmined
value in February 2022, in a given year on all three buildings on the account is $800 000.00,
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Owner's Abatement for that tax year shall be capped and calculated as if the appraised value of
the Required Improvements for that year had only been $733,912.00.
2.4. Protests Over Appraisals or Assessments.
Owner shall have the right to protest and contest any or all appraisals or assessments
of the Premises and/or improvements thereon.
2.5. Term.
The term of the Abatement(the"Term")shall begin on January 1 of the year fol owing
the calendar year in which a final certificate of occupancy is issued for the Required
Improvements on all three buildings (`Beginning Date") and, unless sooner terminated as
herein provided, shall end on December 31 immediately preceding the fifth (5") anni ersary
of the Beginning Date.
2.6. Abatement Application Fee.
The City acknowledges receipt from Owner of the required Abatement applica ion fee
of one half of one percent (.5%) of Project's estimated cost, not to exceed $2,00 The
application fee shall not be credited or refunded to any party for any reason.
3. RECORDS, AUDITS AND EVALUATION OF PROJECT.
3.1. Inspection of Premises.
Between the execution date of this Agreement and the last day of the Term
("Compliance Auditing Term"), at any time during normal office hours throughout the Term
and the year following the Term and following reasonable notice to Owner,the City sh ll 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 condition of this
Agreement. Owner shall cooperate fully with the City during any such inspection and/or
evaluation.
3.2. Audits.
The City shall have the right to audit at the City's expense the financial and usiness
records of Owner that relate to the Project and Abatement terms and conditions (collectively,
the "Records") at any time during the Compliance Auditing Term in order to de ermine
compliance with this Agreement and to calculate the correct percentage of Abatement
available to Owner. Owner shall make all applicable Records available to the Cit on the
Premises or at another location in the City following reasonable advance notice by the City
and shall otherwise cooperate fully with the City during any audit.
3.3. Provision of Information.
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On or before March 1 following the end of every year during the Compliance A diting
Term and if requested by the City, Owner shall provide information and documents on for
the previous year that addresses Owner's compliance with each of the terms and con1ditions
of this Agreement for that calendar year. This information shall include, but not be limited
to, the number and dollar amounts of all construction contracts and subcontracts awarded on
the Project.
Owner must also provide documentation of compliance to Tarrant Appraisal District
(TAD) each year of the abatement by filling out and returning Tax Abatement Form 0-116
from the TAD website no later than April 30t" for each year Owner is requesting tax
abatement.
Failure to provide all information within the control of Owner required by this Sect' n 3.3
shall constitute an Event of Default, as defined in Section 4.1.
3.4. Determination of Compliance.
On or before August 1 of each year during the Compliance Auditing Term, the City
shall make a decision and rule on the actual annual percentage of Abatement available to
Owner for the following year of the Term and shall notify Owner of such decision and ruling.
The actual percentage of the Abatement granted for a given year of the Term is therefore based
upon Owner's compliance with the terms and conditions of this Agreement during the
previous year of the Compliance Auditing Term.
4. EVENTS OF DEFAULT.
4.1. Defined.
Unless otherwise specified herein, Owner shall be in default of this Agreeme t if(i)
Owner fails to construct the Required Improvements as defined in Section 1.1.; (ii) ad 1 alorem
real property taxes with respect to the Premises or the Project, or its ad valorem taxes with
respect to the tangible personal property located on the Premises,become delinquent an Owner
does not timely and properly follow the legal procedures for protest and/or contest of any such
ad valorem real property or tangible personal property taxes or (iii) OWNER DOES NOT
COMPLY WITH CHAPTER 7 AND APPENDIX B OF THE CODE OF ORDIP'ANCE
OF THE CITY OF FORT WORTH(collectively, each an"Event of Default").
4.2. Notice to Cure.
Subject to Section 5, if the City determines that an Event of Default has occurred, the
City shall provide a written notice to Owner that describes the nature of the Event of Default.
Owner shall have sixty(60) calendar days from the date of receipt of this written notice to fully
cure or have cured the Event of Default. If Owner reasonably believes that Owner will require
additional time to cure the Event of Default, Owner shall promptly notify the City in w ting,in
which case (i) after advising the City Council in an open meeting of Owner's efforts and intent
to cure, Owner shall have ninety (90) calendar days from the original date of recei of the
written notice, or (ii) if Owner reasonably believes that Owner will require more than ninety
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(90) days to cure the Event of Default, after advising the City Council in an open meeting of
Owner's efforts and intent to cure, such additional time, if any, as may be offered byte City
Council in its sole discretion.
4.3. Termination for Event of Default and Payment of Liquidated Damages.
If an Event of Default, which is defined in Section 4.1, has not been cured within the
time frame specifically allowed under Section 4.2,the City shall have the right to termin to this
Agreement immediately. Owner acknowledges and agrees that an uncured Event of Default
will (i) harm the City's economic development and redevelopment efforts on the Premises and
in the vicinity of the Premises; (ii) require unplanned and expensive additional admini trative
oversight and involvement by the City;and(ill)otherwise harm the City, and Owner agr es that
the amounts of actual damages there from are speculative in nature and will be diff cult or
impossible to ascertain. Therefore, upon termination of this Agreement for any Event of
Default, Owner shall not be eligible for the Abatement for the remaining Term and Own r shall
pay the City, as liquidated damages, all taxes that were abated in accordance with this
Agreement for each year when an Event of Default existed and which otherwise would have
been paid to the City in the absence of this Agreement. The City and Owner agree tt1t
this
amount is a reasonable approximation of actual damages that the City will incur as a r of
an uncured Event of Default and that this Section 4.3 is intended to provide the Ci y with
compensation for actual damages and is not a penalty. This amount may be recovered by the
City through adjustments made to Owner's ad valorem property tax appraisal by the appraisal
district that has jurisdiction over the Premises. Otherwise, this amount shall be due, owng and
paid to the City within sixty (60) days following the effective date of termination of this
Agreement. In the event that all or any portion of this amount is not paid to the City wit] sixty
(60) days following the effective date of termination of this Agreement, Owner shalt also be
liable for all penalties and interest on any outstanding amount at the statutory rate for delinquent
taxes, as determined by the Code at the time of the payment of such penalties and interest.
Notwithstanding anything herein to the contrary, damages due under this paragraph shal I be the
sole responsibility of Owner or its permitted assignee, as applicable.
4.4. Termination at Will.
If the City and Owner mutually determine that the development or use of the P emises
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 Agreerri nt 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; (h) there
shall be no recapture of any taxes previously abated; and (iii) neither party shall h ve any
further rights or obligations hereunder.
4.5. Sexually oriented Business & Liquor Stores or Package Stores.
a. Owner understands and agrees the City has the right to terminate this
agreement if the Project contains or will contain a sexually oriented business.
b. Owner understands and agrees that the City has the right to terminate this
agreement as determined in City's sole discretion if the Project contains or will contain a
liquor store or package store.
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5. EFFECT OF SALE OF PREMISES.
Owner may assign this Agreement and all or any portion of the benefits provided her under
to ARMOR TEXAS INSURANCE AGENCY, INC., or an Affiliate without the consent of t: City,
provided that (i) prior to or contemporaneously with the effectiveness of such assignment, Dwner
provides the City with written notice of such assignment, which notice shall include the nam of the
Affiliate and a contact name, address and telephone number, and(ii)the Affiliate agrees in writing to
assume all terms and conditions of Owner under this Agreement. For purposes of this Agreement, an
"Affiliate" means all entities, incorporated or otherwise, under common control with Owner,
controlled by Owner or controlling Owner. For purposes of this definition, "control" meatis fifty
percent(50%)or more of the ownership determined by either value or vote. Owner may not otherwise
assign this Agreement or any of the benefits provided hereunder to another party without the onsent
of the City Council, which consent shall not unreasonably be withheld or delayed, provided hat (i)
the City Council finds that the proposed assignee is financially capable of meeting the to s and
conditions of this Agreement and (ii)the proposed assignee agrees in writing to assume all to s and
conditions of Owner under this Agreement. Any attempted assignment without the City C°°� ncil's
prior written consent shall constitute grounds for termination of this Agreement and the Abatement
granted hereunder following ten (10) calendar days of receipt of written notice from the Zity to
Owner.
6. NOTICES.
All written notices called for or required by this Agreement shall be addressed to the fol owing,
or such other party or address as either party designates in writing, by certified mail, postage I repaid,
or by hand delivery:
City: Owner:
City of Fort Worth ARMOR TEXAS INSURANCE AGENCY, NC.
Attn: City Manager Attn: Hedy Pena
200 Texas Street 5324 Wedgemont Circle N.
Fort Worth, TX 76102 Fort Worth, TX 76133
and
Neighborhood Services Department
Attn: Director
200 Texas Street
Fort Worth, TX 76102
7. MISCELLANEOUS.
7.1. Bonds.
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The Required Improvements will not be financed by tax increment bonds. This
Agreement is subject to rights of holders of outstanding bonds of the City.
7.2. Conflicts of Interest.
Neither the Premises nor any of the Required Improvements covered By this
Agreement are owned or leased by any member of the City Council, any member of the City
Planning or Zoning Commission or any member of the governing body of any taxing imits in
the Zone.
7.3. Conflicts Between Documents.
In the event of any conflict between the City's zoning ordinances, or other City
ordinances or regulations, and this Agreement, such ordinances or regulations shall control.
In the event of any conflict between the body of this Agreement and Exhibit"3", the body of
this Agreement shall control.As of June 14,2022,the City is unaware of any conflicts lb tween
this Agreement and the City's zoning ordinance or other ordinances or regulations.
7.4. Future Application.
A portion or all of the Premises and/or Required Improvements may be elil, ble for
complete or partial exemption from ad valorem taxes as a result of existing law oi future
legislation. This Agreement shall not be construed as evidence that such exemptions do not
apply to the Premises and/or Required Improvements.
7.5. City Council Authorization.
This Agreement was authorized by the City Council through approval Mayor and
Council Communication No. 22-0457 on June 14, 2022,which, among other things, authorized
the City Manager to execute this Agreement on behalf of the City.
7.6. Estoppel Certificate.
Any party hereto may request an estoppel certificate from another party hereto so long
as the certificate is requested in connection with a bona fide business purpose. The ce ificate,
which if requested will be addressed to the Owner, shall include,but not necessarily be limited
to, statements that this Agreement is in full force and effect without default (or if an Event of
Default exists, the nature of the Event of Default and curative action taken and/or necessary
to effect a cure), the remaining term of this Agreement, the levels and remaining terni of the
Abatement in effect, and such other matters reasonably requested by the party or pErties to
receive the certificates.
7.7. Owner Standing.
Owner shall be deemed a proper and necessary party in any litigation questi ning or
challenging the validity of this Agreement or any of the underlying laws, ord' .ances,
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resolutions, or City Council actions authorizing this Agreement and Owner shall be crititled
to intervene in any such litigation.
7.8. Venue and Jurisdiction.
This Agreement shall be construed in accordance with the laws of the State ol Texas
and applicable ordinances, rules, regulations, or policies of the City. Venue for any action
under this Agreement shall lie in the State District Court of Tarrant County, Texa . This
Agreement is performable in Tarrant County, Texas.
7.9. Severability.
If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be
affected or impaired.
7.10. Headings Not Controlling.
Headings and titles used in this Agreement are for reference purposes only a d shall
not be deemed a part of this Agreement.
7.11. Entirety of Agreement.
This Agreement, including any exhibits attached hereto and any documents
incorporated herein by reference, contains the entire understanding and agreement between
the City and Owner,their assigns and successors in interest,as to the matters contained herein.
Any prior or contemporaneous oral or written agreement is hereby declared null and void to
the extent in conflict with any provision of this Agreement. This Agreement shall not be
amended unless executed in writing by both parties and approved by the City Counc' . This
Agreement may be executed in multiple counterparts, each of which shall be consid :red an
original, but all of which shall constitute one instrument.
(REMAINDER OF PAGE INTENTIONALLY BLANK)
CITY OF FORT WORTH: ARMOR TEXAS INSURANCE
AGENCY, INC.
A Texas Corporation 0MCIAL RECORD
MY SECRETARY
Page 9 of 13 FT. WORTH,TX
NEZ Tax Abatement with Armor Texas Insurance Agency, Inc.
2608 W. Dickson Street, Approved by M&C 22-0457, June 14, 2022
By: TGc.T .� 47arne:
Fernando Costa #tor
Assistant City Manager
I
ATTEST:
B
Ci Secretary
Ja ette Goodall
APPROVED AS TO FORM AND LEGALITY:
By:G
Jo . Strong
r. Assistant Ci Attorney
M & C: 22-0457
STATE OF TEXAS § mt�
COR®COUNTY OF TARRANT § ���,TX
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BEFORE ME, the undersigned authority, on this day personally appeared Fernando Costa,
Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation, knoRAicipal
me to
be the person and officer whose name is subscribed to the foregoing instrument, and acedged
to me that the same was the act of the said CITY OF FORT WORTH, TEXAS,
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 r
r the
purposes and consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this C� ay of
2022.
otary Public in and for
the State of Texas ,,,.�F •,F,, SELENA ALA
Notary Public, State of Texas
Comm. Expires 03-31-2024
Notary ID 132422528
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Hedy Pena, Director of
ARMOR TEXAS INSURANCE AGENCY, INC., known to me to be the person whose r arcie is
subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the
purposes and consideration therein expressed, in the capacity therein stated and as the act aid deed
of ARMOR TEXAS INSURANCE AGENCY, INC.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of
J�Z
Notary Public in and fo
The State of Texas
SARAH J ODLE
Notary ID#6215320
My Commission Expires
November 8,2023
Exhibit 1: Property Description OFFICIAL RECORD
CITY SECRETARY
Exhibit 2: Application: (NEZ) Incentives and Tax Abatement F.F WO TH,TX
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Exhibit 3: Project description
Exhibit 4: Final Construction Invoices (to be attached after construction)
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Exhibit 1
Property Description
2608 W. Dickson Street, Block 1,Lots 7, 8 and the East 50 feet of Lot 9, Carroll-Stone Addition, an
addition to the City of Fort Worth, Tarrant County, Texas, according to the Plat thereof recorc ed in
Volume 388-B, Page 194, Plat Records, Tarrant County.
Exhibit 2
TWO T
Application# NZ21-021 3
City of Fort Worth
Neighborhood Empowerment Zone (NEZ) Application for Incentives
Applicant Information
Property ARMOR TEXAS INSURANCE AGENCY, INC
Owner/Developer PENA HEDY M
Lust First 11l1.1.
Address: 2608 W DICKSON ST FORT WORTH TEXAS 76110
Street Address City State Zip
Phone: 817-703-7008 Email: HEDY@ARMORTEXASINS.COM
Contact:
(If different) Last First A/1.1.
Phone: Email:
Project Information
NEZ certifications are project and owner specific.Please describe your project:INSURANCE AGENCY OFFICE WITH_
EVENT VENUE AND INDUSTRIAL/OFFICE/RETAIL ON PREMISES
ce
2608 W.Dickson-Event Venue
Project Type 2528 W.Dickson-Office/Retail
❑ ❑ ❑ ❑ ❑
Single Family Multi-Family Commercial Industrial Community Facilities Mixed-Ilse
*Please be advised if the project address is zoned as a designated historical property(HC) antl your project consists of new
construction Or e-werior renovations,approval Of your project is required prior to NEZ application subntittaL approval froln
the Historic and Cultural Landmarks Commission(HCLC)must be attached to the NEZ application. FOP questions Old firrther
information coiieeu7rirrg histOr'ic pr'Ojects,please contact the HCLC at(817)392-8000*
Project Address: 2612, 2608 AND 2528 W DICKSON ST FORT WORTH,TEXAS 76110
Street Address
Legal Description: CARROLL-STONE ADDITION Block 1 Lot 7 7-8 E50'9 BLK 1
Lot Block Addition
YES NO YE NO
New Construction/Addition: ElV[f Remodel/Rehab- V ❑
Total New Sq.Ft. Total Development Cost: $574,377.50
For a single family project,will the NEZ certified property be occupied by YES NO
the property owner as a primary residence? ❑ ❑
If you selected No,please specify if this property will be sold to a homeowner as a primary residence or use as rental
property.
If your project is a Commercial or Mixed Use project,please list all specific uses that are being proposed:2 528 W.
Dickson St-Office/Retail, 2608 W. Dickson St-Event Venue, 2612 W. Dickson St-Insurance Office
Incentives
YES NO
Do you wish to apply for a Municipal Property Tax abatement for this project? V ❑
If the above answer is yes,please contact the City of Fort Worth Neighborhood Services Department at(817)392-7316 or
visit littii://fortwoi-tlitexas.,Pov/nei¢hborlioods/NEZ/for additional information.Tax Abatements are processed after NEZ project
certification and must go before the City Council for a vote. House Bill 3143 took effect on September 1,2019,which
requires at least 30 days advance notice be given of the tax abatement.Due to compliance with HB 3143,the minimum time
to process a tax abatement to he on the City Council agenda for vote is 12 to 14 weeks after the date of certification.
Applicants requesting tax abatement may not suhinit for a hui/ding Permit until the abatement has been approved b '4he Citv,
Council and the applicant has signer)a contract.
Revised ionsns so
FORT WORTH
Application# NZ21-0217
City of Fort Worth
Neighborhood Empowerment Zone (NEZ) Application for Incentives
YES NO
�Ll
Do you wish to apply for a release of NEZ Policy eligible City liens? ❑
Weed,Paving,Demolition and Board Up/Open Structure liens may be released for qualifying projects.
. Office
YES NO
Will a Zoning Change application be necessary for this project? ❑ .�
�1 ,1 e �, I�W�reh�us��o�i r�lG� rr1- She I
Current Zoning: Propose Use:
Signature of Zoning Staff: Date:
PLEASE INITIAL NEXT TO EACH STATEMENT
eI understand that my application will not be processed if it is incomplete.I agree to provide any additional i formation
r—determining eligibility as requested by the City.If the additional information is not submitted within 30 days,the pplication
will bedenied and application fees paid will not be reimbursed.
I hereby certify that the information provided is true and accurate to the best of my knowledge.
VkI hereby certify that all documents and information required by the Application Submittal Checklist is atta hed.
of ihereby acknowledge that I have read the NEZ Basic Incentives and Tax Abatement Policy,which governs the granting
x abatements, fee waivers and release of City liens, and that any VIOLATION of the terms of the NEZ Basic,Incentives
or MISREPRESENTATION shall constitute grounds for rejection of an application or termination of incentives at the
discretion of the City.
understand that the approval of fee waivers and other incentives shall not be deemed to be approval of any aspect of
tie roject. I understand that 1 am responsible for obtaining required permits and inspections from the City and in nsuring the
project is located in the correct zoning district.
I understand that if there are taxes due or liens against any property I own in the City of Fort Worth I nay not be
e 'gi for NEZ incentives.
I hereby certify that the project plans submitted with this application meet the NEZ design guideline reqL irements as
lis ed below or meet Strategic Plan guidelines for the Berryhill/Mason HeigLits, Oakland Corners and Stop 'x areas as
outlined on the NEZ webpgpe. I understand that if the project plans do not meet these design requirements,all permits will be
put on hold pending correction. If I choose to relinquish my NEZ certification instead of meeting the design requirements,
payment for all fees waived by the City up to that point will be due immediately and the building permit will not be iissued until
payment is made.
a.No metal buildings except for industrial projects.
b.All new construction projects must contain 70%masonry product
c.Exceptions to the masonry product will be made at the City's discretion for design district overlays(where applicable)
and approved planned development projects.
d.Compliance with NEZ design guidelines for Council adopted NEZ Strategic Plans (Berryhill/Mas n Heights,
Oakland Corners and Stop Six) is required for certification.
IV e.Attached garages for new single family homes may not extend more than 4 feet past the front building all.
runderstand that I must pay all associated fees at the time of project application and/or permit submittal if I wish to
sunlitpermits prior to determination of NEZ eligibility.This includes setting up an escrow account with the City. understand
that some permits may not be issued while NEZ eligibility is being established. Example:Applications that are re esting Tax
Abatement.
ARMOR TEXAS INSURANCE AGENCY, INC 12/29/2 21
Printed Name of Property Sign ture of Property Date
Owner/Developer Owner/Developer
Revised 1Q/16119 SO
Exhibit 3
Project Description
Interior and exterior remodel.
Interior:
-Install all new windows.
-Frame in and paint 2 dressing rooms, 2 bathrooms and kitchen.
-Install new plumbing, HVAC and electrical for entire building.
-Install fire sprinkler system
Exterior:
-Repair any exterior damage and paint entire building.
-Install new roof
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 06/14/22 M&C FILE NUMBER: M&C 22-0457
LOG NAME: 192608WDICKSON
SUBJECT
(CD 9)Authorize Execution of a Five-Year Tax Abatement Agreement with Armor Texas Insurance Agency,Inc.for the Rehabilitation of Three
Commercial Buildings for Use as Office Space, an Event Center and a Shopping Center,with a Total of Approximately 9,D27 SgWare Feet, Having
a Cost of at Least$489,275.D0 on Property Located at 2528,2608 and 2612 W. Dickson Street in the Las Familias de Rosemont Neighborhood
and Neighborhood Empowerment Zone and Reinvestment Zone Area Six
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the execution of a Five-Year Tax Abatement Agreement with Armor Texas Insurance Agency, Inc.for the rehabilit tion of three
commercial buildings for use as office space,an event center and a shopping center,with a total of approximately 9,027 square feet, having
a cost of at least$489,275.D0 on property located at 2528,2608 and 2612 W. Dickson Street in the Las Familias de Ros mont
Neighborhood and Neighborhood Empowerment Zone and Reinvestment Zone Area Six;and
2. Find that the terms of,and the property subject to,the Tax Abatement Agreement meet the criteria and guidelines set forth n Neighborhood
Empowerment Zone Tax Abatement Policy and Basic Incentives.
DISCUSSION:
Armor Texas Insurance Agency, Inc.(Property Owner)is the owner of the property described as Block 1,Lots 7,8 and the East 50 feet of Lot 9,
Carroll-Stone Addition,an addition to the City of Fort Worth,Tarrant County,Texas according to the plat recorded in Volume 388-B, Page 194,Plat
Records,Tarrant County,Texas at 2528,2608 and 2612 W.Dickson Street, Fort Worth,Texas.The property is located within the Las Familias de
Rosemont neighborhood and Neighborhood Empowerment Zone Area Six(NEZ).
The Property Owner plans to invest an estimated amount of$489,275.00 for the rehabilitation of three commercial buildings with approximately
9,027 square feet total for use as an office,event space and a shopping center(Project).The Neighborhood Services Department reviewed the
application and certified that the Property Owner and Project met the eligibility criteria to receive a NEZ Municipal Property Tax Abatement.The
NEZ Basic Incentives include a five-year Municipal Property Tax Abatement on the increased value of improvements to the qualified owner of any
new construction or rehabilitation within the NEZ.
Upon execution of the Agreement,the total assessed value of the improvements used for calculating municipal property tax will be frozen for a
period of five years starting January 2023 at the estimated pre-improvement value,as defined by the Tarrant Appraisal District(TAD)in 2022,as
follows:
Pre-Improvement TAD Value of
7
Improvements $183,596.00
Pre-Improvement Estimated Value of
Land $60,134.00
Total Pre-Improvement Estimated
Value E$243,730.00
The municipal property tax on the improved value of the Project after completion is estimated to be$3,583.94 per year for a total amount of
$17,919.70 over the five-year period. However,this estimate may differ from the actual tax abatement value,which will be calculated based on the
Tarrant Appraisal District appraised value of the property.
The Tax Abatement Agreement may be assigned to an affiliate of the property owner without the consent of the City Council. If the property is sold
to a new owner,other than an affiliate,the Agreement may be assigned only with City Council approval and provided that the new owner meets all
of the eligibility criteria as stated in the NEZ Tax Abatement Policy and Basic Incentives.
This property is located in COUNCIL DISTRICT 9.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon approval of the Tax Abatement Agreement,a loss of an estimated$17,919.70 in property tax revenue
may occur over the five-year period.This reduction in revenue will be incorporated into the long term financial forecast upon the Tax Abatement
being officially granted.
Submitted for City Manager's Office by: Fernando Costa 6122
Originating Business Unit Head: Victor Turner 8187
Additional Information Contact: Sarah Odle 7316
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