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HomeMy WebLinkAboutContract 44716 (2)�RACT "o��l�llp TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD EMPOWERMENT ZONE 612 Luxton Street This TAX ABATEMENT AGREEMENT ("Agreement") is entered into by and between the CITY OF FORT WORTH, TEXAS (the "City"), a home rule municipal corporation organized under the laws of the State of Texas and acting by and through T.M. Higgins, its duly authorized City Manager, and Michelle Garner, owner of property located at 612 Luxton Street, Block 1, South % of Lot 12 and all of Lot 13, Glenwood Addition, in the City of Fort Worth, Tarrant County, Texas, and as shown on the Plat recorded in Volume 63, Page 76, Tarrant County, Texas. The City Council of the City of Fort Worth ("City Council") hereby finds and the City and Owner hereby agree that the following statements are true and correct and constitute the basis upon which the City and Owner have entered into this Agreement: A. Chapter 378 of the Texas Local Government Code allows a municipality to create a Neighborhood Empowerment Zone (NEZ) if the municipality determines that the creation of the zone would promote: a. The creation of affordable housing, including manufactured housing in the zone; b. An increase in economic development in the zone; c. An increase in the quality of social services, education, or public safety provided to residents of the zone; or d. The rehabilitation of affordable housing in the zone B. Chapter 378 of the Texas Local Government Code provides that a municipality that creates a NEZ, may enter into agreements abating municipal property taxes on property in the zone. C. On July 31, 2001, the City Council adopted basic incentives for property owners who own property located in a Neighborhood Empowerment Zone, stating that the City elects to be eligible to participate in tax abatement and including guidelines and criteria governing tax abatement agreements entered into between the City and various third parties, titled "Neighborhood Empowerment Zone "NEZ Basic Incentives" ("NEZ Incentives"), these were readopted on May 21, 2013 (Resolution No. 4209). D. The NEZ Incentives contains appropriate guidelines and criteria governing tax abatement agreements to be entered into by the City as contemplated by Chapter 312 of the Texas Tax Code, as amended (the "Code"). E. On November 6, 2012, the Fort Worth City Council adopted Ordinance No. 20487 (the "Ordinance") establishing "Neighborhood Empowerment Reinvestment Zone No. "4" City of Fort Worth, Texas (the "Zone") and adopted Resolution No. 4143 establishing "Designation of the Evans and Rosedale Area as a Neighborhood Empowerment Zone" (the "NEZ"). OFFICIAL RECORD RECEIVED AUG 15 2013 CITY SECRETARY Page 1 of 12 FT. WORTH, TX Neighborhood Empowerment Zone Tax Abatement with Miche11e Garnertar 612 Luxtun Street F. Owner owns certain real property located entirely within the NEZ and that is more particularly described in Exhibit "1", attached hereto and hereby made a part of this Agreement for all purposes (the "Premises"). G. Owner or its assigns plans to rehabilitate the Required Improvements, as defined in Section 1.1 of this Agreement, on the Premises to be used as an apaitinent complex (the "Project"). H. On April 12, 2013, Owner submitted an application for NEZ incentives and tax abatement to the City concerning the contemplated use of the Premises (the "Application"), attached hereto as Exhibit "2" and hereby made a part of this Agreement for all purposes. I. The contemplated use of the Premises, the Required Improvements, as defined in Section 1.1, 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 Policy Statement, the Resolution and other applicable laws, ordinances, rules and regulations. J. The terms of this Agreement, and the Premises and Required Improvements, satisfy the 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: 1. OWNER'S COVENANTS. 1.1. Real Property Improvements. Owner shall construct, or cause to be constructed, on and within the Premises certain improvements consisting of the rehabilitation of (i) an existing 10 unit 5400 square foot multi- family apartment complex, (ii) having a minimum construction cost upon completion of $70,444.00 including site development costs (collectively, the "Required Improvements"). The detailed list of the Required Improvements is more particularly described in Exhibit "3". Tarrant Appraisal District must appraise the property (improvements and land) within 10% of $171,000.00. Owner shall provide a copy of the final construction invoices to City once the construction is complete; the construction invoices shall be a part of this Agreement and shall be labeled Exhibit "4". Minor variations, and more substantial variations if approved in writing by both of the parties to this Agreement, in the Required Improvements from the description provided in the Application for Tax Abatement shall not constitute an Event of Default, as defined in Section 4.1, provided that the conditions in the first sentence of this Section 1.1 are met and the Required Improvements are used for the purposes and in the manner described in Exhibit "4". Page 2 of 12 Neighborhood Empowerment Zone Tax Abatement with Michelle Garner for 612 Luxton Street 1.2. Completion Date of Required Improvements. Owner covenants to complete construction of all of the Required Improvements by May 21, 2015 (the "Completion Deadline"). The Required Improvements shall be deemed complete upon the issuance of a final certificate of occupancy for the Required Improvements by the Planning and Development Department. Provided however, if the Owner fails to complete construction of the Required Improvements by the Completion Deadline or fails to expend at least Seventy Thousand, Four Hundred Forty Four Dollars ($70,444.00) in 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. 1.3. Use of Premises. Owner covenants that the Required Improvements shall be rehabilitated and the Premises shall be continuously used as an Apartment Complex 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 set forth in this Agreement and in a manner that is consistent with the general purposes of encouraging development or redevelopment of the Zone. 1.4. Property Maintenance. Owner covenant to ensure high quality management and maintenance of the Premises for the duration of the abatement that the building is suitable for occupancy, taking into account local health, safety, and building codes and that Owner will comply with all building codes requirements imposed by the state or local government unit responsible for making building code inspections. If a violation report or notice is issued by the governmental unit, the Owner must provide to City either a statement summarizing the violation report or notice or a copy of the violation report or notice, and in addition, the Owner must state whether the violation has been corrected. Failure to maintain property as described above will constitute an Event of Default and Tax Abatement will be terminated. 2. ABATEMENT AMOUNTS, TERMS AND CONDITIONS. Subject to and in accordance with this Agreement, the City hereby grants to Owner real property tax abatement on the Premises, the Required Improvements, as specifically provided in this Section 2 ("Abatement"). "Abatement" of real property taxes only includes City of Fort Worth - imposed taxes and not taxes from other taxing entities. 2.1. Amount of Abatement. The actual amount of the Abatement granted under this Agreement shall be based upon the increase in value of the Premises, the Required Improvements, over their values on May 21, 2013, the year in which this Agreement was entered into, and certain guidelines set forth in this Section 2. Page 3 of 12 Neighborhood Empowerment Zone Tax Abatement with Michelle Garner for 612 Luxton Street 2.1.1. Abatement Based on Construction Expenses, 20% Affordable Housing Units. Owner shall receive a 100 percent (%) Abatement for 5 years on the increase in value of the Premises over their values on May 21, 2013, due to construction of the Required Improvements and shall not apply to taxes on the land, nor shall the abatement apply to mineral interests, if Owner meets all of the following requirements: 2.1.2.1 Spends at least $70,444.00 on construction costs of the Required Improvements (including, but not limited to, site development costs) and; Set aside one one -bedroom and one two -bedroom unit for families with income at or below 80% of Area Family Median Income (AMFI). The maximum income and rent allowable for the units is attached as Exhibit "5". In addition one of the units shall be compliant with the Americans with Disability Act (ADA) and fully accessible to persons with sensory impairment. The specification for ADA compliant and sensory impairment accessibility units is attached as Exhibit "6". In no event shall Owner unreasonably deny an income eligible tenant's application. In the event that the set aside units fall below the requirement, Owner shall bring the set aside back into compliance within the time specified in section 4. Determination of compliance with the two (2) units set aside for families with income at or below 80% of median income requirements of this Section 2.1.2 shall be based on Owner's occupancy data on August 1 of each year during the Compliance Auditing Term, as defined in Section 2.5. The maximum percentage of Abatement available to Owner under this Section 2.1. is 100 percent (100%). Owner shall not be eligible for any of the Abatement under this Section 2.1. unless Owner meets all the requirements set forth in all subsections in the paragraphs above. In addition, if the total construction costs of the Required Improvements are less than as provided in Section 1.1 of this Agreement, Owner will be ineligible to receive the Abatement under this Section 2.1.2.1, but an Event of Default, as defined and addressed in Section 4, shall also occur. 2.3. Abatement Limitation. Notwithstanding anything that may be interpreted to the contrary in this Agreement, Owner's Abatement in any given year shall be based on the increase in value of the Premises, over their values on May 21, 2013, including the Required Improvements, up to a maximum of $105,666.00. In other words, by way of example only, if the increase in value of the Premises, including the Required Improvements, in a given year is $300,000.00 Owner's Abatement for that tax year shall be capped and calculated as if the increase in value of the Premises for that year had only been $105,666.00. 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. Page4of12 Neighborhood Empowerment Zone Tax Abatement with Michelle Garner for 612 Luxton Street 2.5. Terms. January 1 of the year following the year in which a final certificate of occupancy is issued for the Required Improvements will constitute the start of auditing for compliance of this Agreement ("Compliance Auditing Term"). Taxes will not be abated during the first year of the Compliance Auditing Term. The term of the Abatement benefit (the "Term") shall begin on January 1 of the year following the year that the Compliance Auditing Term begins (the "Abatement Beginning Date"). Unless sooner terminated as herein provided, the Term and the Compliance Auditing Term shall end on the December 31 st immediately preceding their respective fifth (5th) anniversaries. Information for the last Compliance Auditing Term shall be submitted as indicated in Section 3.3. 2.6. Abatement Application Fee. The City acknowledges receipt from Owner of the required Abatement application fee of point five percent (.5%) of Project's estimated cost, not to exceed $2,000. 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 Tenn, at any time during normal office hours throughout the Term and the year following the Term and following reasonable notice to Owner, the City shall have and Owner shall provide access to the Premises in order for the City to inspect the Premises and evaluate the Required Improvements to ensure compliance with the terms and conditions of this Agreement. Owner shall cooperate fully with the City during any such inspection and/or evaluation. 3.2. Audits. The City shall have the right to audit the financial and business records of Owner that relate to the Project and Abatement terms and conditions (collectively, the "Records") at any time during the Compliance Auditing Term in order to determine compliance with this Agreement. Owner shall make all Records available to the City on the Premises or at another location in the City following reasonable advance notice by the City and shall otherwise cooperate fully with the City during any audit. 3.3. Provision of Information. On or before February 1 following the end every year during the Compliance Auditing Term, Owner shall provide information and documentation for the previous year that addresses Owner's compliance with each of the terms and conditions of this Agreement for that calendar year. This information shall include, but not be limited to, the following: 3.3.1. The number of units occupied by families with income at or below 80% of (AMFI) and the rents for those units. Page 5 of 12 Neighborhood Empowerment Zone Tax Abatement with Michelle Garner for 612 Luxton Street Owner shall supply any additional information requested by the City in its evaluation of Owner's compliance with each of the terms and conditions of this Agreement. Failure to provide all information required by this Section 3.3 shall constitute an Event of Default, as defined in Section 4.1. 3.4. Determination of Compliance. On or before August 1 of each year during the Compliance Auditing Term, the City shall make a decision and rule on the actual annual percentage of Abatement available to Owner for the following year of the Term and shall notify Owner of such decision and ruling. The actual percentage of the Abatement granted for a given year of the Term is therefore based upon Owner's compliance with the terms and conditions of this Agreement during the previous year of the Compliance Auditing Term. 4. EVENTS OF DEFAULT. 4.1. Defined. Owner shall be in default of this Agreement if (i) any of the covenants set forth in Section 1, 2 and 3 of this Agreement are not met; or (ii) ad valorem real property taxes with respect to the Premises or the Project, or its ad valorem taxes with respect to the tangible personal property located on the Premises, become delinquent and Owner does not timely and properly follow the legal procedures for protest and/or contest of any such ad valorem real property or tangible personal property taxes; or (iii) subject to Section 2.1 of this Agreement, Owner breaches any of the other terms or conditions of this Agreement (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 ninety (90) calendar days from the date of receipt of this written notice to fully cure or have cured the Event of Default. If Owner reasonably believes that Owner will require additional time to cure the Event of Default, Owner shall promptly notify the City in writing, in which case (i) after advising the City Council in an open meeting of Owner's efforts and intent to cure, Owner shall have one hundred eighty (180) calendar days from the original date of receipt of the written notice, or (ii) if Owner reasonably believes that Owner will require more than one hundred eighty (180) days to cure the Event of Default, after advising the City Council in an open meeting of Owner's efforts and intent to cure, such additional time, if any, as may be offered by the City Council in its sole discretion. 4.3. Termination for Event of Default and Payment of Liquidated Damages. If an Event of Default has not been cured within the time frame specifically allowed under Section 4.2, the City shall have the right to teiininate 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) Page 6of12 Neighborhood Empowerment Zone Tax Abatement with Michelle Garner for 612 Luxton Street require unplanned and expensive additional administrative oversight and involvement by the City; and (iii) otherwise harm the City, and Owner agrees that the amounts of actual damages therefrom are speculative in nature and will be difficult or impossible to ascertain. Therefore, upon termination of this Agreement for any Event of Default, Owner shall pay the City, as liquidated damages all taxes that were abated in accordance with this Agreement for each year when an Event of Default existed and which otherwise would have been paid to the City in the absence of this Agreement. The City and Owner agree that this amount is a reasonable approximation of actual damages that the City will incur as a result of an uncured Event of Default and that this Section 4.3 is intended to provide the City with compensation for actual damages and is not a penalty. This amount may be recovered by the City through adjustments made to Owner's ad valorem property tax appraisal by the appraisal district that has jurisdiction over the Premises. Otherwise, this amount shall be due, owing and paid to the City within sixty (60) days following the effective date of termination of this Agreement. In the event that all or any portion of this amount is not paid to the City within sixty (60) days following the effective date of termination of this Agreement, Owner shall also be liable for all penalties and interest on any outstanding amount at the statutory rate for delinquent taxes, as determined by the Code at the time of the payment of such penalties and interest (currently, Section 33.01 of the Code). 4.4. Termination at Will. If the City and Owner mutually determine that the development or use of the Premises or the anticipated Required Improvements are no longer appropriate or feasible, or that a higher or better use is preferable, the City and Owner may terminate this Agreement in a written format that is signed by both parties. In this event, (i) if the Term has commenced, the Term shall expire as of the effective date of the teiiiiination of this Agreement; (ii) there shall be no recapture of any taxes previously abated; and (iii) neither party shall have any further rights or obligations hereunder. 4.5 Sexually Oriented Business & Liquor Stores or Package Stores. a. Owner understands and agrees the City has the right to terminate this agreement, without cause, 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, without cause, as determined in City's sole discretion if the Project contains or will contain a liquor store or package store. 5. EFFECT OF SALE OF PREMISES. Company may assign this Agreement and all or any portion of the benefits provided hereunder to an Affiliate without the consent of the City, provided that (i) prior to or contemporaneously with the effectiveness of such assignment, Company provides the City with written notice of such assignment, which notice shall include the name of the Affiliate and a contact name, address and telephone number, and (ii) the Affiliate agrees in writing to assume all terms and conditions of Company under this Agreement. For purposes of this Agreement, an "Affiliate" means all entities, incorporated or otherwise, under common control with Company, controlled by Company or controlling Company. For purposes of this definition, "control" means fifty percent (50%) or more of the ownership determined by either value or vote. Company may not otherwise assign this Agreement or any of the benefits provided hereunder to another party without the consent of the City Council, which consent shall not Page 7ofl2 Neighborhood Empowerment Zone Tax Abatement with Michelle Garner for 612 Luxton Street unreasonably be withheld or delayed, provided that (i) the City Council finds that the proposed assignee is financially capable of meeting the terms and conditions of this Agreement and (ii) the proposed assignee agrees in writing to assume all terms and conditions of Company under this Agreement. Any attempted assignment without the City Council's prior written consent shall constitute grounds for termination of this Agreement and the Abatement granted hereunder following ten (10) calendar days of receipt of written notice from the City to Owner. In no event shall the abatement term be extended in the event of a subsequent sale or assignment. 6. NOTICES. All written notices called for or required by this Agreement shall be addressed to the following, or such other party or address as either party designates in writing, by certified mail, postage prepaid, or by hand delivery: City: Owner: And City of Fort Worth Michelle Garner City of Fort Worth Attn: City Manager 4528 Tacoma Terrace Housing & Economic Dev. 1000 Throckmorton Fort Worth, Texas 76123 Attn: Jay Chapa Fort Worth, Texas 76102 1000 Throckmorton Street Fort Worth, Texas 76102 7. MISCELLANEOUS. 7.1. Bonds. The Required Improvements will not be financed by tax increment bonds. This Agreement is subject to 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 Plan or Zoning Commission or any member of the governing body of any taxing units in the Zone. 7.3. Conflicts Between Documents. In the event of any conflict between the City's zoning ordinances, or other City ordinances or regulations, and this Agreement, such ordinances or regulations shall control. In the event of any conflict between the body of this Agreement and Exhibit "D", the body of this Agreement shall control. 7.4. Future Application. A portion or all of the Premises and/or Required Improvements may be eligible for complete or partial exemption from ad valorem taxes as a result of existing law or future Page 8of12 Neighborhood Empoweiwiient Zone Tax Abatement with Michelle Garner for 612 Luxton Street 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. C-26270 on May 21, 2013, which, among other things, authorized the City Manager to execute this Agreement on behalf of the City. 7.6. Estoppel Certificate. Any party hereto may request an estoppel certificate from another party hereto so long as the certificate is requested in connection with a bona fide business purpose. The certificate, which if requested will be addressed to the Owner, shall include, but not necessarily be limited to, statements that this Agreement is in full force and effect without default (or if an Event of Default exists, the nature of the Event of Default and curative action taken and/or necessary to effect a cure), the remaining term of this Agreement, the levels and remaining term of the Abatement in effect, and such other matters reasonably requested by the party or parties to receive the certificates. 7.7. Owner Standing. Owner shall be deemed a proper and necessary party in any litigation questioning or challenging the validity of this Agreement or any of the underlying laws, ordinances, resolutions or City Council actions authorizing this Agreement and Owner shall be entitled to intervene in any such litigation. 7.8. Venue and Jurisdiction. This Agreement shall be construed in accordance with the laws of the State of Texas and applicable ordinances, rules, regulations or policies of the City. Venue for any action under this Agreement shall lie in the State District Court of Tarrant County, Texas. This Agreement is performable in Tarrant County, Texas. 7.9 Severability. If any provision of this Agreement is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired. 7.10 Headings Not Controlling. Headings and titles used in this Agreement are for reference purposes only and shall not be deemed a part of this Agreement. Page 9of12 Neighborhood Empowerment Zone Tax Abatement with Michelle Garner for 612 Luxton Street 7.11. Entirety of Agreement. This Agreement, including any exhibits attached hereto and any documents incorporated herein by reference, contains the entire understanding and agreement between the City and Owner, their assigns and successors in interest, as to the matters contained herein. Any prior or contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict with any provision of this Agreement. This Agreement shall not be amended unless executed in writing by both parties and approved by the City Council. This Agreement may be executed in multiple counterparts, each of which shall be considered an original, but all of which shall constitute one instrument. CITY OF FORT WORTH: Byt7ilevta Fernando Costa Assistant City Manager ATTES By: ary Kay City Secretary APPROVED AS TO FORM AND LEGALITY: By: `'I I ItQ,l A19„YYIJf) Melinda Ramos Assistant City Attorney M & C: C-26270 By: 42 /_-(— �." ichelle Garner Page 10 of 12 Neighborhood Empowerment Zone Tax Abatement with Michelle Garner for 612 Luxton Street STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Fernando Costa, Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation, known to me to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the said CITY OF FORT WORTH, TEXAS, a municipal corporation, that he was duly authorized to perform the same by appropriate resolution of the City Council of the City of Fort Worth and that he executed the same as the act of the said City for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this , 2013. • /Prue,.- 476 » Newry Public in and for the S to of Texas T ✓DAi%A- �1�AV/."ZS" Notary's Printed Name STATE OF TEXAS COUNTY OF Tc rzA =o.- EVONIA DANIELS __.: Notary Public, State of Texas z°?l +;c My Commission Expires ,;o s July 10, 2017 Jv t day of BEFORE ME, the undersigned authority, on this day personally appeared Michelle Garner, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that she executed the same for the purposes and consideration therein expressed, in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this yLQ, , 2013. 1 Notary Public in and for The State of Texas Lim( ,I - Notary's Printed Name vu Ct ffRJxYJYYJxJJYyJffJJi! J,V JJ'a ; . o ff Ytsi , LISA GARCIA is AIL-Y-0 NOTARY PUBLIC STATE OF TEXAS COMMISSION EXPIRES: \-`� 'w Ortttr 09 -26-2016 .j t% day of Page 11 of 12 Neighborhood Empowerment Zone Tax Abatement with Michelle Garner for 612 Luxton Street Exhibit 1: Property Description Exhibit 2: Application: (NEZ) Incentives and Tax Abatement Exhibit 3: Detailed Project Description Exhibit 4: Final Construction Invoices Exhibit 5: Income and Maximum Rent Table Exhibit 6: ADA Compliant Accessibility Improvements Page 12 of 12 Neighborhood Empowerment Zone Tax Abatement with Michelle Garner for 612 Luxton Street Exhibit 1 Property Description 612 Luxton Street, Block 1, South % of Lot 12 and all of Lot 13, Glenwood Addition, in the City of Fort Worth, Tarrant County, Texas, and as shown on the Plat recorded in Volume 63, Page 76, Tarrant County, Texas. Exhibit 2 FORT WORTH Application No. CITY OF FORT WORTH NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) PROGRAM PROJECT CERTIFICATION APPLICATION APPLICATION CHECK LIST - Please submit the following documentation: (❑ A completed application form A list of all properties owned by the applicant, owner, developer, associates, principals, partners, and agents in the City Fort Worth Non Refundable Application fee — For all Basic Incentives applications excluding Tax Abatement the application fee 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 not 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.) Title abstract of the property (only if applying for release of City liens) K%A A reduced l lx 17 floor plan, site plan, and site elevation with a written detailed project description that includes a construction time line A detailed line item budget showing the cost breakdown for the project ❑ Copy of Incorporation Papers noting all principals, partners, and agents if applicable LJ Required - Meet with the Councilmember and Neighborhood & other Organizations representing the NEZ as outlined in the Public Notice requirement of the NEZ Policy and Guidelines revised April 6, 2004 or followed guidelines of NEZ Strategic Plan if a Strategic Plan is in place for the specific NEZ, ❑ Support letter from Woodhaven Neighborhood Association and Woodhaven Community Development Corporation (For projects located in Woodhaven NEZ only) Wit INCOMPLETE APPLICATIONS WILL NOT BE PROCESSED FOR CERTIFICATION UNTIL ALL REQUIRED DOCUMENTS SHOWN IN THE ABOVE CHECKLIST ARE SUBMITTED WITHIN 30 DAYS AFTER THE APPLICATION IS 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 NEZ CERTIFICATION DEPENDING ON THE COMPLEXITY OF YOUR PROJECT. ALL BUILDING PERMITS MUST BE PULLED WITHIN THE 12 MONTH PERIOD THAT CERTIFICATION WAS APPROVED, OR WITHIN THE 12 MONTH PERIOD THAT THE TAX ABATEMENT WAS APPROVED, OR YOU WILL BE REQUIRED TO RE -APPLY FOR NEZ INCENTIVES. II. APPLICANT / AGENT INFORMATION Ni,t ck t C -i-145- - 1. Applicant: `.' ✓s_, c_stA1' - ' 2. Contact Person: C``•At: - kR- (SAE:')--.L 3. Address: : - 01.2. K" ay4, - ;-1, -„Y . li <... L 7:7. leirf 14+ Street City State Zip 4. Phone no.: - . 6. Email: LIMLi -.L)M. i k C1,fA /t-t t_ . C t`;It 7. Agent (if any) I), t,, &I _/ _ t'-1A.1"2��,1<-V - S. Address: 4F7Zej ^t T ,. F� 12-.. Street City State Zip 9. Phone no.. -i, z.-.4)_.I-74 ; : 10. Fax No.. ,. L 1 '--,';' 7 _ (` [ L-) 11. Email: -6v12, Lv ` t.i 1,'r - I4r1t; l * 1,4 114, 1-r.,J3 Revised July 22, 2010 1 FORT WORTH Application No. PROJECT ELIGIBILITY 1. Please list down the addresses and legal descriptions of the project and other properties your organization owns in Fort Worth. Attach metes and bounds description if no address or legal description is available. Attach a map showing the location of the project. Table 1 Property Ownership Address Zip Code T,eual Thgcrintion (Project Location) Subdivision Name Lot No. I Block No. '' Other properties owned in the City of Fort Worth - continue on a separate sheet and attach if necessary. 2. For each property listed in Table 1, please check the boxes below to indicate if: • there are taxes past due; or • there are City liens; or • You (meaning the applicant, developer, associates, agents, principals) have been subject to a Building Standards Commission's Order of Demolition where the property was demolished within the last five years. Table 2 Property Taxes and City Liens Address /�1.; Li..) T j Property Taxes Weed Due Liens City Liens on Property Board-up/Open Demolition Stucture Liens Liens ❑ ❑ ❑ i ❑ ❑ ❑ n ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑- - ❑ ❑ ❑ ❑ oLi - Li (Please attach additional sheets of paper as needed.) 1 ❑ Li Paving Liens _❑' ❑ ❑ ❑ ❑ ❑ ❑ ❑ LI Li Order of Demolition If there are taxes due or liens against any property in the City of Fort Worth you may not be eligible for NEZ incentives Revised July 22, 2010 2 FORT WORTH 3. Do you own other properties under other names? ❑ Yes, -No If Yes, please specify 4. Does the proposed project conform with City of Fort Worth Zoning? If no, what steps are being taken to insure compliance? 5. Project ❑ L�1 ❑ ❑ Type: Single Family Multi- Family Commercial Industrial Community Facilities ❑y Owner Occupied V'vl Rental Property 6. Please describe the proposed residential or commercial project: V),��-�;�- Application No. Yes ❑ No Mixed -Use 7. If your project is a commercial, industrial, or mixed-useproject, please describe the types of businesses that are being proposed: // 8. Is this a new construction or rehab project? ❑ New Construction 'Rehab 9. How much is the total development cost of your project? 0 ' 16i, L�L'.3 10. Will the eligible rehabilitation work* equal to at least 30% of the Tarrant Appraisal District (TAD) assessed value of the structure during the year rehabilitation occurs? ErYes ❑ No *Eligible rehabilitation includes only physical improvements to real property. It does NOT include: Front yard fencing consisting of chain -link or solid material construction; personal property such as furniture, appliances, equipment, and/or supplies. Total eligible rehabilitation costs shall equal to or exceed 30% of the TAD appraised value of the structure during the year rehabilitation occurs. 11. How much is the total square footage of your project? square feet * If applying for a tax abatement please answer questions 12 —16. If not skip to part III Incentives 12. For a single-family homeownership, mixed -use, or multi-familv development project, please fill 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 qualified for tax abatement, at least 20% of total units shall be affordable to families at or below 80% of AMFI. Check the box if you are requesting a waiver of this requirement. n 14. For a commercial. industrial or community facilities project, indicate square footage of non- residential space. ICommercial Industrial I Community Facilities square feet Revised July 22, 2010 3 square feet .� 7t 1S square feet FORT WORTH 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 Total Itemized Budget of the Project Items 4 Amount Application No. Notes ***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 improvements, or personal property (such as machinery, equipment, and/or supplies or inventory). 16. For a commercial, industrial, community facility or mixed -use project, how many employees will the project generate? 'l-1I4, 17. For a mixed -use project, please indicate the percentage of all uses in the project in the following table. Table 5 Percentage of Uses in a Mixed -Use Project Type Square Footage Percentage�� ---- Residential Office Eating Entertainment Retail sales Service r Total III. INCENTIVES - What incentives are you applying for? Municipal Property Tax Abatements Must provide Final Plat Cabinet and Slide for Tax Abatement Cabinet Slide 5 years j ll f{Residential owner occupied ❑Residential Rental Property aApartments (5 plus units) ❑ Commercial Development Fee Waivers 32 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 (CFA) application fee ❑ Street and utility easement vacation application fee Impact Fee Waivers - The maximum water/wastewater impact fee waiver amount for a commercial, industrial, mixed - use, or community facility development project is equivalent to the water/wastewater impact fee of two 6-inch meters n Water (Meter Size Release of City Liens Weed liens ❑ Paving liens ,Board up/open structure liens Revised July 22, 2010 4 (No. of meters ) 11 Transportation Wi I4»it i I FORT TWORTH Application No. 1 iq.) O 2 IIh ACKNOWLEDGMENTS 1 hereby certify that the information provided is true and accurate to the best of my knowledge. I hereby acknowledge that I have received a copy of NEZ Basic Incentives, which governs the granting of tax abatements, fee waivers and release of City liens, and that any VIOLATION of the terms of the NEZ. Basic Incentives or MISREPRESENTATION shall constitute grounds for rejection of an application or termination of incentives at the discretion of the City. 1 understand that the approval of fee waivers and other incentives shall not be deemed to be approval of any aspect of the project. 1 understand that I am responsible in obtaining required permits and inspections from the City and in ensuring the project is located in the correct zoning district. I understand that my application wilt not be processed if it is incomplete. I agree to provide any additional information for determining eligibility as requested by the City. (PRINTED OR 'TYPED NAME) (AU HORIZED SIGNATURE) (DATE) Please mail or fax your application to: City of Fort Worth Planning and Development Department 1000 Throcicmorton Street, Fort Worth, Texas 76102 Tel: (817) 392-2222 Fax: (817) 392-8116 Electronic version of this form is available on our wehsite. For more information on the NEZ Program, please visit our web site at www,fortworthgov.org/planninganddevelopment Application No. I _3- QL which NEZ? Application Completed Date (Received Date): Commercial ❑ Before NEZ Type? ❑ SF [Multifamily Construction completion date? TAD Account No, Meet afi'ordability test? Rehab at or higher than 30%? 'Fax current on this property? City liens on this property'? • Weed liens ❑ Yes • Board-up/open structure liens ❑ Yes • Demolition liens ❑ Yes • Paving liens ❑ Yes • Order of demolition L] Yes Certified'? Yes ❑ No Certified by For Office 1 s Only1/', Q C SQC c District Conform with Zoning? Industrial L] Community facilities After NEZ Ownership/Site Control If not certified, reason Yes 'Yes ErYes CaLet 0 No ❑ No ❑ No [KNo 0 Referred to: ❑:Economic Development ❑I lousing Revised July 22, 2010 Consistent with the NEZ plan? Minimum Capital investment'? Meet mixed -use definition? Tax current on other properties? City liens on other properties? • Weed liens • Hoard-up/open structure liens • Demolition liens • Paving liens • Order of demolition Date certification issued? 6 ❑ Yes ❑No Mixed -Use Yes ❑ No 2 Yes [✓ Yes Ycs R Yes ❑ Yes ❑ Yes ❑ Yes ❑ Yes ❑ Nes ❑ No No ❑ No ❑ No Development ❑Water ❑Code []'TPW S j No El No 2-No (2No Exhibit 3 Project Description Rehabilitation of a 5400 square foot, 10 unit apartment building. Consisting of updating the following in each unit: • Updating/repairing plumbing • Updating/repairing electrical • Replacing Flooring • Kitchen Remodeling • Bathroom Remodeling • Painting Interior and Exterior • Updating/repairing HVAC Exhibit 4 Final Construction Invoices Will be provided to City after construction is complete and final Certificate of Occupancy is issued. Annual Income Limit Maximum Monthly Rent Income Limit Category 80% Exhibit 5 Maximum Income and Rent Table 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person $36,900 $42,150 $47,400 $52,650 $56,900 $61,100 $65,300 $69,500 $922.50 $1,053.75 $1,185.00 $1,316.25 $1,422.50 $1,527.50 $1,632.50 $1,737.50 Exhibit 6 ADA Compliant Accessibility Improvements • All door openings must be at least 36 inches wide • Door hardware must be ADA compliant and have a shape that is easy to grasp only using one hand and must be able to be operated without any tight grasping, pinching or wrist twisting. The hardware must be installed no higher than 48 inches from the floor. • Entry door threshold can be no higher than 1/2 inch high for ease of access with a wheelchair. • Flooring in apartment rooms must be one level. No sunken or elevated rooms. • Building access must have an accessible route that allows for unloading of disabled individuals from a car or parking spot. The route must be at least 36 inches wide and have a slope no greater than 1:20. M&C, Review COUNCIL ACTION: Approved on; 5/21/20133> Official site of the City of Fort Worth, Texas DATE: 5/21/2013 REFERENCE NO.: C-26270 LOG NAME: 17NEZ612LUXTON CODE: C TYPE: NON -CONSENT PUBLIC HEARING: NO SUBJECT: Authorize Execution of a Five -Year Tax Abatement Agreement with Michell Garner, for the Rehabilitation of a Two -Story, Ten Unit Apartment Building on Property Located at 612 Luxton Street in the Evans and Rosedale Neighborhood Empowerment Zone (COUNCIL DISTRICT 8) RECOMMENDATION: It is recommended that the City Council authorize execution of a five-year Tax Abatement Agreement with Michell Garner, for the rehabilitation of a two-story, ten unit apartment building on property located at 612 Luxton Street in the Evans and Rosedale Neighborhood Empowerment Zone, in accordance with the Neighborhood Empowerment Zone Tax Abatement Policy and Basic Incentives. DISCUSSION: Michell Garner (Property Owner), is the owner of the property described as the South 1/2 of Lot 12 and all of Lot 13, Block 1, Glenwood Addition, an Addition to the City of Fort Worth, Tarrant County, Texas, according to the Plat recorded in Volume 63, Page 76, Plat Records, Tarrant County, Texas, 612 Luxton Street, Fort Worth, Texas, 76104. The property is located within the Evans and Rosedale Neighborhood Empowerment Zone (NEZ). The Property Owner plans to invest an estimated amount of $70,444.00 to rehabilitate a two-story, 10 unit apartment building (Project). The Housing and Economic Development Department reviewed the application and certified that the Project met the eligibility criteria to receive a Municipal Property Tax Abatement. The NEZ Tax Abatement Policy and 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. In accordance with the NEZ Tax Abatement Policy and Basic Incentives, 20 percent of the units 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 80 percent of area median income based on family size. In addition at least five percent 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 two percent of the total units constructed must be fully accessible to persons with sensory impairments. 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 2014 at the estimated pre -improvement value as defined by the Tarrant Appraisal District (TAD) on May 21, 2013 for the property as follows: Pre -Improvement TAD Value of Improvements Pre -Improvement Estimated Value of Land $ 102,704.00 $4.125.00 http://apps.cfwnet.org/council packet/mc_review.asp'?1D=I8468&councildate=5/21/2013[05/22/2013 12:58:42 PM] M&C Review Total Pre -Improvement Estimated Value $106,829.00 The municipal property tax on the improved value of Project after construction is estimated in the amount of $602.30 per year for a total in the amount of $3,011.48 over the five-year period. However, this estimate may differ from the actual tax abatement value, which will be calculated based on the TAD appraised value of the property. In the event of a sale of this property, the Tax Abatement Agreement may be assigned to an affiliate without the consent of the City Council or to a new owner with City Council approval, only if the new owner meets all of the eligibility criteria as stated in the NEZ Tax Abatement Policy and Basic Incentives. This property is located in COUNCIL DISTRICT 8. FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that this action will not increase the total appropriations on City funds. TO Fund/Account/Centers FROM Fund/Account/Centers Submitted for City Manaaer's Office bv: Fernando Costa (6122) Oriainatina Department Head; Cynthia B. Garcia (8187) Additional Information Contact Sarah Odle (7316) ATTACHMENTS 612 Luxton Currentodf 612 Luxton NEZ MaD.odf http://apps.cfwnet.org/council packet/mc_review.asp?ID=18468&councildate=5/21/2013[05/22/2013 12:58:42 PM]