HomeMy WebLinkAboutContract 44518 c sEcRETARY
CONTRACT NOv:22
TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD
EMPOWERMENT
2817 West 51h Street
s'T ABATEMENT AGREEMENT "Agreement"") is entered into by and between
the CITY OF FO RT WORTH, TEXAS the "Clky"), a
home rule municipal corporation cry zed
under the laws of the State of Texas and acting by and through .M. Higgins, its duly authorized City
Manager, and 51h Street Studies LL C, owner of property located at 2817 West 5th Street Block 1
Lots 5 d 6, V ,giants 2,,i Addition, in the City of Fort Worth, Tarrant County, Texas, and as
shorn on the Plat recorded. in Volume 106, Page 118,Tarrant County,Texas.
The City Council of the City of Fort Worth ("City Council"' hereby firs 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 Agreements.,
A. Chapter 378 of the Texas Local Govenuuent Code allows a municipality to create a
neighborhood orhood ogre ent zone if the municipality determines that the creation of the zone would
(1) the creation of affordable housing, including manufactured housing in the zone;
(2) an increase in economic development in the zone-
(3) increase in the duality of'social services, education, or public safety provided to
residents of the zone; or
(4) the rehabilitation of affordable housing in the zone.
B. Chapter 378 of the Texas :decal Government Code provides that a municipality that
creates a neighborhood empowerment zone may enter into agreements abating municipal property
tapes on property in the zone.
C. On July 31, 2001, the City Council adapted basic incentives for property owners who
own property located in a Neighborhood Empowerment one, stating that the City elects to he
eligible to participate in tax abaten a t and including guidelines and criteria governing tax abatement
agreements ents entered into between the City and various third parties, titled "Neighborhood
Empowerment Zone N Z Basic Incentives" ("NEZ Incenti ryes" , these were readopted. on
February 5, 2013 (Resolution o. 4180 . The February 5, 2013 NEZ, Incentives are attached hereto as
E "1"'bit hereby made a part of the Agreement for all pu pwoses.
D. The NEZ Incentives contains appropriate guidelines and criteria governing tax
(:- abatement agreements to be entered into by the City as contemplated by Chapter 3:12 of the Texas,Tax
n
` , as amended (the"Code").
On December 7, 20 10. the Fort Worth City Council adopted Ordinance No. 1 9466 (the
"Ord aces establishing "Neighborhood Empowerment Reinves ent Zone No.I 5R" City of Fort
Worth, Tex (the"Zone") and adopted Resolution No. 3950 establishing"Designation of the Trinity
Park Area as a Neighborhood E po e e t Zone" (the"NEZ" .
IOFFICIAL,RECORD
Page I of 12 CITY SECRETARY
Neighborhood .Empowerment Zone Tax Abatement ith 15 th§Tf(ATff("6T&d11
Owner owns certain real property located entirely within the Zone and that is more
particularly described in Exhibit 44299
purposes (the"Prerm'ses"). attached hereto and hereby made a part of this, Agreement for all
G. Owner or its assigns plan to redevelop/remodel an existing building, Required
Improvements, as defined in Section 1.1 of this Agreement, on the Premises (the"Project").
H. On March 29, 2013 Owner submitted an application for tax abatement to the City
concerning the Premises (the "Application"), attached hereto as, Exhibit "Y' and hereby made a part
of this Agreement for all purposes.
L 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 N Incentives,
the Ordinance 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 famished in the manner prescribed by the Code to the presiding of 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-,
11 OWNER'S COVENANTS,
1.1. Real Properly Improvements.
Owner shall construct, or cause to be constructed, on and within the Premises certain
improvements consisting,of an interior and exterior remodel of(1) an existing 5200 square foot
building- and (ii) having a construction cost upon completion of $337,896.00 including site
development costs but such minimum construction costs shall be reduced by any,construction
cost saving (collectively, the "Required Improvements"). The type, number and location of
the Required Improvements are described in Exhibit 'W'. Tarrant Appraisal District must
appraise the property (improvements and land) within 10% of $337,896.00. Owner shall
We a copy of the final construction invoices to City once construction i
pro vi s complete- the
construction invoices all be a part of this Agreement and shall be labeled Exhibit "5". Minor
variations, and more substantial variations if approved in writing by both of the parties to this
Agreement, in the Required Improvements fr'om 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'W'.
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1.2. Completion Date of Re aired Improvements.
:fie
over to complete construction of all of the Required Improvements by
May 7, 2015 (the "Completion ueac I inne"). 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 falls to
complete construction of the Required Improvements by the Completion Deadline or fails to
expend at least Three Hundred Thirty Seven Thousand, Eight Hundred Ninety Six Dollars
($337, 6.00) 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/r,emodeled
and the Premises shall be continuously used as a Workshop for Artisans and Light
Fabrication and in accordance with the description of the Project set forth in the Exhibit "4",
In addition, Owner covenants that throughout the Tenn, 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.
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 ire n value of the Premises and the Required Improvements, over their
values on April 22, 2013, and this amount is $10,124.00, the year in which this Agreement
was entered into.-
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 Required
Improvements are less than as provided in Section U of thi's* Agreement, except that
0
such mmimum construction costs shall be reduced by construction cost savings,,, Owner,
shafl not be eligible to receive any Abatement under this Agreement.1
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Neighborhood Empowerment Zone Tax Abatement with 51h Street Studios LLC
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 Litm-tationo
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~t' Premises,
over its value on April 22, 2013, including the Required Improvements, up to a maximum of
$506,844.00. In other words, by way of example,only, if the increase in value of'the Premises
over its value on April 22, 2013, including the Required Improvements, in a given year is
$5,07,010,01.00, Owner's Abatement for that tax year shall be capped and calculated as if the
appraised value of the Premises for that year had only been$5106,,8i44.00.
2.4. P,roltests, 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 51. Term.
The term of the Abatement (the "Term") shall begin on January I of the year
following the calendar year in which a final certificate of occupancy is issued for the
Required Improvements (",Beginning Date") and, unless sooner terminated as herein
provided, shall end on, De!cem I
provi ber 31 immediately preceding, the fifth (5"')
anniversary of the Beginning Date.
2.6. Abatement A]2plicaflon Fee.
The City acknowledges receipt from Owner of the required, Abatement application fee
of one half ofone percent (.5%) of Prqject'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, AUDIT'S AND EVALUATION OF PROJECT.
3.1. Inspection of Preim*'ses.
Between the execution date of this Agreement and the last day of the Term and for five
(5) years after termination ("Comptiance AudftM* g Term"'), at any time during,normal of
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
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Neighborhood Empowerment Zone Tax Abatement with 5'h Street Studios 1 LC
City to inspect the Premises and evaluate the Required Improvements to ensure compliance
with the to and conditions of this Agreement. Owner shall cooperate fully with the City
during any such inspection and/or evaluation.
The City shall have the right to audit at the City's expense 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 and to calculate the correct percentage of
Abatement available to Owner. Owner shall make all. applicable Records available to the
City on the Premises or at another location in the City following reasonable advance notice
by the City and shall otherwise cooperate fully with the City during any audit,
3.3. Provision of Information,
On or before March I following the end of every year during the Compliance
Auditing T erm and if requested by the City, Owner shall provide information and
documentation for the previous year that addresses Owner's, compliance with each of the
terms and conditions of this Agreement for that calendar year. "his information shall
include, but not be limited to, the number and dollar amounts of all construction contracts
and subcontracts awarded on the Project.
Failure to provide all information within the control of Owner required by,this Section 3.3
shall constitute an Event oj'Def and t, as defined in Section 4.L
so
3.4. Deternu*nation ofComptiance.
On or before August I of each year during the Compliance Auditing Term, the City
shall make a decision and rule on the actual annual percentage of Abatement available to
Owner for the following year of the Term and shall notify Owner of such decision and
ruling. The actual percentage of the Abatement granted for a given year of the Term is
therefore based upon Owner's compliance with the, terms and conditions of this Agreement
during the previous year of the Compliance Auditing Term.
4, EVENTS OF DEFAULT.
4.1. Defined.
Unless otherwise specified herein, Owner shall be in default of this Agreement if(1)
Owner falls to construct the Required 1mprovements as defined in Section 1.1.- (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,(ill) OWNER DOES
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NOT COMPLY WITH CHAPTER7 AND APPENDIX B OF THE CODE OF
ORDINANCE OF THE CITY OF FORT WORTH (collectively, each an "Event of
Default""),
4.2. Notice to, Cure.
Subject to Section 5, if the City detennInes that an Event of Default has occurred, the
City shall provide a written notice to Owner that describes the nature of the Event of Default.
Olwner shall have ninety (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
writing, in which case (0 afler advising the City Council in an open meeting of Owner's
efforts and intent to cure, Owner shall have one hundred eighty (1 80) calendar days from the
original date of receipt of the written notice, or (ii), if Owner reasonably believes that Owner
will require more thai-i 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. Ter nu*nation for Event of Default and ent of L 0 #M dated Dam
- 19
If an Event of Default, which is defined in Section 4.1, has not been cured within the
time frame specifically allowed under Section 4.2, the City shall have the right to terminate
this Agreement immediately., Owner acknowledges and agrees that an uncured Event of
Default will (i) harm the City's economic development and redevelopment efforts on the
Premises and in the vicinity of the Prei-nise&- (1i) 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 there from 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 not be eligible for the Abatement for the remaining Term and
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. Thi's amount may be recovered by the
City through adjustments made to Owner's, ad valorem property tax appraisal by t he 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 often-nination 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
int est.,
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4.4. Terrm*nation 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 appro,pnate 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, (0 if the Tenn has commenced,
the Tenn shall expire as of the effective date f'the termination of this Agreement; (ii) there
shall be no recapture of any taxes previously abated; and (iii) neither party shall have any
further rights or obligations hereunder.
4.5. S,exuan iented Business & Li nor Stores or Packs Stores.
.Y or�l
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.
5, EFFECT OF SALE O�F P,REMISES.,
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 (11) 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 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 ('11) 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'thlis 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.
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Neighborhood Empowerment Zone Tax Abate mentwith 5"' Street Studios LLC
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 w-ritin g, by certified mail,
postage prepaid,or by hand delivery-,
City# Owner,
City of Fort Worth 5t" Street Studios LLC
Attn-. City Manager Attn.- Virginia Ann Lawrence
10010 Throckmorton P01 Box 6745
Fort Worth, TX 76102 Tyler, Texas 75711
and
Housing and Economic Development Department
Attn: Jay Chap.
1000 Throckmorton
Fort Worth, TX 76102
7. MISCELLANEOUS.
7A, 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
Planning or Zoning Commission or any member of the governing body of any taxing units
in the Zone.
73, 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 'W'. the body of
this Agreement, shall control. As of May 7, 2013, the City is unaware of any conflicts
between this Agreement and the City"s zoning ordinance or other ordinances or regulations.
Is
7.4. Future Appfication.,
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. is Agreement shall notbe construed as evidence that such exemptions do not
apply to the Premises an Required Improvements.
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Neighborhood Empowerment Zone Tax Abatement with 5 Street Studios LLC
7.5. Citv Council Authorization.
This Agreement was authorized by the City Council through approval Mayor and
Council Communication No. C-26236 on May 7, 2013, which, among other tWngs, authorized
the City Manager to execute this Agreement on behalf'of the City.
7.6. Estoppel Curti cote
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 to 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 St and' .
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 authon*zin gy 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 pollicies of the City. Venue for any action
under this Agreement shall he in the State District Court of Tarrant County, Texas. This
1:
Agreement is performable in arrant County, Texas.
7.91. 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 Cont rod
Headings and titles used in this nis Agreement are for reference purposes only and shall
not be deemed a part of this Agreement.
7.11. Entirely o
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Neighborhood Empowerment Zone Tax Abatement with 5t' Street Studios, LLC
the City and Owner, their assigns and successors in interest, as to the matters contained
herein,.. Any prior or contemporaneous oral, or written agreement s hereby declared nul I and
void to the extent in conflict with any provision of this Agreement. This Agreement shall
not be amended unless executed in writ-Ing, by both parties and approved by the City
Council. This Agreement may be executed in multiple counterparts, each of which shall be
considered an otiginal, but all of which shall constitute one instrument.,
EXECUTED this ay of 2013, by the City of Fort Worth, Texas.
EXECUTED this lj 'day of 2013
y
t �' b
5th Studios LLC.
E
CITY OF FORT WORTH..
_AJAoA
By: By
FernandO os,ta, Virgin Ann Lawrence
Assistant City Manager Manager
no
QAQ0
ATTESA : ID
BIva
yj:
dy Kayser
City Secret u, 01 0
1900 000
APPROVED AS, TO FORM AND LEGAL
BY
Melinda Ramos
Assistant City Attorney
M& C-0 C-26236
OFFICIAL RECORD
CITy SECRETARY
Fjr,Wopfflis TX
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Neighborhood Empowerment Zone Tax Abatement with 5 Street Studios LLC
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, ,o w to me to
kn. n
be the person and officer whose name is subscribed to the foregoing m* strument, and acknowledged
tomes
hat 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 Fo+ rt Worth and that he executed the same as the act of the said City for the
A
purposes and cons iderationtherein expressed and in the capacity therein stated.
GIVEN UNDER MY IJAND� AND SEAL OF OFFICE this day of
2013.
Mx �14. Ile EVONIA DANIELS
No�� Plublic in and for
my COMMISSION EXPIRE
july 10 20,13
the tate of Te s ,
fit
Notary's Printed Name
STATE OF TEXAS,
COUNTY OF
BEFORE ME, the undersigned authority, on this day personally appeared Virginia Ann Lawrence,
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
ex I capacity therein stated, and as the act and deed of Manager of 5h Street Stud'
'pressed, in the ios
LLC.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this 20th day of
May 20113.
ANN MARTIN
_RQaET J
Not Public 'in and for
The State of Texas
MARGARET JANE, MARTIN
Notary's Printed Name 11 VJQ&
lot N
NdtW PublIc
STATE OF TEXAS
POMM. D.,
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Neighborhood Empowerment Zone Tax Abatement with 5hStreet Studios LLC
Exhibit I: NEZ Incentives
Exhibit 2: Property Description
E xhl",b*1 t 3 Application-: (NEZ)Incentives and 1 14 ax Abatement
Exhibit : Project description it kl*Dd, number, and location of the proposed
0
improvements.
'bit 5,1% Final Construction Invoices
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Neighborhood Empowerment Zone Tax Abatement with 5 Street Studios LLC
Exhibit I
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE, (NEZ) TAX ABATEMENT POLICY AND BASIC
INCENTIVES
1. GENERAL PURPOSE AND OBJECTIVES
Chapter 378 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 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."
The City, by adopting the following N� EZ Tax Abatement Policy and Basic Incentives, will
promote affordable housing and econom is development in Neighborhood Empowerment Zones.
NEZ incentives will not be granted after the NE Z expires as defined in the resolution designating
the Z. For each NEZ, the City Council may approve additional terms and incentives, as,
permitted by Chapter 3718 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 polic,y shall be construed as an obligation by the City of Fort Worth
to approve any tax abatement application.
Ill. DEFINITION'S
"Abatement, or Tax Abatement" means, a full or partial exemption from City of Fort Worth, ad
valorem taxes, on eligible real and personal property located in a NE Z for a specified period on
the difference between (i) the amount of increase in the appraised value, as reflected on the
certified tax rolli of the appropriate county appraisal district) resulting, from improvements begun
after the execution of' a written Tax Abatement Agreement and (ii) the appraised va,llue of such
real estate prior to execution of a written Tax Abatement, Agreement as reflected on the most
recent certified tax roll of the appropriate county appraisal district for the year prior to the date
on which the Tax Abatement Agreement was executed).
"'Affordable Units" means affordable to persons earning less than 80% Area Median Family
Income (AHED as defined by U.S. Department of Housing and Urban Development (HUD) for
single family housing and under 6'0%AMF1 as defined by HUD for rental and multi-family.
"'Base Value"is the value of the Real Property Improvements, excluding land, as determined by
the Tarrant, County Appraisal Diis,trict, 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, 2 013 1
Tapia l Investment" includes only Real Property lim prove ments 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 and inventory).
"City of Fort Worth Tax Abatement Policy Statem:ent-ly means the policy adopted by City Council.
"CommerciallIndustrial Development Project" is a de elolpiment project which proposes to
i
construct or rehabilitate commercial/industrial facilities on property that is or meets the
requirements to be) zoned commercial,, industrial or mixed use as defined by the City of Fort
Worth Zoning Ordinance.
"Community Facility Development Project"is a development project which proposes, to construct
or rehabilitate community facilities on property that allows such use as defined by the City of
Fort Worth Zoning Ordinance.,
"Eligible Rehabilitation" includes, only physical improvements to Real Property Improvements.
Eligible Rehabilitation, does NOT include personal property (such as furniture, appliances,
equipment, and/or supplies).
"Gross Floor,Area 'is measured by taking the outside dimensions of the building at each floor
level, except that ploirt,ioln 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 in
Busess Enterprise (MBE)"and " m
on Business Enterprise ('WBE)"is, a minority or
woman owned business, that has received certification as either, a certified MBE or certified
WERE by either the North Texas Regional Certificat'ion Agency (NTRCA) 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 moire 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 be zoned mixed-use as described by the City of Fort Worth Zoning
Ordinance.
"Multi-family Development Project" is a development project which proposes to construct or
rehabilitate 3 or moire multi-fam il�y residential living units on a property that is or meets the
requirements to be zoned multi-family or mixed: use as, defined by the City of Fort Worth Zoning
Ordinance.
"New Construction" is a newly constructed habitable structure improvement requiring a
permanent foundation. This excludes accessory structures, such, as sheds and incidental out
buildings.
"Primary Residence" is the residence that has a Homestead Exemption on file with Tarrant
County Appraisal District.
Adopted.—February 51, 2 013, 2
i1projectly, means, a "Residential Project", "Comm erciallIndustrial Development
Project""Community, Facility Development Project'; "Mixed-Use Development Projectyy or a
y y I
"Multi-family Development Project.Yy
"Real Property Improvements" — means a habitable structure as defined by the For Worth
Building Code.
"Reinvestment Zoinely 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 312 of the Texas
Tax Code, or an area designated as an enter pr,is,e zone pursuant to the Texas Enterprise Zone
Act, codified in Chapter 2,303 of the Texas Government Code.
i
",Residential Project" — means less than 3 residential units.
III. M UNICIPAL PROPERTY TAX ABATEMENTS
►., RESIDENTIAL PROPERTIES LOCATED, IN A NE Z- FULL ABATEMENT FOR 5
YEARS,
1 For residential property purchased before NEZ designation, a homeowner shall be
eligible to apply for a tax abatement by meeting the following:
i
a. Property is owner-occupied and the primary residence of the, homeowner prior to
the final NEZ designation. Homeowner shall provide proof of ownership by a
warranty deed, affidavit of heilrship,, 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 30% of the Base Value of the fetal 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 rehabilitated after NE,Z
designation and City Council approval of the, tax abatement;
bi. Property is owner-occupied and is the, primary res,i,dence of the homeowner.
Homeowner shall provide proof of ownership by a warranty deed, affidavit of
heirship, or a probated, will, and shall show proof of primary residence, by
homestead exemption;
c. For rehabilitated Real Property Improvements, Eligible Rehabilitation costs on
the Real Property Improvements shall be equal to or in excess of 301% of the
Base Value of the Real Property Improvements. The seller or owner shall provide,
the it information to support rehabilitation costs;
d. Property is not in a tax-delinqueln�t status when the abatement application is
submitted; and
Adopted—February 5, 2013 3
tiroperty is in conformance with the City of Fort Worth Zoning Ordinance
however, a property use that is legal non-confo�rming shall not be eligible to
receive a tax abatement.
3. For investor owned single family property, an 'investor shall be eligible to apply for a
tax abatement by meeting the following:
a. Real Property Improvements, are constructed or rehabilitated after NEZ
designation and City Council approval, 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-1 and
d. Property is in conformance with the City of' Fort Worth Zoning Ordinance.
B. MULTI-FAMILY DEVELOPMENT PROJECTS LOCATED IN A NEZ,
1. 1:1 00% Abatement for 5-years.
If an applicant ppl"es fo,-a I r a tax abatement aqreement with a term of five veery or
less, this section shell apply,.
Abatements for multi'-family developiment projects for up to 5 years are subject to
City Council approval. The applicant may ripply with the lousing 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 olf' Housing
and Urban Development) and set aside to persons, with incomes at or below
eighty percent (80%) of area median income based on family size. City Council
may waive or reduce the 2,0%, afforidability requirement, on a cas,e-by-c,asie bas,is.
In addition at least 5% of the total units constructed or rehabilitated shall, be,
compliant with the Americans with Disability Act (A DA) in accordance with
Section 504 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
(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
(b) For a rehabilitation project, the Real, Property Imipiro�vemen�ts, must be
rehabilitated after NEZ designation. Eligible Rehabilitation costs on the Real
Property Improvements shall be at least 310% of the Base Value of the Real
Property Improvements. Such Eligible Rehabilitation costs, must come from
the rehabilitation of at least, five (5) residential living units or a minimum
Capital Investment of 200,000,
Adopted—February 5, 2013 4
2. 1%-1 O0% Abatement of City Ad Valorem taxes ualo 10 years
If an ppl*
p I
cant anplies, for a tax abatement Mreement with a term of more than five
,years, this section shall app,ly.,
Abatements for multi-familiy development projects for up to 10 years are subject to,
City Council approval. The, applicant may apply with the Housing and Economic
Development Department for such abatement.
Years 1 throl-!Igh 5 of the Tax Abatement Agreement
Multi-farraly projects shall be eligible for 100% abatement of City ad valorem taxes
for years one through five, of the Tax Abatement Agreement upon the satisfaction of
the following:
At least twenty percent (20%) of the total units, constructed or rehabilitated shall
be affordable as defined by the U., S. Department of Housing and Urban
Development) and set aside to persons with, incomes, at or below eighty percent
(80%) of area median income based on family size. City Council may waive or
reduce the 20% affordability requirement on a c,as,e-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,
mlin,i:mum Capital Investment of$12010,000; or
b. For a rehabilitation project, the Real Property Improvement's 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 Eligibil�e Rehabilitation costs must come from
the rehabilitation of at least 'five (5) residential living units, or a minimum
Capital Investment of'$200,000.
Years, 6 throucih 10 of the Tax Abatement,Agreement
Multi-f'amily projects shall be el,ilgi,bl,e 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 (20%) o,f' 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
(8,0%) of area median income, based on family size. In addition at least 5% of the
total units constructedi or rehabilitated shall be compliant with the Americans with
Diis,ability 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 impla�irments. City Council may waive or
reduce the 20%, affordability requirement on a case-bye-case basis; and
Ado' teed —February 51, 2 0,13 5
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
2. For a rehabil,itati:oin, project,, the Real: Property Improvements must be
rehabilitated after NEZ designation. Eligible Rehabilitation costs on the Real
Property Improvements shall be at least 30% of the Base Value of the Real
Property Improvements. Such Eligible Rehabilitation costs, must come from
the rehabilitation of at least five (5) residential living units or a minimum
Capital Investment of$200,000.
b. Any oth�er terms as City C uncili of the, City of Fort Worth deems, appropr'iate,
including, but not limited to:
1. utilization of Fort Worth corripanies for an agreed!, upon percentage of the total
costs,for construction contracts;
2. utilization of certified minority and women owned business enterprises for an
agreed upon percentage of the total costs for construction contracts,
3. property inspect,iioin,
4. commit to hire an agreed upon percentage of Fort Worth residents
5. comrmit to hire an agreed upon percentage of Central, City residents
6. landscaping;
7. tenant selection plans; and
8. management plans
C. COMMERCIAL, INDUSTRIAL AND COMMUNITY FACILITIES DEVELOPMENT
PROJECTS LOCATED IN A 1 EZ
1. 1 0:0% Abatement of City Ad, Valorelm taxes,for 5 years,
If an applicant app,lies for a tax abatement greement with a term of five years or
less-, this section shall apply.
Abatements for Commercial, Industrial and Community Facilities Development
Projects, for up to 51 years are subject to, City Council approval. The applicant may
apply with the Housing and Economic Development Department for such abatement.
In order to be eligible for a property tax abatement, a newly constructed or
rehabilitated commercial/industrial and community facilities development project in a
NEZ must satisfy the following-.
a. A commercial, industrial or a community facilities development project
constructed after NEZ designation must have a minimulm Ca�pli'tal Investment of
$,75,000; or
bi. For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible
Rehabilitation costs on the Real, Property Improvements shall be at least' 30!% of
the Base Value, of the Real Property Improvements, or $75,000, whichever is
greater.
2. 1%-100% Abatement of twit v Ad Valorem taxes up, to 1 a ears
if an applicant, applies for a tax abatement agreement, with a term of moire than five
years, this section shall
Adopted—Fe iruary 5, 2013 6
abate ments agreements for a Commercial, Industrial and Community Facilities
Development projects, for up to 10 years are subject to City Council approval. The
applicant may apply, with the Houlsin g and Economic Development Department for
such abatement.
Years 1, throe 5 of the Tax Abatement Agreement
Commercial, Industrial and Community Facilities Develolpment projects shall be
eligible for 1001% abatement of' City ad valoirelm taxes for the first five years of the
Tax Abatement Agreement upon the satisfaction of the following:
a. A comm rcial�, industrial or a community facilities, development project
constructed after NEZ designation must have a minimum Capital Investment of
$7"5,000; or
b. For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible
Rehabilitation costs on the Real Property Improvements shall be at least 30% of
the Base Value of the Real Property Improvements, or $75,000, whichever is
g renter.
Years 6, throes, of the Tax Abatement Agreement
Commercial, Industrial and Community Facilities Development projects shall be
eligible, for 1%-1 % abatement of City ad valorem taxes for years six through to of
the Tax Abatement Agreernent upon the satisfaction of the followwing-,
a A commercial, indulstrial, or a community facilities developm�ent project
constructed after NEZ designation must have a minimum Capital
Invest,m eint of $75,1000 and must meet the requirements of subsection (c)
below ; or
b. For a rehabillitation, project, it must be rehabilitated after NEZ designation.
Eligible Rehabilitation costs on the Real, Property Improvements shall be
at least 30% of the Base Value of 'the Real Property Improvements, or
$75,000, whichever is greater and meet the requ,irements of subsection
(c), below.
c. Any other terms as City Council, of the City of Fort Worth deems
appropriate, including, but not limited to
1. utilization of Fort Worth companies for an agreed upon percentage of
the total costs for construct,ion con-tracts;
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, to hire an agreed upon percentage of Central City residents-,
and
5. la,nds,capling.
Adopted—February 5, 2 013 7
D. MIIXED-USE DEVELOPMENT PROJECTS LOCATED, IN A NEZ
1. 100% Abaternient of Citv Ad Valorem, taxes for 5 years
If an applicant applies for a tax abatement, agreement with a term of five_years, or
loss.1- his section shall
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
Development Department for such abatement.
In order to be eligible for a property tax abatement, upon completion, a newly
constructed or rehabilitated mixed-use development project in a NE,Z must satisfy the
following:
a. Residential uses in the project constitute 20 percent or more of the total Gross
Floor Area of the project. At least twenty percent (20%) of the total units
constructed or rehabilitated shall) be affordable (as defined by the U. S.
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:,
farnilly 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
impairments; and
b. Office, eating and entertainment, an d/oir 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 $200,000; or
(2) For a rehabilitation project, it must be rehabilitated after N,EZ designation.
Eli ilbile 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.
2. 1%-100% Abatement of City Ad Valorem taxes LIP to 10
If an applicant agplies for a tax abatement a anent with a term of more than five
ears 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 !Dousing and
Economic Development Department for such abatement.
Years 1 through 5 of the Tax Abatement Agreement
Mixed Use Development projects shall be eligible for 100% abatement of' City ad
valorem taxes for the first five years of the Tax Abatement Agreement upon the
satisfaction of the following.-
Adopted—February , 2 013, 8
a Residential uses iin the project constitute 20 percent or more of the total Gross
Floor, Area of' the project. At least twenty percent (20%) of the total units
constructed or rehabilitated shall be affordable (as defined by the U. S.
Department of Housing and Urban Deve�l�opmient) 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 rehablili�ta,te'd
shall be compliant with the Americans with Disability Act (A DA) in accordance
with Section 504 of the Rehabilitation Act, and must be fully accessible and 2%
of the total units constructed must be fully accessiibile to persons with sensory
impairments; and
b. Office, eating and entertainment, and/or retail sales and service uses in the
+4
project constitute 10 percent or more of the total Gross F'l�ooir Area of the project;
and
c., A new mixed-use development project constructed after NEZ designation must
have a minimum uapiital Investment of $200,000; 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, , whichever is greater.
Years 6 through 10 of the Tax Abatement Aq reement
l lixed 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 21,01 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 .
Department of Housing and Urban Development) and set aside to persons with
incomes at or below eighty percent (8,0%) of area median income based on
family size. In addition at least 5% of the tote] units constructed or rehabilitated
shall be compliant with the Americans with Disability Act (A DA) 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;
p
c. A new mixed-use development project constructed after NEZ designation must
11 i
have a minimum Capital Investment of $2,100,0100; or for a rehabilitation project, it
I roi
must be rehabilitated after NEZ designation. Elii gibile 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; and
d. Any other terms as City Council of the City of Fort Worth deems appropriate,
including,, but not li'mited to
Adopted--February 5, 2 013 9
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,,
31, property inspection;
4. commit to hire an agreed upon percentage of' Fort Worth presidents
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 will determine
on a case-by-case basis if the tax abatement incentives, in Section 111 will be offered
to eligible Projects. Eligible Projects, must meet all eligibility requirements spec,ified
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 Department. In addition, 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.
3. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in
order to be considered "Ieligible" to apply for a tax abatement under this Policy, the
Woodhaven Community Development Corporation and the Woodhaven
Neighborhood Association must have submitted a letter of support for the Project to
the City of Fort Worth
4. Tax Abatements for a new construction project will automatically terminate two,
years after Council approval of the tax abatement if a building permit has not been
pulled and a foundation has not been poured.
5. Tax Abatements, for a rehabilitation project will automatically terminate two years
after 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 doling quent in playilng: property taxes for any property owned by the
owner/dev,el�olper,: except that an owner/delvelopler may enter into a tax
ablatemen't agreement with the city of Fort Worth for a specific Project if
1. the Project meets NEZ tax 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, 2 013 1 0
b I
Not have any City of Fort Worth liens filed against any property owned by the
applicant property olwner/developer. "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 ellig�ible for tax abatements.
8. Once a NEZ property owner of a residential property (including multi-family) in the
NEZ satisfies the criteria set forth in Sections IIIAI E.1. and E.2., and appilies for an
abatement, a property owner may enter into a tax abatement agreement with the City
of Fort Worth. The tax abatement agreement shall autornatically term,inate if the
property subject, to the tax abatement agreement is in violation of the City of Fort
Worth's Minimurn Building: Standards Code and the owner is convicted of such
violation.
91. A tax abatement granted under the criteria set forth in Section Ill. can only be granted
once for a property in a NEZ for a maximum term of as specified in the agreement., If
a property on which tax is being abated is sold, the City may assign the tax
abatement agreement for the remaining term once the new owner submits an
application so long as the new owner complies with all of' the terms of the tax
abatement agreement.8 A property owner/developer of a, multifamily
:ly developent,
commercial, industrial, community facilities and m�ixed-use development project, in
the NEZ who desires a tax abatement under Sections 111I.B, C or D must:
a. Satisfy the criteria set forth in Sections 1113, C or D, as applicable, and Sections
III.E.1 E.2; and E3. and
b. File an application with the Housing and Economic Development Department, as
applicable; and
c. The property owner must enter into a tax abatement agreement with the City of
Fort Worth. In addition to the other terms of agreement, the tax abatement
agreement all provide that the agreement shall automatically terminate if the
owner receives one coinvict,ion 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 tax abatement agreement on the property for the remaining term.
10. If the terms of the tax, abatement agreement are snot met, the C,ity Council has the
right to cancel or amend the abatement agreement. In the event of cancellation, the
recapture of abated taxes, s all 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 finanvial statements, in each year during the life of the
agreement prior to granting a tax abatement in any given year, (2) conduct an on site
inspection of the project in each year during the life of the abatement to verify
compliance with the terms of the tax abatement agreement, (3) terminate the
agreement if the Project contains or will contain a sexually oriented business (4
terminate the agreement, as determined in City's sole discretion,, if the Project
contains or will contain a Liquor store or package store.,
Adopted—Feb-ruary 5, 2013 11
12. on 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 tax abatement from the City of Fort Worth shall
provide information and documentation 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 applicable term of the agreement. Failure to report
'this informatlion and to provide the required certification by the above d�eadlline, shall
result in cancellation of agreement and any taxes abated in the prior year beinig due
and payable.
13. If a property in the NEE on which tax is being abated is s,ol�d�,, 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 a beta mant
agreement results in automatic cancellation of the agreement and recapture of any
taxes abated after the data on which an unspecified assignment occurred.
F. APPLICATION FEE
1. An application fee of$25.00 for all bas,iic incentives, excluding tax abatements.
2. The application fee for residential tax abatements governed under Section III.A is
$100.
3. 'The application fee for multi-family, commercial, industrial, community facilities, and
mixed-use development projects governed under Sections III.B., C. and D., is one-
half of one percent (01.,51%,) of the proposed Project's Capital Inves,tm ent, with a $2100
minimum not to exceed 2,,
000. The Application Fee shall not be credited or
$
refunded to any party for any reason.
IV. FEE WAIVERS1
A. ELIGIBLE RECIPIENTSIPR,OPERTIES
1. City Council shall determine on a c,ase-by-case basis whether a Project that will
contain or, contains a liquor store or package store is eligible to apply for a, fee
waiver.
2. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order
to be considered "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.
Worth—however, once the NEZ Plan is submitted for the Woodhaven NEZ, this will
no longer be required.3. Projects to be constructed on property to be purchased,
under a con-tract 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 City;
b. must not be delinquent in paying ng 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 appliicant
property own�er/developer, including but not limited to, weed liens, demolition
liens,, board-up/open structure liens and paving liens; and
d. of a Project that rill contain or contains, a liquor store,, package store or a sexually
oriented business has received City Council's, determiinatilo,n 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
i
approval of any aspect of the Piromect. Before construction the applicant must
ensure that the pirome,ct is located in the correct zoninq district.,
B. DEVELOPMENT FEES
1 Once the Application for N�EZ Incentives has been approved and certified by the City, the
following fees for services performed bV the City of' Fort Worth for Projects in the NE,Z
are waived for new construction projects or rehabilitation projects -that expend at least
3,0% of the Base Value of the Real Property Improvements on Eligible Rehabilitation
costs:
a) All Building Permit related Fees (including Plans Review and Inspections) except as
stated in 1V B. 2. below
b) Plat,Application Fee (including Concept Plan, Preliminary Plat, Final Plat, Short Form
Replat)
c), Board of Adjustment Application Fee
d) Demolition fee
e) Structure: Moving Fee
f) Community Facilities Agreement (CFA)Application Fee
g) Zoning Application Fee
h) Street and Utility Easement Vacation Application Fee
i) Ordinance, Inspection Fees,
j) Consent/Encroachmient 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 reapply
shall not be waived. In addition, penalties and extension fees or re-permitting fees will
not be wa,ived.,
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 Fire Inspection Fees
Adopted— February 5, 2013 13
4. Other development related fees not specified above will be considered for approval by
City Council on a case-by-case basis.
C. IMPACTFEES
1. Single family and multi family residential development projects in the N'EZ.
Automatic 100% wa,iver of water and wastewater impact fees will be applied.
2. Commercial, industrial, mixed-use, or community facility development projects in the
NEZ.
a. Automatic 1100% waiver of water and wastewater impact fees up to, $515,,000 or
equivalent to two 6-inch meters for each commercial, industrial, mixed'-use or
community facility development project; whichever is less.
b. If the project requests an impact fee waiver exceeding $55,000 or requesting a
waiver for larger,en or more,than two, 61-inch meter exceeding $1515,000, than City
Council approval is required. Applicant may request the additlional amount of
impact fee waiver through the Planning and Development Department.
V. RELEASE OF CITY LIENS
A. ELIGIBLE RECI P1 E,NTS/P ROPE RT1 ES
1. Project must be located in a NEZ.
21. City Colun,ciii shall determine on a, case-bly-casie basis whether a Project that will
contain or contains a liquor store or package store is eligible to receive a release of
City liens,.
3. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order
to be considered "eligible"' to apply for release of city liens under this Policy, the
Woodhaven Community Devel!olpmenit Corporation and the Woodhaven
Neighborhood Association must have submitted a letter of support for the Project to
the City of Fort Worth.
4. Projects to be constructed on property to be purchased under a contract for deed are
not eligible for any release of'City Liens.
5. In order, for a property owner/developer to be eligible to apply for a release of city
liens contained in Section V-13.) C., D., and E. for a Project, the property
owner/developer:
a,., must submit an application to the City;
b. must not be 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 piroplert ►was demolished within the last five (5) years;
d. must not have any City of Fort Worth liens filed against any other property owned
by the apipilicant property owner/developer. "Liens" includes, but is not limited to,
weed liens, demolition liens, board up/open structure liens and paving liens; and
Adopted—February 5, 2013 1 4
e. of'a Project that contains or will contain a liquor store, package store, or a sexually
oriented business has received it Council's delterrninat,ion 'the Project is eligible
to receive a release of City liens.,
6. In order for a Rehabilitation Project to qualify for a release of city liens, the
ownier/developer must spend Eligible Rehabilitation costs on the Property of at least
30% of the Base Value of the Property.
7. Liens listed ini, 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.
B, WEED LIENS
The following are eligible to apply for release of weed liens:
1. Single unit owners performing rehabilitation on their properties.
2. Builders or developers constructing new homes on vacant lots.
3. Owners performing rehabilitation on multi-famili y, commercial, industrial, mixed-u�sie,,
or community facility properties.
4. Developeirs, constructing new multi-family, commerciall,i industrial, mixed-use or
community facility development projects.,
C. DEMOLITION LIENS,
Builders or developers developing or rehabilitating a property for a Project are eligible, to
apply for release of dem�ollitioln liens, for up to $30,000. Releases of demolition Miens in
excess of $301,000 are subject to City Council approval.,
Dip BOARD-UP/OPEN STRUCTURE LIENS
The foll�lowi,ngi, are el'i,gible to apply for release of board-up/open structure liens:
1. Single unit owners performing rehabilitation on their properties.
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 following are eligible to apply for release of paving liens':
1. Single unit owners ple�rformiinig rehabilitation on their properl-Jes.
2. Buildeirs, 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, 2 013, 15
4. Developers constructing multi-family, commercial,, industrial, mixed-use, or
community foci it projects.
F. All other City liens, w ill not be waived.
V11. PROCEDURAL STEP'S
A. APPLICATION SUBMISSION
1. The applicant. for NEZ incentives under Sections, Ill. IV.,, and V. must complete and
submit a City of' Fort Worth 'Application foir NEE, Incentives" and pay the appropriate
application fee to the Planning and Development Department, as applicable.
2. The applicant for incentives under Sections III.C.2 and D. must also 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 Qualifying Development Projlects:,
3. All HE Z certifications for incentives,will expire after five years.
4. NEE benefits will continue for certified projects (18) eighteen months afteir a NEZ is
terminated or the N�EZ boundary changed.
B. CERTIFICATIONS FOR APPLICATIONS UNDER SE,criONS 111111. IV, AND V
1. The Planning and Development Department will review the application for accuracy
and completeness. A complete applicati�on must include proof that:
1. The Project" is located in a I EZ;
2. The Public Notification Process, has been completed as stated in section IX;
3. The project is in compil�iance with the adopted NEZ plan; and
4. The Council Member for the district in which the project is located has approvedi the
project.
Once,the Planning and Development Department determines that the application is
complete, the Planningi and Development Department will certify,-the property
owner/developler's eligibility to receive tax abatements and/or basic incentives based on
the criteria set forth in Section 111.7 IV., and V. of-this, policy, as applicable.. Once an
applicant's eligibility is, certified, the Planning and Development Department will inform
appropriate departmients, administering the incentives. An orientation meeting with City
departments and the appilicant 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 Econ�olm�ic Development Department: property tax abatement for
commercial,, industrial, community facilities or mixed-use development projects.
c. Planning and Development Department: development fee waivers and release of
City liens,.
d. Water Department: impact fee waivers.
e. Other appropriate departments, if applicable.
Adopted—February 5, 201 3 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 agreement with the applicant.
b. For a completed and certified multi-family development project application for
more than five years of tax abatement:
(1) The Housing and Econori Development Department will evaluate a
completed and certified application based on:
(a)The proJect's increase in the value of-the tax base.
(b), Costs to the City (such as infrastructure participation, etc.).
(c) Percent of construction contracts committed to:
(i), Fort Worth biased firms, and
(ii) Minority and Women Owned Business En�t�erpiriisies (M/WBEs).
(d) other items which the City and the applicant may negotiate.
i
(3) Consideration by the City Council
The City Council retains sole authority to, approve or deny any tax abatement
agreement and is under no, obligation to approve any tax abatement
application or tax abatement agreement. The City of Fort Worth is under no
obligation to provide tax abatement in any amount or value to any applicant.
c. Effective Date for Approved', Agreements
I i
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 yin the
tax abatement agreement). Unless otherwise specified in the agreement, taxes
levied during the construction of the project shall be due and payable.
2. Property Tax Abatement for Commercial, Industrial, Community Facilities, and
Mixed-Use Development Projects
a. For a completed and certified application for no more than five years of' tax
abatement, with Council approval, the City Manager shall execute a tax
abatement agreement with the applicant.
b. For a completed and certified application for more than fiive years of' tax
abatement:
(1), The Housing and Economic Development Depaftment will evaluate a
completed and certified application based ono.
(a) The project's increase in the value of the tax base.
(b) Costs to the City(such as infrastructure participation, etc.).
(c) Percent of construction contracts committed to
(i) Fort Worth based firms, and
(ii) Minority and Woimlein owned Business Enterprises (M1WBEs).
Adopted—February 5, 20 13, 17
(d) Other items which the City and the applicant may negotiate.,
(2) Consideration by the City Council
The City Council retains sole authority to approve or deny any tax abatement
agreement and is under no obligation to approve any tax abatement
application or tax abatement agreement. The City of Fort Worth is under no
obligation to provide tax abatement in any amount or value to any applicant.
c. Effective Date for Approved Agreements
All tax abatements approved by the, City Council will become effective on
January 1 of the year following the year in which a Certificate of Occupancy' (CO)
is issued for the qualifying developiment project (unless otherwise specified in the
tax abatement agreement). Unless otherwise spec,ified in the agreement, taxes
levied during the construction of the project shall be due and payable.
3. Development Fee 'Waivers
a. For certified applications of development fee waivers that do not require Council
approval, the Planning and Development Department w ill review the certified,
applicant's application and grant appropriate incentives.
b. For certified applications of development fee waivers, that require Council
approval, City staff w,ill review the certified applicant's application and make
appropriate recommendations, to the city Colunc,i�l.,
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 recom,mend ations 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 NEZ tax abatement
applicants. The Planning & Development Department will release lien�s, on NEE basic
incentives appliica�nts.
V111. RE,F'U�N OLICY
In order for an owner developer of a Project in a NEZ 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 NIIEZ in the Resolution adopting
the NEZ:
Adopted— February 5, 20,13 18
1. Municipal sa,les, tax refund
2. Ho�m buy rs assistance
3. Gap financing
4. Land assembly
5. Conveyance of tax foreclosure properties
6. Infrastructure improvements
7. Support for Low Income H using Tax Credit (LIHTC) applications
81. Land use incentives and zoning/building code exemptions, e.g., mixed-use, density
bonus, parking exemption
9. Tax Increment Financing (TI F)
10. Public Improvement istrict (PI D)
11. Tax-exempt bond financing
12. New Model Blocks
13. Loan guaranteles
14. Equity investments
15. Other incentives that will effectuate the intent and purposes ofNEZ.,
1XI Public Notification
a. Subject to subsection (b), in order for an owner/developer to, apply to receive any
incentives provided for under the NEZ Tax Abatement Policy and Basic Incentives,
an owner/developer 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 ass oc,i ,ti on�s 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 Based Organizations shall be along the property
lines, of the street fronts and from front door to front door,, ands in direct line
across the intersections.
b. Subsection (a) shall be s,a,t,isifiled 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/devel�oper 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, fail�ed to arrange a
meeting with the owner/developer within two weeks, of' ilnitial contact.
c. Accepted proof of "attempts to, meet with the registered organizations gill be
satisfied with the following.-
1., a copy of a clertified 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 describling the project
and requesting a meeting and the response fron"11 the organization.
Adopted— February 5, 2 013 19
X. Ineligiffile Proleict,s
The following Projects, or Businesses s,hal�l not be eligiibile for any incentives under the City' of
Fort Worth's Neighborhood Empowerment Zone (NEE) Tax Abatement Policy and Basic
Incentives:
1. Sexually Oriented Businesses
2., Ilion residential mobile structures,
XL Denied Avipfications
a. N�EZ applications will be denied 30 days after submission if all required
documentation is not received by the City.
b., The applicant, will have days after the date of denial to resubmit the NEZ
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 NEZ Tax Abatement Ploil�icy end Basic Incentives, City Departments are
authorized to waive impact and development fees for qualified projects, located in a
designated N'EZ. The impaCt Tees, include only water and sewer impact fees, up to
$515,,000 for commercial, industrial,, mixed-use or community facilities projects. The
development foes that can be waived -through the NEZ include.-
1. All building permit fees (including Plans Review and Inspections)
2. Plat application fee (including concept plan, pirel�im�iniary plat, final plat, short form
r,eplat,)
3. Board of Adjustment application,fee
4. Demolition fee
5. Structure moving fee
6. Community Facilities Agreement (CFA) application fee
7. Zoning application fee
8. Street and utility easement vacation application fee.
To take advantage of these waivers, applicants, need to obtain a certification letter from
the Planning and Development Department.
Conditions for Refunds
The City will consider refunds only when circumstances beyond the developers control
prevent theme 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 projlect meets all criteria to receive a fee waiver under the 1 EZ Tax
Abatement and Basic Incentives Pollilcy 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/developer.
Refund Charge
A refund charge will be assessed to help defray administration cost associated with the
processing of refund check. The charge shall he 201%, of the amount of the refund. This
charge will be automatically deducted from the total refund amount.
Statute ofLi*mftat*ions,
Any request, action or proceeding concerning, the refund of fees normally wail ed
through the NEZ m�u�st be filed within ninety days following the date that the fees were
p id. An apiplica�n�t who does not s twit a refund request within 90 days of the
al
transaction shall not qualify for a refund.
To obtain a refund the applicant needs to
• submit a NEZ application to the Planning and Development Department for
determination of the eligibility for NEZ fee waivers, and
• submit a written request to the De pa i
rtment n which the fees were paid. Upon
receiving a confirmation from the Planning and Development Department that the
project meets, all N'EZ fee waiver criteria, that Department shall process the ireque st
based' on the qualifications discussed in this policy.
�Exempti"ons
The provisions of this policy do not apply to
a. Fees that are not waived through the NIIEZ program; and
b. Taxes and special assessments'- and
c. City liens such as mowing, board-up, trash, demollition and paving liens.
An applicant shall not qualify for any refund if:
a. The applicant was made aware of the NEZ incentives before he/she pays the
fees-, or,
b. The applicant does not meet the requirements for NIEZ incentives at the time
he/she paid the fees; or
c. The applicant paid the fees before the refund policy was put in place-- or
d. The app icant plaid the fees before the designation date of the NEZ.
Disclaimer
In the event of any conflict between the City's ordinances or regulations and this policy,
such ordinances or regulations shall control. In the event of any conflict between this
Adopted-February 5 2 0!13 22
p�ollicy and other policies or regulations adopted by the City Department issuing the
refuind, such department, policies or regu�lations shall cony trol. The City reserves the right
to deny any or al�l request for refuinds.
Adopted-February 5, 2013 23
Exhibit 2,
PMerty Lggal Descn*p n
28 17 West 5 Ih Street, Block 161, Lots 5 and 6, Vwi Zan 's 2 d Addition, in the City of Fort
Worth, Tarrant County, Texas, and as shown on the Plat recorded in, Volume 106, Page
118,,Tarrant County,Texas,
tAJJJJ1A.dUVL1 11V Exhibit 3
FDT
0A I WORTH ApplicihonNo, N, D -0
CITY OF FORT'WORTH
NEIL UBORHOOD ENEVONVERMEENT ZON-E (N-EZ) pROGRAA;l
00110 -
--P-R0.TFCT CVRTIVICATION APPLICA'TTON
,
1. APPLICATION CHECK LIST - Pliense sub w iit the following documentation'
A Completed application fix-in
A list of all propeilies owned by the applicant, oNNiier, developer. a,%-Noci lie pi-Incipals,partners.and eiits
Ill tl,e Citv Foil Woith
Non Rrfundable Application fee—For all Basic hicentives applic4ations excluding Tax Abatenietit the
application fee is$42)500 For multifamily. conunerciaL hidistf i.al.commercial faciliti�, aid tnixed-tip tax
abatement appllcattons .506 of the total Capital 1nve:5tinctit of the Vroject.Nvidi a$A2100.010 iiiiiiiintim ail(l
aot to exceed$2..000,W.- For res-ideMial tax abatement applicatiolm $100,.0 o pet hollse�
Proof of owner tip.such as a warrmity deed.affidavit of heii-ship,or a probated will OR evidence of site
control. simcil as option to buy(A registered warrant v, deed Is reqWred foi•tax abateinent app fication.)
0,
Title abstract of the pro perty,(on hr if apply-hig for relea se of(1-ty W its)
A
re iced 1 Ix-17 floor phui, c-me plall, 1,11d,%.-Ite elevatlon witil
,a ivritten detailed prqject(ks-crlptlou that uicludes a cons-,truction tulle kne
El A detatled 1u itens Nicilzet .4iowinst the cost breakdomni for the pfoJect
El Copy of Incorporation.Papers ikoting all pt1w1pals,Dart iters, and agents if applicable
El gffl!4Ee(,1-meet With the OcNincilincinber and Nei sdiboi-hood &other Orgmilzations repre:msentuio the NEZ
as otitliiied ui the Public Notice re(plifelilent of the NEZ Policy and,(3tudelines revvs-edApyll 6., 2004 of
followed.olrljidelinc�of NEZ Stratec..,ric Plan if a Strategic Plan is in place for the.T- ecific NEZ.
support letterfi-oni Woodhaven Neiohboi-hood Association aiid Woodiaven Conic uinity Developtitent
Corporation For projects l,o rat ed in WcKxlhaven NEZ only
1NC0rvJ1PLETX APPLICATIONS NN7DLL NOT BE PROCESSED FOR CTS.117 SON UN TEL ALL REQ171RED
DOCITAIENTS SHOWN IN I A-RON7V CHECK"ILLST ARE SUB NCI TTED WITHIN 10 DAYS, AFTER I
-kPPLICATION IS RE(TIVED.
YOJT XfJT1SJr A,.PPLI-0 FOR TAX ABA TKNIENT BEFORE ANY BUILDING PFRIN-11TS ARE ISSUED FOR YOUR
PROPERTY AND BEFORE ANY 131PROVEAUNTS ARE A, 11)F TO YOUR PROPERTY. IT TAKES 60 TO 90
BUSINESS, DAYS TO CONIPLETE THE TAX ABATFIVENT ACY'REEMENT APPROVAL PROCESS AFTER THE
ISSITANC7E OF NEZ CERTEVICATION DEPEN-DING ON Tff C0f*1PLF--XITY OF YOUR PROJECT. ALL
BlLMDING PERAUT'S MUST BE Pt9LLED WITHIN TEUE 12 MONTH PUUOD THAT CERTMCATION WAS
APPROVED.OR WITHIN THY 12 INIONTH PERIOD THAT TEE TAX ABATFNIEEN'T WAS APFRO'%TD.CSR YOU
WELL BE REQUIRED TO RE--A.PPLY FOR NEZ INCENTI17E S.,
11. APPLICANT AGENT INFORMATION
1. Appticalit# 1r4, Contact Person. CAW
3. Addi-ess:
7\4 L lc-� 7 S7_1
Street (1 t State Zip
4. Phone no..- 5. Fax No.
An %4 1`7 1-7 71-1-
6. Em *
Agent(if any) An
82 Address: 0 'Poirr �4j 0ex
0 4
street C1 ty, St a te Zip
4116% 10
9. Phone no.: "AA-7 10, Fax No.. 61"70 -73-70 ",%C.
Revised July 2121,2010
I of 6 3/26/2013 10-59 AM
�APIJU4.MWIL INQ
FoRTWORTH Applicatuni No
"I'lov
PROJFCT ELIGIBILUY
1. Please list (lown the ad(lresses. aud 1e9JI (I"MiPtionS Of' the project and other properfiess your
01'2allftatiOil OWUS W Fort Worth. Attach metes, and bountiq d"wription it no ad(II-ess eg-1
or I
(leScription is available. Attach a map sho%1ug the location of the project'.
TaUe I yrvertv Owners
A(IdITSS
Zip Ode
(PipleO Lot:Oioji) Subdivision Name Lot No.
BI ock No.
4 P104W
11 -71 &r `71 0
pgr_
1tv of Fort Worth continue ou a separate sheet and attach it necess.sary.
Other properties owned in, the I
loll
s71 -71,1 D, -7 AD
Li o7 JIAIQ
3A2—V__:� !6
o W
2. For each property DOM In Table 1. please check the boxes below to'Indicate if*-
0 there ,ue ttLxes Pti'st(hie-*, Of'
6 there afe City hens'. or
You onewling the "Ipplic'Clic, developer. tisi;ouocites. :i(gei Vs. prmcipks) have been szu ect to i, BiWcWig.
Staiidudq Conuiwsi uou` :) ef of Demohtioti ifliefe the propeilN�, ivv.- demohshed xv the hid five
'ra]Ae 2 Propettv''Taxes and Citv Deus
Cltv Ileac on Property,
Taxe4 r NN#" Be cord-up Open Dem*M�*& PswAng 011410-Of
$ Due Liens Stu c tw e Lieu 8 Liff"S LAVUS DemoUtiou i
17—
Li
L_J
Li LJ1
MON.
o
...................
(Please attark,addidoual,sheox off`Pape.ax ne"Ied.)
If there are exec due or liens agaiinst any property in the City of Fort Worth you mav, not be eligible
for NE Z incentives
Revisc*l July 1
2 of 6 3/26/2013 10:5)8 AM
JV11"UVAJ 1CAJJV1M0tJV1LJJ%JU
t1plucluluuLu I
FORT WNTH Appkabou No
3. Do you,oAm other properties under other names?
W 0 0 Yes No
If Y es, Please specify
4. Does the proposed PFOJeCt Conform NsIth City of Fort Worth Zoning? Yes No
If no, Mint steps are beiaig taken.to uisiue com ph,uice')
1 -----T
Projec t El 1:1 1 LOK I
a Swig It Fam dy Mu bi-F.-unih- Commel"CL-d ludus-ti-
Type" td Community Pacthfies ML
Over Occupied
RmtAlpraptrty
6. Please desciibe(he proposed residential or commercial project---,99A86 Aklm Se",
Imm
al, mixed-use project. please describe the types of
If your projectlis a commer 'al,industn'al.oi
businesses that are being proposed., T-0
8. Is this a new construction or rehab project? E]Ne%i:,Colt-4nictioti fig Rehab
9. How much is the total development cost of your project? I
L 1:
0
10. Will the eligible rehabifltation work' equal to at least 3004' of the Tarrant Appraisal District (TAD)
assessed value of the structure during the year r,ebabditatton occurs.? &I Yes 0 No
4�Elicyible i-ehabilitition iiichides onl r Physical 1111provelikents to fe,411,propeilv-- It does,NOT include-
Ront v-,u- en61g con-sistiiio of dviiu-1ink,Or solld material Construction.pet-;onal propeity s-iich tis firintore.,
appliances,, e(pupinent. ind/ot-s-up pliels. To®rl eligible i-di.1bilitation cots diall e(pial to ou exceed 30%of the
T',-\D al pi,-tus:cd vi(lue of the Anicture(Itifing the Nre-tv-i-diabilitation occtirs
11. How m tic h is-the total square footage of yow project.) '1-3 q(piae feet
If appong for a tax abatement please answer questions 12,-16.1f not skiff to part III Incentives
12. For a sluele-famity homeownershl,p, mft,ed-use, or midti-familv development-Pro,pct, please ful out
the number of residential units based on income range of owners or ren tiers in the following table.
Tatfie 3 Ntittiber of R".- drodul, Uid(s and Income Raupe of Owiters or Reuftn-s
Niunber of Uii6 Pert eitage
hy,ome Rmge
800 0 of-kN EFJ*
_V 01 belokV 801D 0 of J
TOW Units
*AMM,�Are-ti Mediaa Family Income, Plevve see<*4ichm eat for tacome w d howint payment gluidelaues.
13. For a inultifamJ11 w-glect to be. quafilled for (" abatement', at least 2009 of total units shall be
affordable to families at or below$00/09 of ANDT 'he& thebox if you are requesting a Nv:uiver of this
14. For a commercial. industrial or commitnity facififies project, inifflcate square footage of tion-
1-e,sklenfial space.
Coiywiercial Conuumxity Faeffities
rn squaie feet
3 r — s(p i-(u e A--0 s(fume feet
-J-
fe et I
Re-6s;td July 221.2010 3
of 6 3/26/2013 1O.-58 AM
tom,VPg'"1UV11 k 01 S.0 A i%Mto A
FornVir WORTH Itc-Ai-PP hoi i No
How tntich will be volir apital 1nvewAtJn,eDt* On the IM-0j Please its-P the ItAlowing table to p ro** de
the detaffsand amount of your CaPital IUVeStmenll(Attached additional Sheets it necessai-y').
TalAe 4 Itemized BOrd et of the Project
Items Amount Notes
100
............
Total
***Ctipiti-dl.u,t-e,qhueut 'wclxtdes oul l-calpropeity 'au'pi-ol,-cinents Rich 4-wilewfixi lit i", "ould stimchires,site U"Uprovetueuts.filcility
expmgion- and facility toodenimation ('--q)1hA hi've.qhwmit D019 NOT 111chide I.-Md -WCrIwItion covts' :l ide-01. any exc4la),f4
umprovements.or persoual propertN (6-tich u machmety,c(iwinent,audJormipphes or viventory),
16. For a Commerdal, Indusfill ,commu factl1tv 01, Mixed--pis ect, how many eiii ployees N011 the
pivi ect generate"?-OkOL4 0
1'. for a ed-use pri)ject please in irate the peucentage of A Uses.,In (he project in the following talAe.
Table Percentage of Uses. in a Mlxed-Use Project
Tvpe Square Footage Percentage
Rekdeiaial
Office
Eadi
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Ill. INCENTIVES What incentives. are you applyIng for'?
Mimi d pal ft
er,6r YU Abatements
Mast proilde Float Plat Cabinet and Mide for Tax Abateinent abillet Slide
El More thumi:'syeais
5'%,eafs
10
DReszidenfi C-AvIler OcCITied E]Resideittial Rent td Pro peily DAIxulineitts(5 phis iunts) Conunefcial
Develol2 men j Fee WalveLs
All bujl(Wig perlint rehited fees(uiclwhng PlwLs ReNlew xid his-pectioms)
EJ Pi apphcatikm fee(uicli)(big c oi icept ply),preLuimi-my pt at, fuial plat. shott foan fe pi itt)
7oning al)f4jcation fee, Tioor d fee
Demohdoji fee Stai-tictiue inov-aig fee
C.'wim smut-N,Facilities, .age emeig T'A)apphcatioii fee
street 111d iitiWxr eagement v',acactioji aplAication fee
Impact F"INraivers -The maximum w Ater twastewa ter,impact fee waiver amount for a commercial,industrial,mixed-
use.or community facility development project is equivalent to the watertwastewater impact fee of tVM 6-inch meters
E Water (Metef SIze i No of metei-s Tinirsportatioji
Release of ON Liens
E Weed hens Pa'%mig,hems L]13 oar d up,,opeii s1mcftife Hews Demohtioii fens
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Mar 01 13 1 6a Lawrence Cmis Ent, 903-592-0182 p
Mac 29 1,3 �I 12a IN Wton
kORTWOIRTH, Appicittiou No.
rl U A c paq DIN,LEDIG.NTENTS
I lwi,eby ceai& atat tht jiLfol-Il lnuo3k pic"wi(led isr LI-Ile mid �Icclluncc to dic be-SA of lay 1-3tuvviedge. t fiereby
iowkdi*-e tIW I have m ceived a capv orNEz Bvic I ix eicvcs. Au ch g ivei-ms r I)e p-j-cnq'
%, iulg of rxx a�w tell un#S.fee
w-tlivels aixi i-ele of Citv iiems, mid MK smy VIOLATION cit' the rlm of ilic NEZ Bassic bireutives
N IISREPRESE NTA,T'ION sluw cousl--tl re ualul(Lz for lejectioll of all rapipficadoll Of tca-) a lfioll of'illcelitives M the
dis atera all Of I I Ir C ity
I luldevs-uxld d"flit appi� �01 f fee w-mvetN7 mid otlm*iiicaitives im�x delevi td I o be approval of;wv a-.cpe c t of
t liroject. I understand,ti tat I am respom,--Ute ui obtmiW' Ig 1eqnUed pej-11w.s x1d ijLjXCIIk4Ii frOM ILIt
emnuijie:lite jwcject i:;Located ill,the cmtcl zawig di.xrtict
I lulderstiuld that Iny appficatioii vill ticA be prxes;-sed if ,s ;ucom)Icte- I ay„ve ko 17rovide -UL V 'tl&Uh0l4I;,d
RI detCnlI1ltU]A di�awbtyae"ricquiesle(l, the city
(PAI N TE D OR T Y PF D N'A NIE �--A(UTYJORIZIIED SIGNATURY.)
1114risic mall of%r=Y0411 applicn(jou to:
City of Fort Worth Plaualue,aud Dev-d*pmeat Department
1003 Tbiv<)Lk mortou Street.Fovt Wot-Ift.Texits X6102
Tet:(81 39z-n22 nata(81,1-7)39z-8ii 6
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'1125120,13 134 FM
Exhibit 4
Project Descri-ption
Renovate a 5,300 square foot auto tire service building into a maximum. of 5 workshop/
studios for use by artisans and light fabrication with a shared conference room, accessible
for all studios.
• Replace existing garage doors with new windows, and doors covered with a
suspended canopy.
• Planter boxes installed between the window openings to provide landscaping.
• The front will be stucco and windows or roll Lip doors will also be added to the rear of
each unit to provide access from the alley.
• Equip each space with a new accessible restroorn with individual :VAC and electric
services.
• The ceili ngs, will be 14' high
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ATE,: 5/77/2013 I EFERENCE C-2623 N
C0 D E, C TYPE. PUBLIC No
CONSENT HEARING-
SUBJECT: Authorize a hive-Year Tax Abatement,Agreement with 5th Street Studios LLC, to
Redevelop an Existing Building Into an Establishment for Artisans and L,ilg,ht Fabrication
on Property Located, at 2817"west 5th Street in the Trinity Park Neighborhood
Empowerment Zone, (COUNCI,L DISTRICT 9
wow
RECOMMENDATION-'
It is recommended that the City Council authorize a five-year Tax Abatement Agreement with 5th
Street Studios, LL,C,l to redevelop an existing building into an establishment for artisans and light
fabrication on property located at 28117 West 5th Street in the Trinity Park Neighborhood
Empowerment Zone,, in accordance with the Neighborhood Empowerment Zone Tax Abatement
Policy and Basic, Incentives.
DISCUSS1111ON:
5th Street Studios LLC (Property Owner), is the owner of the property described as Lots 5 and 6,
,Block 16, Van, an,dt's ✓end addition, an Addition to the City of Fort Worth, Tarrant County, Texas,
according to the plat, recorded in Vollumue 106, Page 118, Plat Records,, Tarrant County Texas,, 2817
West 5th Street, Fort,Worth, Vexes. The property is located within the Trinity Park Neighborhood
Empowerment Zone r EZ .
The Property Owner plans to invest an estimated amount of$33 ,8 6µoo to redevelop an existing
building into an estabil,is,himent for artisans and light fabrication (Project). The blousing and Economic
Development Department reviewed the application and certified that the Project met the eligibility
criteria to receive a Municipal Property Tax Abatement. -r'he I EZ,fox Abatement Policy and Basic
Incentives includes a five-year Muni cipa,,l property Tax Abatement on the increased value of
improvements to the givalilfied owner of any new construction or rehabilitation within the NEZ.
Ulpion execution of the Agreement, the total assessed value of the improvements used for calculating
municipal property tax will be frozen for e period of five years starting January 2014 at the estimated
pre-improvement value as defined i by the Tarrant Appraisal District TAD in April 2013 for the
property as follows*.
Fire-Improvement'TAD Value of Improvements 101124.00
Pre-Improvement Estimated Value of land 187 500.00
Total, Pre-Improvement Estimated Value 1973624.00
The Municipal Property Tax Abatement on the improved value of the Project;after construction is
estimated in the amount of$2,889.01 per year for a total in the amount of X14,445.05 over the five-
year period. However, this estimate may differ from thou 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 Tax Abatement Agreement may be assiigned 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 IL ISTRICT 9.
Page I of 2
F'ISCAL 11 N FOR MATION/C ERTI FI CATION:
The Financial Management Services Director certifies that this action will not increase the total
appropriations on City funds.
TO Fun d/Account/Cen ers FROM Fund/Account/Centers
Submitted for City�Lanqger'S Office bv: Fernando Costa (6122)
Orig,Dann g,Department Head: Jay Ch,apa, (5804)
Cynthia Garcia (8 187)
Additional Information Contact:, Sarah Odle (73 6)
XffACHMENTS
2817 West 5th Elevatlon.pdf
2817 West 5th St Ma
Current Eievation.pdf
Page 2 of 2
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