HomeMy WebLinkAboutContract 58963CITY SECRETARY r D
GONTRACTN O. \Jo5~3
TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A
NEIGHBORHOOD EMPOWERMENT ZONE
3700 South Freeway
This TAX ABATEMENT AGREEMENT ("Agreement") is entered into by and between the
CITY OF FORT WORTH, TEXAS (the "City"), a home rule municipal corporation organized under
the laws of the State of Texas and acting by and through David Cooke , its duly authorized City Manager,
and FOMUNDAM MBUH AND KATHERINE ZAMA MBUH AND NOAAK HEALTHCARE,
LLC , ("Owner") of property located at 3700 South Freeway, Block 27 , Lot 2,'/, Worth Heights
Addition, an addition to the City of Fort Worth, Tarrant County, Texas , accordin~o the Plat thereof
recorded in Volume 204-A, Pages 149-150 , Plat Records , Tarrant County . ~~ (15.5
The City Council of the City of Fort Worth ("City Council") hereby finds and the City and
Owner hereby agree that the following statements are true and correct and constitute the basis upon
which the City and Owner have entered into this Agreement:
A. On January 29, 2019, the Fort Worth City Council adopted Ordinance No. 23552
(the "Ordinance") establishing "Neighborhood Empowerment Reinvestment Zones No.lR
through 6R" City of Fort Worth, Texas (the "Zones") and adopted Resolution No. 5042 establishing
"Designation of the Neighborhood Empowerment Zone Areas One through Six " (the "NEZ").
B. Owner owns certain real property located entirely within Zone 6R and that is more
particularly described in Exhibit "1 ", attached hereto and hereby made a part of this Agreement
for all purposes (the "Premises").
C. Owner or its assigns plan to construct the Required Improvements , as defined in Section
1.1 of this Agreement, on the Premises (the "Project").
D. On November 29, 2022, Owner submitted an application for tax abatement to the
City concerning the Premises (the "Application"), attached hereto as Exhibit "2" and hereby made
a part of this Agreement for all purposes.
E. The contemplated use of the Premises , the Required Improvements and the terms of this
Agreement are consistent with encouraging development of the Zone in accordance with the
purposes for its creation and are in compliance with the NEZ Incentives , the Ordinance and other
applicable laws , ordinances, rules and regulations .
F. Written notice that the City intends to enter into this Agreement, along with a copy of
this Agreement, has been furnished in the manner prescribed by the Code to the presiding officers of the
governing bodies of each of the taxing units in which the Premises is located
NOW, THEREFORE, the City and Owner, for and in consideration of the terms and
conditions set forth herein, do hereby contract, covenant and agree as follows ~--_ _
OF ICiAl RECORD
CITY CRETARY
Page I ofl3 FT. WORTH, TX
NEZ Tax Abatement with FOMUNDAM MBUH AND KA TH E RINE z:x'l\'"'r~.-,.."'l1FE>
NOAAK HEALTHCARE, LLC
3700 South Freeway, Approved by M&C 23-0071, February 14, 2023
1. OWNER'S COVENANTS.
1.1. Real Property Improvements.
Owner shall construct, or cause to be constructed, on and within the Premises certain
improvements consisting of the new construction of a commercial building of approximately
1,625 total square feet for use as a medical office and having Construction Costs , excluding
land, upon completion of $364,899.00 including site development costs (collectively, the
"Required Improvements") but such Construction Costs shall be reduced by any construction
cost savings. The type , number and details of the Required Improvements are described in
Exhibit "3". After construction of the Required Improvements is complete Owner shall provide
a copy of the final construction invoices to City. The invoices shall then be attached and made
a part ofthis Agreement and shall be labeled Exhibit "4". Minor variations , and more substantial
variations if approved in writing by both of the parties to this Agreement, in the Required
Improvements from the description provided in Exhibit "3" shall not constitute an Event of
Default, as defined in Section 4.1 , provided that the conditions in the first sentence of this
Section 1.1 are met and the Required Improvements are used for the purposes and in the manner
described in Exhibit "3 ".
1.2. Construction Costs.
"Construction Costs" shall mean site development costs (including demolition and
environmental abatement), hard construction costs; contractor fees ; engineering fees ;
architectural fees; design and consulting fees; and development fee and permitting fees
expended by Owner directly in connection with construction of the Required Improvements.
The City recognizes that Owner will request bids and proposals from various contractors in
order to obtain the lowest reasonable price for the cost of the Required Improvements . In the
event that bids and proposals for the Required Improvements are below $364 ,899.00 in
Construction Costs for work substantially the same as that provided in Exhibit "3 " and
otherwise described in this Agreement, the City will meet with Owner to negotiate in good
faith an amendment to this Agreement so that Owner is not in default for its fai lure to expend
at least $364,899.00 in Construction Costs , with the understanding that the City 's staff will
recommend, but cannot guarantee, approval of such amendment by the City Council. The
final site plan shall be in substantially the same form as the site plan submitted and attached
as Exhibit "3". Minor variations , and more substantial variations if approved in writing by
both parties to this Agreement, in the Required Improvements from the description provided
in the Application for Tax Abatement shall not constitute an Event of Default, as defined in
Section 4 .1 , provided that the conditions in the first sentence of this Section 1.1 are met and
the Required Improvements are used for the purposes and in the manner described in Exhibit
"3 ".
1.3. Completion Date of Required Improvements.
Owner covenants to complete construction of all of the Required Improvements by
February 14 , 2025 , (the "Completion Deadline"). The abatement will automatically terminate
two years after Council approval if the Required Improvements are not complete. The Required
Improvements shall be deemed complete upon the issuance of a final certificate of occupancy
Page 2 of 13
NEZ Tax Abatement with FOMUNDAM MBUH AND KA THERINE ZAMA MBUH AND
NOAAK HEALTHCARE, LLC
3700 South Freeway, Approved by M&C 23-0071 , February 14 , 2023
for the Required Improvements by the Development Services Department. If the Owner fails to
expend at least Three Hundred Sixty-Four Thousand, Eight Hundred Ninety-Nine Dollars
($364,899.00) 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.
1.4. Use of Premises .
Owner covenants that the Required Improvements shall be constructed and the
Premises shall be continuously used as an event space , and in accordance with the description
of the Project set forth in the Exhibit "3". In addition, Owner covenants that throughout the
Term , the Required Improvements shall be operated and maintained for the purposes 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 in value of the Required Improvements over their values as determined by
TAD in February 2022 , and this amount is $0.00 :
One Hundred percent (100%) of the increase m 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 1.1 of this Agreement, except that such
minimum construction costs shall be reduced by construction cost savings, Owner shall
not be eligible to receive any Abatement under this Agreement.
2 .2. Increase in Value.
The abatement shall apply only to taxes on the increase in value of the Premises due
to construction of the Required Improvements and shall not apply to taxes on the land, nor
shall the abatement apply to mineral interests .
2.3. Abatement Limitation.
Notwithstanding anything that may be interpreted to the contrary in this Agreement,
Owner's Abatement in any given year shall be based on the increase in value of the Required
Page 3 of 13
NEZ Tax Abatement with FOMUNDAM MBUH AND KATHERINE ZAMA MBUH AND
NOAAK HEALTHCARE, LLC
3700 South Freeway, Approved by M&C 23-0071 , February 14 , 2023
Improvements over its value in November 2022 , up to a maximum of $547 ,348.50. In other
words , by way of example only, if the increase in value of the Required Improvements over its
Tarrant Appraisal District determined value in November 2022 , in a given year on the account
is $600,000.00, Owner's Abatement for that tax year shall be capped and calculated as if the
appraised value of the Required Improvements for that year had only been $547,348.50.
2.4. Protests Over Appraisals or Assessments.
Owner shall have the right to protest and contest any or all appraisals or assessments
of the Premises and /or improvements thereon.
2.5. Term.
The term of the Abatement (the "Term") shall begin on January 1 of the year following
the calendar year in which a final certificate of occupancy is issued for the Required
Improvements on all three buildings ("Beginning Date") and, unless sooner terminated as
herein provided, shall end on December 31 immediately preceding the fifth (5 th ) anniversary
of the Beginning Date.
2.6. Abatement Application Fee.
The City acknowledges receipt from Owner of the required Abatement application fee
of one half of one percent (.5%) of Project's estimated cost, not to exceed $2,000. The
application fee shall not be credited or refunded to any party for any reason.
3. RECORDS, AUDITS AND EVALUATION OF PROJECT.
3.1. Inspection of Premises.
Between the execution date of this Agreement and the last day of the Term
("Compliance Auditing Term"), at any time during normal office hours throughout the Term
and the year following the Term and following reasonable notice to Owner, the City shall have
and Owner shall provide access to the Premises in order for the City to inspect the Premises and
evaluate the Required Improvements to ensure compliance with the terms and conditions of this
Agreement. Owner shall cooperate fully with the City during any such inspection and/or
evaluation.
3.2. Audits .
The City shall have the right to audit 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.
Page 4 of 13
NEZ Tax Abatement with FOMUNDAM MBUH AND KA THERINE ZAMA MBUH AND
NOAAK HEALTHCARE, LLC
3700 South Freeway, Approved by M&C 23-0071 , February 14, 2023
3.3. Provision of Information.
On or before March 1 following the end of every year during the Compliance Auditing
Term 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. This information shall include , but not be limited
to , the number and dollar amounts of all construction contracts and subcontracts awarded on
the Project.
Owner must also provide documentation of compliance to Tarrant Appraisal District
(TAD) each year of the abatement by filling out and returning Tax Abatement Form 50-116
from the TAD website no later than April 30th for each year Owner is requesting tax
abatement.
Failure to provide all information within the control of Owner required by this Section 3.3
shall constitute an Event of Default, as defined in Section 4.1.
3.4. Determination of Compliance.
On or before August 1 of each year during the Compliance Auditing Term, the City
shall make a decision and rule on the actual annual percentage of Abatement available to
Owner for the following year of the Term and shall notify Owner of such decision and ruling.
The actual percentage of the Abatement granted for a given year of the Term is therefore based
upon Owner 's compliance with the terms and conditions of this Agreement during the
previous year of the Compliance Auditing Term.
4. EVENTS OF DEFAULT.
4.1. Defined.
Unless otherwise specified herein, Owner shall be in default of this Agreement if (i)
Owner fails to construct the Required Improvements as defined in Section 1.1.; (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 (iii) OWNER DOES NOT
COMPLY WITH CHAPTER 7 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 determines that an Event of Default has occurred, the
City shall provide a written notice to Owner that describes the nature of the Event of Default.
Owner shall have sixty (60) calendar days from the date of receipt of this written notice to fully
cure or have cured the Event of Default. If Owner reasonably believes that Owner will require
additional time to cure the Event of Default, Owner shall promptly notify the City in writing, in
which case (i) after advising the City Council in an open meeting of Owner 's efforts and intent
to cure , Owner shall have ninety (90) calendar days from the original date of receipt of the
Page 5 of 13
NEZ Tax Abatement with FOMUNDAM MBUH AND KA THERINE ZAMA MBUH AND
NOAAK HEALTHCARE, LLC
3700 South Freeway, Approved by M&C 23-0071, February 14, 2023
written notice , or (ii) if Owner reasonably believes that Owner will require more than ninety
(90) days to cure the Event of Default, after advising the City Council in an open meeting of
Owner 's efforts and intent to cure , such additional time , if any , as may be offered by the City
Council in its sole discretion.
4.3. Termination for Event of Default and Payment of Liquidated Damages.
If an Event of Default, which is defined in Section 4 .1 , has not been cured within the
time frame specifically allowed under Section 4.2, the City shall have the right to terminate this
Agreement immediately. Owner acknowledges and agrees that an uncured Event of Default
will (i) harm the City's economic development and redevelopment efforts on the Premises and
in the vicinity of the Premises; (ii) require unplanned and expensive additional 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. This amount may be recovered by the
City through adjustments made to Owner's ad valorem property tax appraisal by the appraisal
district that has jurisdiction over the Premises. Otherwise , this amount shall be due , owing and
paid to the City within sixty ( 60) days following the effective date of termination of this
Agreement. In the event that all or any portion of this amount is not paid to the City within sixty
(60) days following the effective date of termination of this Agreement , Owner shall also be
liable for all penalties and interest on any outstanding amount at the statutory rate for delinquent
taxes , as determined by the Code at the time of the payment of such penalties and interest.
Notwithstanding anything herein to the contrary, damages due under this paragraph shall be the
sole responsibility of Owner or its permitted assignee , as applicable.
4.4. Termination at Will.
If the City and Owner mutually determine that the development or use of the Premises
or the anticipated Required Improvements are no longer appropriate or feasible, or that a
higher or better use is preferable , the City and Owner may terminate this Agreement in a
written format that is signed by both parties. In this event, (i) if the Term has commenced,
the Term shall expire as of the effective date of the termination of this Agreement; (ii) there
shall be no recapture of any taxes previously abated; and (iii) neither party shall have any
further rights or obligations hereunder.
4.5. Sexually oriented Business & Liquor Stores or Package Stores.
a. Owner understands and agrees the City has the right to terminate this
agreement if the Project contains or will contain a sexually oriented business.
Page 6 of 13
NEZ Tax Abatement with FOMUNDAM MBUH AND KA THERINE ZAMA MBUH AND
NOAAK HEALTHCARE, LLC
3700 South Freeway, Approved by M&C 23-0071 , February 14, 2023
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 OF PREMISES.
Owner may assign this Agreement and all or any portion of the benefits provided hereunder
to FOMUNDAM MBUH AND KA THERINE ZAMA MBUH AND NOAAK HEALTHCARE,
LLC , or an Affiliate without the consent of the City, provided that (i) prior to or contemporaneously
with the effectiveness of such assignment, Owner provides the City with written notice of such
assignment, which notice shall include the name of the Affiliate and a contact name , address and
telephone number , and (ii) the Affiliate agrees in writing to assume all terms and conditions of Owner
under this Agreement. For purposes of this Agreement, an "Affiliate " means all entities, incorporated
or otherwise , under common control with Owner, controlled by Owner or controlling Owner. For
purposes of this definition , "control " means fifty percent (50%) or more of the ownership determined
by either value or vote. Owner may not otherwise assign this Agreement or any of the benefits
provided hereunder to another party without the 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 (ii) the
proposed assignee agrees in writing to assume all terms and conditions of Owner under this
Agreement. Any attempted assignment without the City Council's prior written consent shall
constitute grounds for termination of this Agreement and the Abatement granted hereunder following
ten (10) calendar days of receipt of written notice from the City to Owner.
6. NOTICES.
All written notices called for or required by this Agreement shall be addressed to the following ,
or such other party or address as either party designates in writing, by certified mail , postage prepaid ,
or by hand delivery:
City:
City of Fort Worth
Attn: City Manager
200 Texas Street
Fort Worth, TX 7 6102
and
Neighborhood Services Department
Attn: Director
200 Texas Street
Fort Worth , TX 76102
Owner:
FOMUNDAM MBUH AND KATHERINE ZAMA
MBUH AND NOAAK HEALTHCARE, LLC
7733 Bella Milano Dr.
Fort Worth , TX 76126
Page 7 of 13
NEZ Tax Abatement with FOMUNDAM MBUH AND KA THERINE ZAMA MBUH AND
NOAAK HEALTHCARE, LLC
3700 South Freeway, Approved by M&C 23-0071 , February 14 , 2023
..
'
7. MISCELLANEOUS.
7.1. Bonds.
The Required Improvements will not be financed by tax increment bonds. This
Agreement is subject to rights of holders of outstanding bonds of the City.
7.2. Conflicts of Interest.
Neither the Premises nor any of the Required Improvements covered by this
Agreement are owned or leased by any member of the City Council, any member of the City
Planning or Zoning Commission or any member of the governing body of any taxing units in
the Zone.
7.3. Conflicts Between Documents.
In the event of any conflict between the City 's zoning ordinances, or other City
ordinances or regulations , and this Agreement, such ordinances or regulations shall control.
In the event of any conflict between the body of this Agreement and Exhibit "3 ", the body of
this Agreement shall control. As of June 14 , 2022 , the City is unaware of any conflicts between
this Agreement and the City 's zoning ordinance or other ordinances or regulations.
7.4. Future Application.
A portion or all of the Premises and/or Required Improvements may be eligible for
complete or partial exemption from ad valorem taxes as a result of existing law or future
legislation. This Agreement shall not be construed as evidence that such exemptions do not
apply to the Premises and/or Required Improvements.
7.5. City Council Authorization.
This Agreement was authorized by the City Council through approval Mayor and
Council Communication No. 22-0457 on June 14 , 2022, which, among other things, authorized
the City Manager to execute this Agreement on behalf of the City.
7.6. Estoppel Certificate.
Any party hereto may request an estoppel certificate from another party hereto so long
as the certificate is requested in connection with a bona fide business purpose . The certificate ,
which if requested will be addressed to the Owner, shall include , but not necessarily be limited
to , statements that this Agreement is in full force and effect without default ( or if an Event of
Default exists , the nature of the Event of Default and curative action taken and/or necessary
to effect a cure), the remaining term of this Agreement, the levels and remaining term of the
Abatement in effect, and such other matters reasonably requested by the party or parties to
receive the certificates.
Page 8 of 13
N E Z Tax Abatement with FOMUNDAM MBUH AND KA THERINE ZAMA MBUH AND
NOAAK HE ALTHCARE, LLC
3700 South Freeway , Approved by M&C 23-0071 , February 14 , 2023
7.7. Owner Standing.
Owner shall be deemed a proper and necessary party in any litigation questioning or
challenging the validity of this Agreement or any of the underlying laws , ordinances ,
resolutions , or City Council actions authorizing this Agreement and Owner shall be entitled
to intervene in any such litigation.
7.8. Venue and Jurisdiction.
This Agreement shall be construed in accordance with the laws of the State of Texas
and applicable ordinances , rules , regulations , or policies of the City . Venue for any action
under this Agreement shall lie in the State District Court of Tarrant County, Texas . This
Agreement is performable in Tarrant County, Texas.
7.9 . Severability.
If any provision of this Agreement is held to be invalid, illegal, or unenforceable , the
validity , legality and enforceability of the remaining provisions shall not in any way be
affected or impaired.
7.10. Headings Not Controlling.
Headings and titles used in this Agreement are for reference purposes only and shall
not be deemed a part of this Agreement.
7.11. Entirety of Agreement.
This Agreement, including any exhibits attached hereto and any documents
incorporated herein by reference , contains the entire understanding and agreement between
the City and Owner, their assigns and successors in interest, as to the matters contained herein.
Any prior or contemporaneous oral or written agreement is hereby declared null and void to
the extent in conflict with any provision of this Agreement. This Agreement shall not be
amended unless executed in writing by both parties and approved by the City Council. This
Agreement may be executed in multiple counterparts, each of which shall be considered an
original , but all of which shall constitute one instrument.
(REMAINDER OF PAGE INTENTIONALLY BLANK)
Page 9 of 13
NEZ Tax Abatement with FOMUNDAM MBUH AND KATHERINE ZAMA MBUH AND
NOAAK HEALTHCARE, LLC
3700 South Freeway, Approved by M&C 23-0071, February 14, 2023
CITY OF FORT WORTH:
By:~~~
F emando Costa
APPROVED AS TO FORM AND LEGALITY:
B y:ef!'!{.I. ~ hnB. Strong
Sr. Assistan~omey
M & C: __ ~2~3-~0~07~1 ______ _
Page 10 of 13
FOMUNDAM MBUH AND
KA THERINE ZAMA MBUH AND
NOAAK HEALTHCARE, LLC
By~----
Name: Fomundam Mbuh
Title: Member
By: __ -"----V-:.~-=+-'"1-1------
Name: __c;;;,e:,:==~=~=~--
Title: -----------
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
NEZ Tax Abatement with FOMUNDAM MBUH AND KA THERINE ZAMA MBUH AND
NOAAK HEALTHCARE, LLC
3700 South Freeway, Approved by M&C 23-0071, February 14 , 2023
STATE OF TEXAS §
COUNTYOFTARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Fernando Costa,
Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation, known to me to
be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged
to me that the same was the act of the said CITY OF FORT WORTH , TEXAS, a municipal
corporation, that he was duly authorized to perform the same by appropriate resolution of the City
Council of the City of Fort Worth and that he executed the same as the act of the said City for the
purposes and consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND ~ ,2023. -/j~
==inandfor
the State of Texas
STATE OF TEXAS §
COUNTY OF TARRANT §
AND SEAL OF OFFICE this ~
,,,-:;.~•ti,,, EVONIA DANIELS lt i z0:. Notary Pub Ii~, State of Texas
~~---~.:~:c Comm . Expires 07-13-2025 -;.,~f~f:t~'~ Notary ID 126950030
day of
BEFORE ME, the undersigned authority, on this day personally appeared FOMUNDAM MBUH
AND KATHERINE ZAMA MBUH, Members ofNOAAK HEALTHCARE , LLC, known to me to
be the persons whose name is subscribed to the foregoing instrument, and acknowledged to me that
he executed the same for the purposes and consideration therein expressed, in the capacity therein
stated and as the act and deed of FOMUNDAM MBUH AND KATHERINE ZAMA MBUH for
NOAAK HEALTHCARE, LLC
~~~~~02~AND
Cc11J)---=: arylicinanor
The State of Texas
.:-'~~~t:it,-;. VIRGINIA R. VILLALOBOS
f f{*·{~1 Notary Public , State of Texas
~,;;· ..... ~..-~ Com m . Exp ires 12 -16-2026
',,t?.f, ,,,,,' Notary ID 134 10914 1
Exhibit 1: Property Description
AND SEAL OF OFFICE this lLo.-day of
Page 11 of 13
NEZ Tax Abatement with FOMUNDAM MBUH AND KA THERINE ZAMA MBUH AND
NOAAK HEALTHCARE, LLC
3700 South Freeway, Approved by M&C 23-0071, February 14 , 2023
. ' '
Exhibit 2:
Exhibit 3:
Exhibit 4:
Application: (NEZ) Incentives and Tax Abatement
Project description
Final Construction Invoices (to be attached after construction)
Page 12 of 13
NEZ Tax Abatement with FOMUNDAM MBUH AND KA THERINE ZAMA MBUH AND
NOAAK HEALTHCARE, LLC
3700 South Freeway, Approved by M&C 23 -0071 , February 14 , 2023
Exhibit 1
Property Description
3700 South Freeway, Block 27 , Lot 22 , Worth Heights Addition, an addition to the City of Fort
Worth, Tarrant County , Texas , according to the Plat thereofrecorded in Volume 204-A, Pages 149-
150 , Plat Records , Tarrant County.
Exhl/,ll l
/\pplil';1lio11/I N2~/J ✓D/5W
!'hone:
( ont:irt:
f It ,litl,•r,•110
l'h11nt·:
1ngl ramil\'
( 'ity of Forl \Vorl Ii
Neighhorhnod l~111powcrn1 .;11 /,rn1 (NF/) 1\ppli •atio11 l<ir l11crntiv ~
[_]
( 'ii\'
/ j 'mail ;
I M1/A" n,y\
F1n r
( F.111:iil:
N. I]
()111111 I ir1I lnchrnlrial
1,,µ-1~ l J,fo
1 1 v ,1 ·t:'ic @ l
Ii/>
( .>111 Ir, , J ,
□
C ommunity ;::icil1tie Mixed-Use
s ,)
"'t'l,·1111' hr 11,fri"·,I if r/11 • ,,,.,,;r, I 11,ltlu•\\ i, :1111/',/ 11, tJ tl1•,i~1111I,•,t hi,,,,,;, 11/ l""l"'''.J' (II<') 1111,!_1•011, 11roj,.•,·I co11,·i.1I,· of 111'11'
,·111/\ll 'fl<'!io11 Ill' ,:,·tl'l'illf' r1 •11111·11Ii,111 .1, ,,,,,,,.,n,,,i of I'll/Ir 1•mj1•1•I i, rr,I11in•,I 11rior lo N F/ 111111lic11Ii1111 rn/1111i1111/. ll'ri/tt'II rtllflro1•11/ fro/JI
the /[i,'lof'i 1111(/ < '11lt11 r,1/ I 11111/11111,J.. 1 ( ·,1111111i,.1io11 (I/('/,(_") 11111 II he 1111,1e ·/1e•,I to thl' Ni:.'/, 1111p/il'11tio11 . /'or 1111nlitJ111· or_fflrlh<'f
ill//l/'ll/11/itlll I 1//11'1'/'llill~ /1i,1<,ri1· /lfOj1 •1·/1, /lii-1111• (fJ///111 ·/ t/11• //('/,(.II/ (8 / 7) 11)}.,~/)l)/JI,
,.i _ 1 I 'j_, /_:,~_I I/ _ --------~----
I .<'!!:ti llc~niption: l\·11, ~ I 1,Jdrt•,,s , (
\ 'I II ,i ;.) I' ( k 2 I [i I ~' I (11
l.01 11/nck-
IL f C. H / o ,-/\ I 1 'I 1 rJ
A ilc/i ,;;;;; ---------
NO
on~trnction / .\ddition: □ lkmodel / llehah:
Total J'\cw S q. Ft. Total I>rvrlop111cnl Co~t:
For a s ingk f:11nil~ pro_icl't, will the NEZ crr(ilicd property he occupied hy
the propl'l't~ ownl'f' a~ :1 primar~· residence'!
YE S NO
□ JZ
YE
0
If~ 011 £l'll'l'tcd No, pll':\Sl' spcdfy if th is property will he sold to a homeowner as :1 primary residence or used as ren ta I
propc,·t~. ,"-ID
If your project is a Commercial or Mixed Use project, please list all specific uses that arc heing proposed: MA> le.At . D (+'.1.l.l:
Incentives
llo you wish to apply for a i\fonicipal l'ropert)' Tax alrntement for this project'?
YE ~ NO ~o
If th\'. above answer is yes. please contm:t the City of Port Worth Neighborhood Serl'ices Department at (S 17) '() __ 73 16 r
,·i it http://for1worth1exas.l!ov/11eitd1borhoodslNEZ/ for additional information . Tax Ahatcml'llts are proce ··cd arter ,'iEZ project
certification and mu s t go before the City Council l'or a vote. House Bill 31-13 look elfrc:t on eptcmher I. 2019, which
rcquir •~ al lea $( 30 days ad\'ance notice he given of the lax abatement . Dill' to compliance with HU JI-U, the minimum rime
10 proccs a lax abatement to he on the City Council agenda for vole is 12 to 1-1 weeks after the dale of certification.
Ary1lica111s re1111esli11g tax u/w1e111t'11I 111111• 11111 .rnlm1it for u h11iltli11g [Jermil 1111/il !he ulmlt'111e111 luu ht'en uppru1·1?tl hi· t/11? Ci11•
01111l'il 11111/ the app/ic1111/ 11111 ,1·i[!11etl II co11/ruct.
C ily of h1rt \\'orlll
Ncighhorlwod Lmpow ~nm·nl /.om: (NI.'../) 1\pplicalion fcir 111 -· ·111i cs
l·,S N<>
~~;· Y<lllll'wi~h IOI appl~· ~(JI' a n·il-aS(' nr NI S:t, l'lllicy eligihk Ci1\ lil'ns'! □ r;n
cc c . av 111 ,, k111nli11011 11 11<1 I lnmd l Jp / Op t•n s 1r11e111r . lil'n S 11 1a • he n ·h-n sc I liir q11 a li y ing pr,i jcc rs.
For. Zon ln Office U1e Ont
Acknowled ements ·
-_,
i,. I ,-
f,-..· I· JI"\ I 111H IL-1\land rh.11 Il l\ :l 1'1'ii rn 1io11 \\ill 1101 lw 1110 ,c :-.scd if iii \ i11 <'011111lc 1 · I .1 'l l'<' In pr mi ll' a 11 , :ulrlitlfln:d i 11lm111a1i1111
lnr 1klrl'l1 1i11i11 1! L'iigihilit y a, ll'qllt'. 1,·d hy rhe Cily. lf'lhr :11lditi1111n l i11fnrn1 a 1io11 is 11111 , 11h111 i11 ed wi 1hi11 Hl ola s, 1hc .1p pli ca1i11 11
wi ll lw ,k11 k d :111,I :q1pli ,•alil111 l1 ·L'\ pa id w ill 11n1 he rl'i mh11r ~<)d .
'·z t·',1 I hntlw l •1ti f\ 1h a 1 1111' i11l,H111nlio11 )'f°I Wided is lluc and a ' 111':\I C In lhc hc s1 ol 111 y kn o \ 1-d~c .
K.7. r, \11ind\\'l l l l tl'r 1hat,lld,111111rn1 ~a11di11lo1111alin11rcq11i1edh lh ,\ppli a1io11 <;1tl1111 ill r,l (IIJ' ~li s r i, all:1 1 hcd .
~_: )1~ I hnchy ad,nnwl dgl' lllill I ha, rend 1h,· NI ·/. lla 'l ic lt1 c ('t1liv c s 1111d 'I ,1x hnlc111c111 l'nli y ., hi li ,g 11 ern · 1h ·i;r p1 11r1 ,
,,1 1:,, nb :11 mrnl\. l'•c wai,· •rs and t·t lca t' ,,1 < 'i1y lic11 s. a11d ih 11 any Jc ll A l'I( 1 of 1hc lc rr11 ol iii N I-./ IJa ~i~ Ince nt ive
L'' t\'IISRl 'l'R\ SI , ~l t\11\lN s hnll 1,11,li\111 J.!ln\111<1 1111 rejt•t l1rn1 o l ;111 nppli nl ion r 1c r111in aliu n of in · nt,vcs nl rhc
~li s r·ti,,11 u 1"1h • ('ii,.
t ) · J.1111111 rsl:111d 1h ,11 1hc ap111n,11I 111 ke l\'ai\'l'l'S and nllt c , in T 11 1iv c,. hall 1101 l,c dc c11 1•d lo h • ,1rprnval 111 ny a . pc ·I (If
1hc I ,\,(l' t. I undcr~1 ;111d 111.11 I a m 1,·,111111 . ihk li1r nhlai11i11 • 1r,\11irl'd JH:1t11i1 , ,11 1<1 i11 pc ·lio n from lhc 'ily and in c11 •;11ring 1h
prni 1 i~ i., a ll'Ll in !In· Cl\l'll'l'l 11min • dis 11 il'I. Kz 'I h) I lllld c r~land lh:1 1 ii lh en· ;11c la:-:,·, dlll' Ill lk-11~ a •ain ,1 an y pmp t:rly J O\Vll i11 the ity o l Fo r! \ orllt I m11y nol be
e ligil k hr Nf-l, in ·e111i,·l',.
t1} 1; I hcrchy cnil~ lh:11 IIH' pru.it'L'I pla11 suhr11i11cd with !his applicat ion nwcl lhc N 8Z de ign •uidclinc n:q11irc1m:111 as
I i$1Cd j,l'J1l\\ nr m e I St r,1/1');1<' /'I an i.;11ide/i11 es /or th e /Jerr1 •hi/li i\la.rn11 11,•iJ:lils, Ooklm11/ ( 'rime rs fll/(I S1,i1 1 Si.r arf!C/.1' as
11 111/in d on the .Vrl ,r,·h1 in~. I llfllkrstand thnl ii' !he project pla11s dn 1101 mccl the se desi gn requirement , a ll permit ~•ill he
pul o n hn \d ric nding c rro:c 1iu11 . II' l cll()o s c 10 rclinq11i .h my NEZ ccrlilicatio11 instead ol mccling the de ign requirement s,
1,ay111c11l fnr ,111 fc ·s \\aivl'd by the C i1y up to !hat po i111 will be due immediatel y a11d the h11ilding permit will no l he i~.ued until
)'3~ 11i'cnt is made.
a . No me ta l huildi11 gs cxl'cp1 l'or industrial proje cts .
Ii .All new nn truction projccl s must con1ain 70 % ma s onry product
. •~ccp1i n 1 !he 111a omy product will be made al th e City 's discretion for design di s lric1 o verl ay (whi:rc a rplicahl c )
and approved planned deve\ormenl rrojects .
d . o mpliance wilh NEZ design guidelines for Council adopted NEZ Slrnlegic Plan (B erryhill/M ' On I !eigh t ,
akland Comer and Stop Six) is required for ccrlilicalion.
e. Allached garages for new single family ho mes may 11 0 1 e;,;tend more than ,J feel pa s ! 1he front building wall.
~-I understand 1ha1 I must pay all associated fe es al the 1imc o f' project aprli ca lion and/or per~i1 ubrn!ttal if I 1\i h ro
• ubmit pe rmits prior 10 Jc1cr111ina1ion of'NEZ eligibility . Thi s include s selling up a n escrow acc o unt 1 11h the 11 _. I under land
1h a1 omc permit may nol be iss ued whil e NEZ cligibilily is bcingestablish cd. E. a r I .'{\pp (sa1io n 1h a1 arc requ e ·1ing lu.x
A~~1cmcn1. ()~~ / / / L _.-: · ~ ~r't\w Ml\ N\B1J..tl . ~~~ • I ,, ,-v·JL Ju J f). ~;;..IJ
Printed am<: of l'rorcrt)' ·gnuturc of Propcrt' Oatc
()11 ·nl'r/Dcvc:lopcr Owncr/lkvclopcr
Re"t.bd 10/ll!/19 SO
' .. .
Exhibit 3
Project Description
New Construction of a commercial building
• 1,625 Total square feet
• 2 Story
• 2 Bedroom, 2 ½ Bath
• Brick Veneer and Hardi Board Exterior
CERTIFICATE OF INTERESTED PARTIES FORM 1295
1 of 1
Compl ete Nos. 1 -4 and 6 if there are intere sted parties . OFFICE USE ONLY
Complete No s. 1, 2, 3, 5, and 6 if th ere are no in teres ted parties . CERTIFICATION OF FILING
1 Name of business entity filing form, and the city, state and country of the business entity's place Certificate Number:
of business. 2022-965997
Noaak Healthcare Li e
fort wortn, T X Un ited States Date Filed :
2 Name of governmental entity or state agency that is a party to the contract for which the form is 12/20/2022
being filed.
City Of Fort Worth Date Acknowledged:
3 Provide t he identification number used by the governmental entity or state agency to track or identify the contract, and provide a
description of the services, goods , or other property to be provided under the co ntract.
NZ22-01588
Tax abatement
Nature of interest
4
Name of Interested Party City, State, Country (place of business) (check applicable)
Controlling Intermediary
Zam a Mbuh , Kath erine Forth Worth , T X U n ited States X
5 Check only if there is NO Interested Party. □
6 UNSWORN DECLARATION
My name is Katherine Zama Mbuh , and my date of birth is 04/14/1980
My address is 7733Bella Milano Dr Fort Worth '_IX_, 76126 USA
(street) (city) (state) (zip code) (co untry)
I declare un der penalty of perjury that the forego ing is true and correct.
Exec uted in Tarrant County , State of Texas 'on the 2Q_day of Decemb~-22.
f l~~> (month ) (year)
Sign ature of authorizec½.gent'6f contracting bu siness entity
(D ec laran t)
Forms provided by Te xas Eth ics Comm1ss1on www .eth1cs.state .t x.us V ers ion V3.5.1.3ac88bc0
• Details
File#:
Type:
Title:
Mover:
Result:
Agenda note:
Minutes note:
Action:
Action text:
• Votes (0:0)
0 records
Person Name
No records to display.
MC 230071 Version: 1
Award of Contract -Report of CM
(CD 9 / Future CD 11) Authorize Execution of a Five-Year Tax
Abatement Agreement with Fomundam Mbuh and Katherine Zama Mbuh and
NOAAK Healthcare, LLC for the Construction of a Medical Office Building of
Approximately 1,625 Square Feet and Having a Cost of at Least $364,899.00
on Property Located at 3700 South Freeway, in the Worth Heights
Neighborhood and within Neighborhood Empowerment Zone and
Reinvestment Zone Area Six
Elizabeth M Beck Seconder: Gyna M. Bivens
City Secretary Goodall advised that M&C 23-0071 was m
District 9.
Approved
Council Member Beck made a motion, seconded by Mayor Pro tern Bivens,
that M&C 23-0071 be approved. Motion passed 9-0.
2/27/2 3';' 9:19 AM M&C Review
CITY COUNCIL AGENDA
Create New From Th is M&C
DATE: 211412023 REFERENCE
NO.: M&C 23-0071 LOG NAME: 193700SOUTHFREEWAY
CODE: C TYPE: NON-PUBLIC NO CONSENT HEARING:
SUBJECT: (CD 5 / Future CD 11) Authorize Execution of a Five-Year Tax Abatement Agreement with
Fomundam Mbuh and Katherine Zama Mbuh and NOAAK Healthcare , LLC for
the Construction of a Medical Office Building of Approximately 1,625 Square Feet and
Having a Cost of at Least $364,899.00 on Property Located at 3700 South Freeway,
in the Worth Heights Neighborhood and within Neighborhood Empowerment Zone and
Reinvestment Zone Area Six
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the execution of a five-year Tax Abatement Agreement with
Fomundam Mbuh and Katherine Zama Mbuh and NOAAK Healthcare, LLC for the construction
of a medical office building of approx imately 1,625 square feet and having a cost of at least
$364,899.00 on property located at 3700 South Freeway, in the Worth Heights neighborhood
and within Neighborhood Empowerment Zone and Reinvestment Zone Area Si x ; and
2. Find that the terms of, and the property subject to, the Tax Abatement Agreement meet the
criteria and guidelines set forth in the Neighborhood Empowerment Zone Program Basic
Incentives and Tax Abatement Policy.
DISCUSSION:
Fomundam Mbuh and Katherine Zama Mbuh and NOAAK Healthcare, LLC, (Property Owners)
are the owners of the property described as Lot 22 , Block 27, Worth Heights Addition , an addition to
the City of Fort Worth , Tarrant County, Texas , according to the Plat recorded in Volume 204-A, Pages
149-150, Plat Records , Tarrant County, Texas , located at 3700 South Freeway, Fort Worth, Texas .
The property is located in the Worth Heights neighborhood and within Neighborhood Empowerment
Zone (NEZ) Area Six.
The Property Owners plan to invest an estimated amount of $364,899.00 to construct a medical office
building of approximately 1,625 square feet (Project). The Project will be used as the owner's medical
office.
The Neighborhood Services Department reviewed the application and certified that the Property
Owners and Project met the eligibility criteria to receive a NEZ Municipal Property Tax Abatement.
The NEZ Basic Incentives include a five-year Municipal Property Tax Abatement on the increased
value of improvements to the qualified owner of any new construction or rehabilitation within the NEZ.
Commercial tax abatements within the NEZ are capped at 150 percent of the capital investment.
Upon execution of the Tax Abatement Agreement (Agreement), the total assessed value of the
improvements used for calculating municipal property tax will be frozen for a period of five years
starting January 2024 at the estimated pre-improvement value as defined by the Tarrant Appraisal
District (TAD) in December 2022 for the property as follows :
Pre-Improvement TAD Value of Improvements $ 0.00
Pre-Improvement Estimated Value of Land $17,188 .00
Total Pre-Improvement Estimated Value $17,188.00
The municipal property tax on the improved value of the Project after construction is estimated in the
amount of $2 ,599 .91 per year, (364 ,899.00 x 0 .71250} for a total amount of $12,999.55 over the five-
year period . However, this estimate may differ from the actual tax abatement value, which will be
calculated based on the TAD appraised value of the property up to the capped value .
The Agreement may be assigned to an affiliate of the Property Owners without consent of the City
Council. If the property is sold to a new owner, other than an affiliate , the Agreement may be assigned
only with City Council approval and provided that the new owner meets all of the eligibility criteria as
stated in the NEZ Basic Incentives and Tax Abatement Policy.
This property is located in COUNCIL DISTRICT 9 AND FUTURE COUNCIL DISTRICT 11.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon final approval of the Tax Abatement Agreement, a loss of
an estimated $12,999.55 in property tax revenue may occur over the five year period. This reduction
in revenue will be incorporated into the long term financial forecast upon the Tax Abatement being
officially granted.
apps .cfwnet.org /council_packeUmc_review .asp?ID=30698&councildate=2 /14/2023
Official site of the City of Fort Worth, Texas
FoRTWORTH --..,..--
1/2
2/27/23 , Q:19AM
""TO
Fund Department Account Project
ID ID
FROM
Fund Department Account Project
ID ID
Submitted for City Manager's Office by_;_
Originating DeP-artment Head:
Additional Information Contact:
ATTACHMENTS
3700 S . F!YN. MaR for Council.Rdf (Public)
Program Activity Budget
Year
Program Activity Budget
Year
Fernando Costa (6122)
Victor Turner (8187)
Sarah Odle (7316)
Chad LaRoque (2661)
3700 S . F!YN. Ta x Abatement Calculation .Rdf (CFW Interna l)
Form 1295 Certificate 3700 South F~,Rdf (CFW Internal)
NZ22-01588 Final Plans.Rdf (Publ ic)
apps.cfwnet.org /co un cil _pa cket/mc_review.asp?ID=30698&counci ldate=2/14/2023
M&C Review
Reference# Amount
Chartfield 2
Reference# Amount
Chartfield 2
2/2