HomeMy WebLinkAboutContract 59526CITY SECRETARYS
fY)-1TRACT No. �5 c�Co
TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A
NEIGHBORHOOD EMPOWERMENT ZONE
3112 Forest Avenue
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 KI IANESIA HILL WASHINGTON, ("Owner") of property located at 3112 Forest Avenue, Block
14, Lots 5 & 6, Original Town of Handley, an Addition now in the City of Fort Worth, Tarrant County,
Texas, according to the Plat thereof recorded in Volume 40, Page 51, Plat Records, Tarrant County.
The City Council of the City of Fort Worth ("City Council') hereby finds and the City and
Owner hereby agree that the following statements are true and correct and constitute the 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.1R
through 611" 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 April 18, 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:
C FFICiAL RECORD
C-I' ` SECRETARY
FTo WORTH, TX
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NEZ Tax Abatement with KHANESIA HILL WASHINGTON
3112 Forest Avenue, Approved by M&C 23-0289, April 11, 2023
1. OWNER'S COVENANTS.
1.1. Real Propertv Improvements.
Owner shall construct, or cause to be constructed, on and within the Premises certain
improvements consisting of the remodel of a commercial building of approximately 2,592 total
square feet for use as office space, retail and a commercial kitchen and having Construction
Costs, excluding land, upon completion of $175,570.00 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 of this Agreement and shall be labeled Exhibit "4". Minor variations,
and more substantial variations if approved in writing by both of the parties to this Agreement,
in the Required Improvements from the description provided in 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 $175,570.00 in
Construction Costs for work substantially the same as that provided in Exhibit "3" and
otherwise described in this Agreement, the City will meet with Owner to negotiate in good
faith an amendment to this Agreement so that Owner is not in default for its failure to expend
at least $175,570.00 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
"Y5
1.3. Completion Date of Required Improvements.
Owner covenants to complete construction of all of the Required Improvements by April
11, 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
for the Required Improvements by the Development Services Department. If the Owner fails to
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3112 Forest Avenue, Approved by M&C 23-0289, April 11, 2023
expend at least One Hundred Seventy -Five Thousand, Five Hundred Seventy Dollars
($175,570.00) 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 office, retail space and a commercial kitchen, 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 March 2023, and this amount is $148,000.00:
One Hundred percent (100%) of the increase in value from the
construction of the Required Improvements.
If the square footage requirement and the appraised value of the 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
Improvements over its value in March 2023, up to a maximum of $263,355.00. In other words,
by way of example only, if the increase in value of the Required Improvements over its Tarrant
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NEZ Tax Abatement with KHANESIA HILL WASHINGTON
3112 Forest Avenue, Approved by M&C 23-0289, April 11, 2023
Appraisal District determined value in March 2023, in a given year on the account is
$275,000.00, 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 $263,355.00.
2.4. Protests Over Appraisals or Assessments.
Owner shall have the right to protest and contest any or all appraisals or assessments
of the Premises and/or improvements thereon.
2.5. Term.
The term of the Abatement (the "Term") shall begin on January 1 of the year 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 (5t') 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.
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3112 Forest Avenue, Approved by M&C 23-0289, April 11, 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. L; (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
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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 Pavment 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 hasjurisdiction 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.
b. Owner understands and agrees that the City has the right to terminate this
agreement as determined in City's sole discretion if the Project contains or will contain a
liquor store or package store.
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3112 Forest Avenue, Approved by M&C 23-0289, April 11, 2023
5. EFFECT OF SALE OF PREMISES.
Owner may assign this Agreement and all or any portion of the benefits provided hereunder
to KHANESIA HILL WASHINGTON, 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 76102
and
Neighborhood Services Department
Attn: Director
200 Texas Street
Fort Worth, TX 76102
7. MISCELLANEOUS.
7.1. Bonds.
Owner:
Khanesia Hill Washington
3112 Forest Ave.
Fort Worth, Texas 76112
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.
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3112 Forest Avenue, Approved by M&C 23-0289, April 11, 2023
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. 23-0289 on April 11, 2023, which, among other things, authorized
the City Manager to execute this Agreement on behalf of the City.
7.6. Estoppel Certificate.
Any party hereto may request an estoppel certificate from another party hereto so long
as the certificate is requested in connection with a bona fide business purpose. The certificate,
which if requested will be addressed to the Owner, shall include, but not necessarily be limited
to, statements that this Agreement is in full force and effect without default (or if an Event of
Default exists, the nature of the Event of Default and curative action taken and/or necessary
to effect a cure), the remaining term of this Agreement, the levels and remaining term of the
Abatement in effect, and such other matters reasonably requested by the party or parties to
receive the certificates.
7.7. Owner Standing.
Owner shall be deemed a proper and necessary party in any litigation questioning or
challenging the validity of this Agreement or any of the underlying laws, ordinances,
resolutions, or City Council actions authorizing this Agreement and Owner shall be entitled
to intervene in any such litigation.
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3112 Forest Avenue, Approved by M&C 23-0289, April 11, 2023
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. Entiretv 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)
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NEZ Tax Abatement with KHANESIA HILL WASHINGTON
3112 Forest Avenue, Approved by M&C 23-0289, April 11, 2023
CITY OF FORT WORTH:
By:
Fernando Costa
Assistant City Manager
ATTEST:
By:
y Secretary
ette Goodall
APPROVED AS TO FORM AND LEGALITY:
By:g,An
Stronstan City Attorney
M & C: 23-0289
KHANESIA HILL WASHINGTON
Title:
t
0.
Hill Washington
O11ICIA1 RECORD
CITY SECRETARY
FT. WORTH, TX
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NEZ Tax Abatement with KHANESIA HILL WASHINGTON
3112 Forest Avenue, Approved by M&C 23-0289, April 11, 2023
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Fernando Costa,
Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation, known to me to
be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged
to me that the same was the act of the said CITY OF FORT WORTH, TEXAS, a municipal
corporation, that he was duly authorized to perform the same by appropriate resolution of the City
Council of the City of Fort Worth and that he executed the same as the act of the said City for the
purposes and consideration therein expressed and in the capacity therein stated.
GIVEN ER MY HAND AND SEAL OF OFFICE this 12j��day of
2023.
r
Not ublic in and o
the State of Texas
STATE OF TEXAS §
COUNTY OF TARRANT §
SELENA ALA
Notary Public, State of Texas
=zi m, Expires 03-31-2024
%lF'oc's�}.` CoNotary ID 132422528
BEFORE ME, the undersigned authority, on this day personally appeared KHANESIA HILL
WASHINGTON, 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.
tGIVlj UNDER MY HAND
2023.
Nc in and Mr
The State of Texas
AND SEAL OF OFFICE this-LY day of
1>"Y °%, SARAH J ODLE
= Notary ID #6215320
r My Commission Expires
y�rf Cr S�`' November S, 2023
Page 11 of 13
NEZ Tax Abatement with KHANESIA HILL WASHINGTON
3112 Forest Avenue, Approved by M&C 23-0289, April 11, 2023
Exhibit 1: Property Description
Exhibit 2: Application: (NEZ) Incentives and Tax Abatement
Exhibit 3: Project description
Exhibit 4: Final Construction Invoices (to be attached after construction)
Page 12 of 13
NEZ Tax Abatement with KHANESIA HILL WASHINGTON
3112 Forest Avenue, Approved by M&C 23-0289, April 11, 2023
Exhibit 1
Property Description
3112 Forest Avenue, Block 14, Lots 5 & 6, Original Town of Handley, an Addition now in the
City of Fort Worth, Tarrant County, Texas, according to the Plat thereof recorded in Volume 40,
Page 51, Plat Records, Tarrant County.
FORT WORTH
Exhibit 2
Application# NZ22-00371
City of Fort Worth
Neighborhood Empowerment Zone (NEZ) Application for Incentives
Property
Owner/Developer
Hill Washington
Last
Address:
3112 Forest Ave
Street Address
Phone:
682-556-9878
Contact:
(If different)
Last
Phone:
Khanesia L
First 11 LI.
Fort Worth TX 76112
City State Zip
First
Email: Khanesia@hotmail.com
Email:
NEZ certifications are project and owner specific. Please describe your project: Rehabilitation of a ioo _v.ear
_ol d bui I di na t-n nrmmnte econnmi or devel opment and i mnrnve rmai.i ty of sprvi cec; for
residents within the area
Project Type
❑ ❑ ❑ ❑ ❑
Single Family Multi- Family Commercial Industrial Community Facilities Mixed -Use
*Please be advised if the project address is zonedas a designated historical property (HQ and yourproject consists of ne►v
construction or exterior renovations, approval ofyourproject is requiredprior to NEZ application submittal. Written approval from
the Historic and Cultural Landmarks Commission (HCLC) Hurst be attached to the NEZ application. For questions or further
information concerning !Historic projects, please contact the HCLC at (817) 392-8000*
Project Address: 3112 Forest Ave Fort Worth, TX 76112
Street Address
Legal Description: 5 & 6 14 Handley, Original Town
Lot Block Addition
YES NO YE NO
New Construction / Addition: ElV Remodel / Rehab: q ❑
Total New Sq. Ft. 2,592 Total Development Cost: $17 5 , 5 7 0
For a single family project, will the NEZ certified property be occupied by YES NO
the property owner as a primary residence? N/A ❑ ❑
If you selected No, please specify if this property will be sold to a homeowner as a primary residence or used as rental
property. N/A
If your project is a Commercial or Mixed Use project, please list all specific uses that are being proposed:
Micro flex office & retail spaces, commercial kitchen, mailing and printing
services, community services via non profit tenant/partner
YENO
Do you wish to apply for a Municipal: Property Tax abatement for this project? ryr ❑
If the above answer is yes, please contact the City of Fort Worth Neighborhood Services Departinent at (817) 392-7316 or
visit httt)://foitwoithtexas.izov/neiizhboi-hoods/NEZ/ for additional information, Tax Abatements are processed after NEZ project
certification and must go before the City Council for a vote. House Bill 3143 took effect on September 1, 2019, which
requires at least 30 days advance notice be given of the tax abatement. Due to compliance with HB 3143, the minimum time
to process a tax abatement to be on the City Council agenda for vote is 12 to 14 weeks after the date of certification.
Applicants reauestine tax abatement nnav not submit for a building permit until the abatement has been approved by the Citv
Council and the applicant has signed a contract.
Revised 10/16/19 SO
FORT WORTH.
--®
Application# NZ22-00371
City of Fort Worth
Neighborhood Empowerment Zone (NEZ) Application for Incentives
NO
YES
El
you wish to apply for a release of NEZ Policy eligible City liens?
Weed, Paving, Demolition and Board Up / Open Structure liens may be released for qualifying projects.
For Zoning• Only
YES NO
Will a Zoning Change application be necessary for this project? ❑
Current Zoning: I I V` Pr ipsed U e:
Signature of Zoning Staff: Date: �w�C
PLEASE INITIAL NEXT TO EACH STATEMENT
KHW_ I understand that my application will not be processed if it is incomplete. I agree to provide any additional information
for determining eligibility as requested by the City. If the additional information is not submitted within 30 days, the application
will be denied and application fees paid will not be reimbursed.
KHW— I hereby certify that the information provided is true and accurate to the best of my knowledge.
KHW_ I hereby certify that all documents and information required by the Application Submittal Checklist is attached.
KHW_ I hereby acknowledge that I have read the NEZ Basic Incentives and Tax Abatement Policy, which governs the granting
of tax abatements, fee waivers and release of City liens, and that any VIOLATION of the terms of the NEZ Basic Incentives
or MISREPRESENTATION shall constitute grounds for rejection of an application or termination of incentives at the
discretion of the City.
KHW I understand that the approval of fee waivers and other incentives shall not be deemed to be approval of any aspect of
the project. I understand that I am responsible for obtaining required permits and inspections from the City and in ensuring the
project is located in the correct zoning district.
KHW_ I understand that if there are taxes due or liens against any property I own in the City of Fort Worth I may not be
eligible for NEZ incentives.
KHW_ I hereby certify that the project plans submitted with this application meet the NEZ design guideline requirements as
listed below or meet Strategic Plan guidelines for the Berrv/aiRlMason Heights. Oakland Corners and Ston Six areas as
outlined on the NEZ webvaee. I understand that if the project plans do not meet these design requirements, all permits will be
put on hold pending correction. If I choose to relinquish my NEZ certification instead of meeting the design requirements,
payment for all fees waived by the City up to that point will be due immediately and the building permit will not be issued until
payment is made.
a. No metal buildings except for industrial projects.
b.All new construction projects must contain 70% masonry product
c. Exceptions to the masonry product will be made at the City's discretion for design district overlays (where applicable)
and approved planned development projects.
d.Compliance with NEZ design guidelines for Council adopted NEZ Strategic Plans (Berryhill/Mason Heights,
Oakland Corners and Stop Six) is required for certification.
e. Attached garages for new single family homes may not extend more than 4 feet past the front building wall.
KHW I understand that I must pay all associated fees at the time of project application and/or permit submittal if I wish to
submit permits prior to determination ofNEZ eligibility. This includes setting up an escrow account with the City. I understand
that some permits may not be issued while NEZ eligibility is being stablished. Example: Applications that are requesting Tax
Abatement,
Khanesia Hill Washington 2/1/2022
Printed Name of Property Srgn a of Property Date
Owner/Developer Owner/Developer
Revised 10116119 SO
FORT WORTH.
Application#
City of Fort Worth
Neighborhood Empowerment Zone (NEZ) Application for Incentives
Please submit your completed application in person to:
City of Fort Worth Planning and Development Department
200 Texas Street, Fort Worth, Texas 76102
To apply online please go to: htta:Hforhvorthtexas.Vov/neighborhoods/NEZ/apply
For more information on the NEZ Program Incentives, please visit our web site
at llttD://foilworthtexas.izov/neighborhoods/NEZ/ or contact our office at (817) 392-7744 or nez NS a,fortworthtexas.eov
For more information on Tax Abatements, see the above website or contact the
Neighborhood Services Department at (817) 392-7316.
Revised 10/16/19 s0
Exhibit 3
Proiect Description
Remodel of a commercial building
• 2,592 Total square feet
• 2 Story
• Repair Foundation, electrical, plumbing, flooring, windows, interior work and
exterior updates
. M&C Review Page 1 of 2
Official site of the City of Fort Worth, Texas
CITY COUNCIL AGENDA FORT II
Create New From This M&C
DATE: 4/11/2023 REFERENCE M&C 23-0289 LOG NAME: 19NEZ3112FORESTAVE
NO..
CODE: C TYPE: NOW PUBLIC NO
CONSENT HEARING:
SUBJECT: (CD 5 / Future CD 5) Authorize Execution of a Five -Year Tax Abatement Agreement with
Khanesia Hill Washington for the Rehabilitation of a Commercial Building for Use as
Office Space, Retail Space and Commercial Kitchen, with a Total of Approximately
2,592 Square Feet, Having a Cost of at Least $175,570.00 on Property Located at 3112
Forest Avenue in the Historic Handley Neighborhood and Neighborhood Empowerment
Zone and Reinvestment Zone Area Six
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the execution of a Five -Year Tax Abatement Agreement with Khanesia Hill
Washington for the rehabilitation of a commercial building for use as office space, retail
space and commercial kitchen, with a total of approximately 2,592 square feet, having a cost
of at least $175,570.00 on property located at 3112 Forest Avenue in the Historic Handley
neighborhood and Neighborhood Empowerment Zone and Reinvestment Zone Area Six; and
2. Find that the terms of, and the property subject to, the Tax Abatement Agreement meet the
criteria and guidelines set forth in Neighborhood Empowerment Zone Tax Abatement Policy
and Basic Incentives.
DISCUSSION:
Khanesia Hill Washington (Property Owner) is the owner of the property described as Block 14, Lots
5 and 6, Original Town of Handley, an Addition now in the City of Fort Worth, Tarrant County,
Texas according to the plat recorded in Volume 40, Page 51, Plat Records, Tarrant County, Texas at
3112 Forest Avenue, Fort Worth, Texas. The property is located within the Historic Handley
neighborhood and Neighborhood Empowerment Zone Area Six (NEZ).
The Property Owner plans to invest an estimated amount of $175,570.00 for the rehabilitation of a
commercial building with approximately 2,592 square feet total for use as office and retail space and
a commercial kitchen, (Project). The Neighborhood Services Department reviewed the application
and certified that the Property Owner and Project met the eligibility criteria to receive a NEZ Municipal
Property Tax Abatement. The NEZ Basic Incentives include a five-year Municipal Property Tax
Abatement on the increased value of improvements to the qualified owner of any new construction or
rehabilitation within the NEZ.
Upon execution of the Agreement, the total assessed value of the improvements used for calculating
municipal property tax will be frozen for a period of five years starting January 2024 at the estimated
pre -improvement value, as defined by the Tarrant Appraisal District (TAD) in March 2023, as follows:
Pre -Improvement TAD Value of
Improvements $148,000.00
Pre -Improvement Estimated Value of
Land $35,000.00
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=30917&councildate=4/11/2023 4/11/2023
M&C Review
Page 2 of 2
(Total Pre -Improvement Estimated
Value 4183,000.00
The municipal property tax on the improved value of the Project after completion is estimated to
be $1,250.94 per year for a total amount of $6,254.70 over the five-year period. However, this
estimate may differ from the actual tax abatement value, which will be calculated based on the
Tarrant Appraisal District appraised value of the property.
The Tax Abatement Agreement may be assigned to an affiliate of the property owner without the
consent of the City Council. If the property is sold to a new owner, other than an affiliate, the
Agreement may be assigned only with City Council approval and provided that the new owner meets
all of the eligibility criteria as stated in the NEZ Tax Abatement Policy and Basic Incentives.
This property is located in COUNCIL DISTRICT 5 / FUTURE COUNCIL DISTRICT 5.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon approval of the Tax Abatement Agreement, a loss of an
estimated $6,254.70 in property tax revenue may occur over the five-year period. This reduction in
revenue will be incorporated into the long term financial forecast upon the Tax Abatement being
officially granted.
TO
Fund Department Account Project Program Activity Budget Reference # Amount
I ID I I ID I I I Year (Chartfield 2)
FROM
Fund I Department Account I Project I Program Activity Budget Reference # Amount
ID ID Year I (Chartfield 2)
Submitted for Citv Manager's Office bv: Fernando Costa (6122)
Oriainatinci Department Head:
Additional Information Contact:
ATTACHMENTS
3112 Forest Ave Current Condition.pdf (Public)
3112 Forest Ave Map for Council.odf (Public)
3112 Forest Ave Proposed Redevelopment.odf (Public)
Tax Abatement Calculation Sheet.pdf (CFW Internal)
Victor Turner (8187)
Sarah Odle (7316)
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=30917&councildate=4/11/2O23 4/11/2023