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HomeMy WebLinkAboutContract 27980 CITY SECRETARY STATE OF TEXAS § CONTRACT NO. COUNTY OF TARRANT § TAX ABATEMENT AGREEMENT FOR P40FIRTY LOCATED IN A NEIGHBORHOOD EMPOWERMENT ZONE 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 Reid Rector, its duly authorized Assistant City Manager, and J. KLINE L.L.C., a Texas Limited Liability Company("Owner"), acting by and through Joe Kline, its duly authorized Manager. The City Council of the City of Fort Worth ("City Council") hereby finds and the City and Owner hereby agree that the following statements are true and correct and constitute the basis upon which the City and Owner have entered into this Agreement: A. Chapter 378 of the Texas Local Government Code allows a municipality to create a Neighborhood Empowerment Zone (NEZ) if the municipality determines that the creation of the zone would promote: a. The creation of affordable housing, including manufactured housing in the zone; b. An increase in economic development in the zone; c. An increase in the quality of social services, education, or public safety provided to residents of the zone;or d. The rehabilitation of affordable housing in the zone. B. Chapter 378 of the Texas Local Government Code provides that a municipality that creates a NEZ, may enter into agreements abating municipal property taxes on property in the zone. C. On July 31, 2001, the City adopted basic incentives for property owners who own property located in a NEZ, stating that the City elects to be eligible to participate in tax abatement and including guidelines and criteria governing tax abatement agreements entered into between the City and various third parties, titled "NEZ Basic Incentives" ("NEZ Incentives"), which is attached hereto as Exhibit "A" and hereby made a part of this Agreement for all purposes. D. The NEZ Incentives contains appropriate guidelines and criteria governing tax abatement agreements to be entered into by the City as contemplated by Chapter 312 of the Texas Tax Code, as amended (the "Code"). 0 L-,& A 1,9 �s W0, E. On July 23, 2002, the Fort Worth City Council adopted Ordinance No. (the "Ordinance") establishing "Neighborhood Empowerment Reinvestment Zone No. 3," City of Fort Worth, Texas(the "Zone"). F. Owner owns certain real property located entirely within the Zone and that is more particularly described in Exhibit "B", attached hereto and hereby made a part of this Agreement for all purposes (the "Premises"). G. Owner or its assigns plan to construct the Required Improvements, as defined in Section 1.1 of this Agreement, on the Premises to be used as an apartment complex(the "Project"). H. On May 8, 2002, Owner submitted an application for NEZ incentives and an application on May 31, 2002 for tax abatement to the City concerning the contemplated use of the Premises (the "Application"), attached hereto as Exhibit "C" and hereby made a part of this Agreement for all purposes. I. The City Council finds that 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 NEZ Incentives, the Resolution and other applicable laws, ordinances, rules and regulations. J. The City Council finds that the terms of this Agreement, and the Premises and Required Improvements, satisfy the eligibility criteria of the NEZ Incentives. K. Written notice that the City intends to enter into this Agreement, along with a copy of this Agreement, has been furnished in the manner prescribed by the Code to the presiding officers of the governing bodies of each of the taxing units in which the Premises is located. The City shall provide a copy of such notice to Owner before executing this Agreement. 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: L OWNER'S.COVENANTS. 1.1. Real PE211cl:!y Improvements. Owner shall construct, or cause to be constructed, on and within the Premises certain improvements consisting of a 252-unit multi-family apartment complex, (i) of at least 245,000 square feet in size, and (ii) having a construction cost upon completion of $ 14,360,000 including site development costs but such minimum construction costs shall be reduced by any construction cost savings (collectively, the "Required Improvements"). The type, preliminary site plan, conceptual elevation, number and location of the Required Improvements are described in ExJ0bW-_;±,tU1_:= all J IND 2 provide a copy of the final site plan to City once it is approved by the Department of Development and the parties agree that such final site plan shall be a part of this Agreement and shall be labeled Exhibit H. The final site plan shall be in substantially the same form as the preliminary site plan. Minor variations, and more substantial variations if approved in -writing by both of the parties to this Agreement, in the Required Improvements from the description provided in the Application for Tax Abatement shall not constitute an Event of Default, as defined in Section 4.1, provided that the conditions in the first sentence of this Section 1.1 are met and the Required Improvements are used for the purposes and in the manner described in Exhibit "D". 1.2. Completion Date of Required Improvements Owner covenants to substantially complete construction of all of the Required Improvements within two years from the issuance and receipt of the first building permit, unless delayed because of force majeure, in which case the two years shall be extended by the number of days comprising the specific force majeure. For purposes of this Agreement, force majeure shall mean an event beyond Owner's reasonable control, including, without limitation, delays caused by adverse weather, delays in receipt of any required permits or approvals from any governmental authority, or acts of God, fires, strikes, national disasters, wars, riots and material or labor restrictions and shortages as determined by the City of Fort Worth in its sole discretion, which shall not be unreasonably withheld, but shall not include construction delays caused due to purely financial matters, such as, without limitation, delays in the obtaining of adequate financing. 1.3. Use of Premises Owner covenants that the Required Improvements shall be constructed and the Premises shall be continuously used in accordance with the description of the Project set forth in the Exhibit "D". In addition, Owner covenants that throughout the Term, the Required Improvements shall be operated and maintained for the purposes set forth in this Agreement and in a manner that is consistent with the general purposes of encouraging development or redevelopment of the Zone. 1.4. Employment on Premises. Owner covenants that at least six (6) Full-time Jobs, shall be provided on the Premises at all times during the Compliance Auditing Term as defined in Section 2.6 of this Agreement. Of the six (6) full time jobs provided at the premises, three (3) of the positions shall be filled by residents of the City of Fort Worth, one (1) of these positions must be filled from residents who reside in the Central City of the City of Fort Worth. For purposes of this Agreement, "Full-time Jobs" shall mean jobs filled by one (1) individual for a period of not less than forty (40) hours per week, "Central City" is defined as the area within Loop 820 consisting of all Community Development Block Grant (CDBG)-eligible census block groups; and all state-designated enterprise zones; and all census block groups that are contiguous by 75 percent or more of their perimeter 3 ru F, ?U 9 tvf to CDBG-eligible block groups or enterprise zones (M&C G 12976, approved by City Council on August 1,2000). 1.5. Property Magagement Owner covenants that the multi-family complex shall be operated in accordance and in compliance with the Management Plan that is attached as Exhibit "E". 1.6. Apartment Inspection Owner understands that the Required Improvements will be subject to inspection by the City of Fort Worth. Owner covenants that the Required Improvements will be operated and maintained hi compliance with City of Fort Worth ordinances relating to buildings and apartments and shall pass all properly performed inspections by the City of Fort Worth. 1.7. Tenant Selection. Owner covenants that the multi-family complex shall be operated in accordance and in compliance with the Tenant Selection Plan that is attached as Exhibit "F'. 1.8. Landscaping. Owner shall landscape and maintain such landscape of the Required Improvements in accordance with the final site plan approved by the City of Fort Worth, unless material changes to such plan have been approved by both of the parties to this Agreement in writing. 2. AJDATF tMS AND CONDITI!QNS MENT AMOUNTS2 TEL_ Subject to and in accordance with this Agreement, the City hereby grants to Owner a real property tax abatement on the Premises, the Required Improvements, as specifically provided in this Section 2 ("Abatement"). "Abatement" of real property taxes only includes City of Fort Worth-imposed taxes and not taxes from other taxing entities. 2.1. Amount of Abatement, The actual amount of the Abatement granted under this Agreement shall be based upon the increase in value of the Premises, the Required Improvements, and the business personal property located thereon, excluding inventory and supplies, over their values on January 1, 2002 and this amount is $1,224,543.00, the year in which this Agreement was entered into. The Abatement shall range up to a maximum of hundred 11,1,0'a­1 I t ..........an.......... m­, as percent (100%) o _113 f the increased value annually and shall 1'. stated in 2.1.1. 2.1.2., 2.1.3., 11.4, 2.1.5 and 2.2. ........ 0 "V 4 The maximum percentage of Abatement available to Owner is as stated below. Owner shall be eligible for all Abatement under this Section 2.1 if Owner meets all the requirements set forth in Section 2.2. In addition, Owner may not offset a deficiency in one subsection by exceeding its commitment in another subsection. If the total construction costs of the Required Improvements are less than as provided in Section 1.1 of this Agreement, excepts that such minimum construction costs shall be reduced by construction cost savings, Owner will not be eligible to receive any Abatement under this Agreement. 2.1.1. Abotefflent Based on Aff oLd_able Housing Units in the Zone f r the first rive nears of the Abatement Term Owner shall receive one hundred percent (100%) Abatement of the increase in value of the Premises over its value on January 1, 2002, for the first five years of the abatement term so long as Owner is in compliance with Section 2.2.1. 2.1.2. Abatement Based on Construction, Empl2jee Commitment, Affordable Housing Units and Operation of the Required Improvements in the Zone for jear six of the Abatement Term. Owner shall receive up to eighty percent (80%) Abatement of the increase in value of the Premises over its value on January 1, 2002, for year six of the abatement term so long as Owner is in compliance with Section 2.2.2, 2.2.3, 2.2.4, 2.2.5, 2.2.6, 2.2.7, and 2.2.8. 2.1-3. Abatement flaled on Cons irugfigg, EMployee Commitment, Affordable Housing Units gnd Operation of the Required Improvements in the Zone for year seven of the Abatement Term. Owner shall receive up to sixty percent (60%) Abatement of the increase in value of the Premises over its value on January 1, 2002, for year seven of the abatement term so long as Owner is in compliance with Section 2.2.2, 2.2.3, 2.2.4, 2.2.5, 2.2.6, 2.2.7, and 2.2.8. 2.1.4. AbIltement Bas on C_oj1stEU&j ion, LELnployee ,CoMmitment, Affordable Housing Unils and Ogeratiog of the Regl1ired ImprojEmCnis, in ,lhe Zgne f gj: year eight of the Abstenignt Term Owner shall receive up to forty percent (40%) Abatement of the increase in value of the Premises over its value on January 1, 2002, for year eight of the, a ow W l abatement term so long as Owner is in compliance with Section 2.2.2, 2.2.3, 2.2.4, 2.2.5, 2.2.6, 2.2.7, and 2.2.8. 2.1.5. Abatement Based on Construction, Employee Commitment, Affordable Housing Units and Operation of the Reguired Improvements in the Zone for ve#r nine of the Abatement Term. Owner shall receive up to twenty percent (20%) Abatement of the increase in value, of the Premises over its value on January 1, 2002, for year nine of the abatement term so long as Owner is in compliance with Section 2.2.2, 2.2.3, 2.2.4, 2.2.5, 2.2.6, 2.2.7, and 2.2.8. 2.2. Compliance Determination 2.2.1 Abatement Based on Affordable Housing Units for years One through Five of the Abatement Term For Years one through five of the Abatement Term, Owner shall receive one hundred percent (100%) of the amount of the Abatement specified in Section 2.1.1 if Owner sets aside twenty percent (201/o) of total units or fifty(50) units for families with income at or below 80% of Area Family Median Income (AMFI) adjusted annually by the Housing and Urban Development Department (HUD) and the rent for the fifty (50) units should not exceed thirty percent (30%) of the families' total monthly income. Such 50 units shall consist of the following categories: twenty (20) one-bedroom units, twenty five (25) two-bedroom units and five (5) three-bedroom units. In no event shall Owner unreasonably deny an 80% of AMFI tenant's application. In the event that the set aside units fall below the 20% set aside, Owner shall make its best effort to bring the 20% set aside back into compliance within the time specified in Section 4. Determination of compliance with the fifty (50) unit set aside for families with income at or below 80% of median income requirement shall be based on Owner's occupancy data on August I of year one through five during the Compliance Auditing Term, as defined in Section 2.6. The maximum percentage of Abatement available to Owner under this Section 2.2.1 is one hundred percent (100%). Owner shall not be eligible for any of the one hundred percent (100%) Abatement under this Section 2.2.1 unless '0Aner meets the minimum requirements set forth in the paragraph above. 2.2.2 Abatement Based on Affordable Housing Units for years Six through Nine of the Abatement IgM For years six through nine of this Agreement, Owner shall receive a .4% (four tenths of a percent) of the amount of the Abatement specified in Section 2.1 for each unit Owner sets aside for families with income at or below 80% of Area R 1,11'NOW 6 ­:Ul Vlk 8,7 L S, Family Median Income (AMFI) adjusted annually by the Housing and Urban Development Department (HUD) and each unit's rent does not exceed thirty percent (30%) of the families' total monthly income. In no event shall the abatement percent amount established under this subsection exceed twenty percent (20%). Such units shall consist of the following categories: twenty (20) one-bedroom units, twenty five (25) two-bedroom units and five (5) three- bedroom units. In no event shall Owner unreasonably deny an 80% of AMFI tenant's application and in the event that the set aside units fall below the 20% set aside, Owner shall make its best effort to bring the 20% set aside back into compliance within the time specified in Section 4. Determination of compliance with the maximum fifty (50) unit set aside for families with income at or below 80% of median income requirement shall be based on Owner's occupancy data on August I of each year during the Compliance Auditing Term, as defined in Section 2.6. For example, if Owner only has twenty five (25) units set aside for families with income at or below 80% of the median income requirement, Owner shall receive one half of the Abatement available under this section or 10%. 2.2.3 Ahgement based-on Construe og lien es for Year Six through Nine of the Abatement Term For years six through nine of this Agreement, Owner shall receive a maximum of twenty percent (20%) of the amount of the Abatement specified in Section 2.1 if Owner spends at least twenty-five percent (25%) of the total construction costs of the Required Improvements (including, but not limited to, site development costs) with contractors that are Fort Worth Companies, "Fort Worth Companies"are defined in Exhibit G. Determination of compliance with the construction spending requirement of this section will be based on spending during the two years from the issuance of the first building permit as set forth in section 1.2. During year six through nine of this agreement, the maximum percentage of Abatement available to Owner under this Section 2.2.3 is twenty percent (20%). If Owner is unable to meet the minimum requirements set forth above, Owner shall receive a pro rata share of the amount of the abatement available under this subsection. For example, if Owner spends 12.5% of the total construction costs of the Required Improvements with contractors that are Fort Worth Companies, Owner shall receive one half of the Abatement available under this section or 10%. 2.2.4 Abatement,based on Area MADE CoLastrUition Exp ens Ss for Year Six through lain g of thr,Abatement Term For years six through nine of the Abatement Term, Owner shall receive a maximum of ten percent (10%) of the amount of the Abatement specified in Section 2.1 if Owner spends at least thirty percent (30%) of the total construction costs of the Required Improvements (including, but not limited to site development costs) with area M/W certified contractor(defined in Exhibit G), P 7 66, $40, WS INA, - Mal 'Pu Determination of compliance with the area MWBE construction spending requirement of this section will be based on spending during the two years from issuance of the first building permit as set forth in section 1.2. During year six through nine of this agreement, the maximum percentage of Abatement available to Owner under this Section 2.2.4 is ten percent (10%). If Owner is unable to meet the minimum requirements set forth above, Owner shall receive a pro rata share of the amount of the abatement available under this subsection. For example, if Owner spends 15% of the total construction costs of the Required Improvements with area MWBE contractors, Owner shall receive one half of the Abatement available under this section or 5%. 2.2.5 Abatement based on Fort Worth MWHE Construction Ex ens s for Year Six through Nine of the Abatement Term For years six through nine of the Abatement Term, Owner shall receive a maximum of ten percent (10%) of the amount of the Abatement specified in Section 2.1 if Owner spends at least thirty percent (30"/o) of the thirty percent of the MWBE construction costs of the Required Improvements set forth in Section 2.2.4 with Fort Worth M/WBE certified contractors (defined in Exhibit G). In addition, the thirty percent (30%) spent with Fort Worth MWBE certified contractors shall also count toward the Fort Worth Companies as described in Section 2.2.3. Determination of compliance with the Fort Worth WWBE construction spending requirement of this section will be based on spending during the two years from issuance of the first building permit as set forth in section 1.2. During years six through nine of this agreement, the maximum percentage of Abatement available to Owner under this Section 2.2.5 is ten percent (10%). If Owner is unable to meet the minimum requirements set forth above, Owner shall receive a pro rata share of the amount of the abatement available under this subsection. For example, if Owner spends 4.5% of the total construction costs of the Required Improvements with Fort Worth MWBE contractors, Owner shall receive one half of the Abatement available under this section or 5%. 2.2.6 Abatement Based upon City and Central City E!Mvlo-vment Commitments for Years Six through Nine of the Abatement Term For years six through nine of the Abatement Term, owner shall receive a six and sixty seven hundredths of a percent (6.67010) of the amount of the Abatement specified in Section 2.1 for each of the following if Owner (i) creates and maintains six (6) full time jobs on the Premises; (ii) three of six jobs created and maintained and filled by individuals residing within the City of Fort Worth; and (iii) of the three (3)jobs created and maintained for Fort Worth residents on the Premises, one (1) is filled by a Central City resident. Determination of compliance with the employment shall be based on Owner's employment on August I of year six through nine during the Compliance Auditing Term, as defined in Section 2.6. The maximum percentage of Abatement available to Owner under this Section 2.2.6 is twenty percent 41 K, zv- (20%). If Owner is unable to meet the minimum requirements set forth above, Owner shall receive a pro rata share of the amount of the abatement available under this subsection. For example, if Owner only complies with section(i) in the above paragraph, then Owner shall only qualify for one third of the Abatement available under this section or 6.67%. 2.2.7 Multifamily Complex Inspection for Years Six through Nine of the Abatement Term Owner shall receive a maximum of ten percent (10%) of the amount of the Abatement specified in Section 2.1. if the Required Improvements are operated and maintained in compliance with City of Fort Worth ordinances relating to buildings and apartments and shall pass all inspection by the City of Fort Worth during year six through nine of the Abatement Term. The City shall provide Owner with the ordinances and inspection criteria upon executing this Agreement, however, Owner shall be responsible for obtaining all amendments and revisions to any ordinance and inspection criteria. Determination of compliance shall be determined by the City of Fort Worth Inspection team. The maximum percentage of Abatement available to Owner under this Section 2.2.7 is ten percent (10%) for Years six through nine of the Abatement Term. Owner shall not be eligible for any of the ten percent (10%) Abatement under this Section 2.2.4 unless Owner meets the minimum requirements set forth in the paragraph above. 2.2.8 Operation of Reguired, Improvements for Years Six through Nine of the Abatement Term Owner shall receive a maximum of two and one half percent (2.5%) Abatement of the Amount specified in Section 2.1 in years six through nine of the abatement term upon satisfaction of each of the following conditions: (i) Owner operates the Required Improvements in compliance with the Tenant Selection Plan (ii) Owner operates the Required Improvements in compliance with the Management Plan, (iii) Owner landscapes the Required Improvements in compliance with the ordinances of the City of Fort Worth and the final site plan and maintains such landscaping; and (iv) Owner uses the Required Improvements continuously in accordance with the description of the Project set forth in Exhibit Determination of compliance with the requirements of operation shall be based on Owner's data on August I of years six through nine of the Abatement Tenn during the Compliance Auditing Term, as defined in Section 2.6. The maximum percentage of Abatement available to Owner under this Section 2.2.8 is ten percent (10%). If Owner is unable to meet the minimum requirements set forth above, Owner shall receive a pro rata share of the amount of the abatement available under this subsection. For example, if Owner only n=z- "'I n7- AI At 9 complies with section (i) and (ii) of the above paragraph, then Owner shall only qualify for one half of the Abatement available under this section or 5%. 2.3 Effect of Failure to Meet Certgin Section 2,2 Commitments. Except where specifically identified as an Event of Default, the failure to meet any or all of the operational commitments on the Premises and as set forth in Section 2.2.1 shall result only in the cancellation of the 100% abatement available to owner for the year not in compliance and shall not constitute an Event of Default as defined in Section 4.1 of this Agreement or trigger the cure periods and remedies set forth in that Section 4. Except where specifically identified as an Event of Default, the failure to meet any or all of the operational commitments on the Premises as set forth in Section 2.2.2, 2.2.3, 2.2.4, 2.2.5, 2.2.6, 2.2.7, and 2.2.8 shall result only in the reduction of the specific abatement available to owner for the specific subsection in which the requirements set forth in such subsection which have not been met for the specific year and shall not constitute an Event of Default as defined in Section 4.1 of this Agreement or trigger the cure periods and remedies set forth in that Section 4. 2.4. Abatement Limitation Notwithstanding anything that may be interpreted to the contrary in this Agreement, Owner's Abatement in any given year shall be based on the increase in value of the Premises over its value on January 1, 2002, including the Required Improvements, up to a maximum of $35,000,000. In other words, by way of example only, if the increase in value of the Premises over its value on January 1, 2002, including the Required Improvements, in a given year is $40,000,000, Owner's Abatement for that tax year shall be capped and calculated as if the increase in value of the Premises for that year had only been$35,000,000. 2.5. Protests Over Agorlisals or Assessments. Owner shall have the right to protest and contest any or all appraisals or assessments of the Premises and/or improvements thereon. 2.6 Tee T January I of the year following the year in which a final certificate of occupancy is issued for the Required Improvements will constitute the start of auditing for compliance of this Agreement ("Compliance Auditing Term"). Taxes will be abated during the first year of the Compliance Auditing Tenn. The term of the Abatement benefit (the "Term") shall begin on January I of the year following the year that the Compliance Auditing 'rerm begins (the "Abatement Wail, rg----D*-teV- apt as 0 provided in Section 2.4 or unless sooner terminated as herein provided, the Term and the Compliance Auditing Term shall end on the December 31 st immediately preceding their respective tenth(10th) anniversaries. Information for the last Compliance Auditing Term shall be submitted as indicated in Section 3.3. 2.7. 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 $1,000. If Owner diligently begins or causes to begin construction of the Required Improvements on the Premises within one (1) year from the date of the Application, this application fee shall be credited or refunded in full to Owner upon issuance of the first Certificate of Occupancy. 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 at any time during normal office hours throughout the Tenn 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. 3.3. Provision of Information. On or before February I 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 following: 51 ai _2 3.3.1. The number and dollar amounts of all construction contracts and subcontracts awarded on the Project, specifying the number and dollar amounts spent with contractors that are Fort Worth Companies, M/WBE certified contractors and M/WBE certified contractors that are Fort Worth Companies; and 3.3.2. The total number of Owner's employees who worked on the Premises in Full-time Jobs; the number of such employees who resided within the corporate limits of the City and the number of such employees who resided in Central City areas, all as of August I of the preceding calendar year, together with reasonable documentation regarding the residency of such employees; and 3.3.3. The number of units occupied by families with income at or below 80%of (AMFI) and the rents for those units. 3.3.4. Inspection Reports by the City of Fort Worth 3.3.5. Maintenance of Landscaping 3.3.6. Owner shall supply any additional information reasonably requested by the City in its evaluation of Owner's compliance with each of the terms and conditions of this Agreement. Failure to provide all information within the control of Owner required by this Section 3.3 shall constitute an Event of Default, as defined in Section d.1. 3.4. Determinations of Compliance. 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. Notwithstanding the foregoing, at such time as the City makes a decision and ruling as to whether Owner is entitled to the percentage of Abatement available pursuant to Section 2.1.2, Owner shall be entitled to the benefits of such Abatement throughout the remainder of the Term without the necessity of providing any additional information and documentation or obtaining any additional decision or ruling from the City and without regard to any decision or ruling by the City with respect to the Abatement components referred to in Sections 2.1.1 and 2.1.2. 4. EYF.NjL� QF IIEFAILT. KK R i-n 'I'JIb IV-1. 12 1,i 999 _2 4.1. Defined Unless otherwise specified herein, Owner shall be in default of this Agreement if (i) fails to construct the Required Improvements as defined in Section 1.1 or (ii) ad valorem real property taxes with respect to the Premises or the Project, or its ad valorem taxes with respect to the tangible personal property located on the Premises, become delinquent and Owner does not timely and properly follow the legal procedures for protest and/or contest of any such ad valorem real property or tangible personal property taxes(collectively, each an"Event of Default"). 4.2. Notice to Cure. Subject to Section 5, if the City determines that an Event of Default has occurred, the City shall provide a written notice to Owner that describes the nature of the Event of Default. Owner shall have ninety (90) calendar days from the date of receipt of this written notice to fully cure or have cured the Event of Default. If Owner reasonably believes that Owner will require additional time to cure the Event of Default, Owner shall promptly notify the City in writing, in which case (i) after advising the City Council in an open meeting of Owner's efforts and intent to cure, Owner shall have one hundred eighty (180) calendar days from the original date of receipt of the written notice, or(ii) if Owner reasonably believes that Owner will require more than one hundred eighty (180) days to cure the Event of Default, after advising the City Council in an open meeting of Owner's efforts and intent to cure, such additional time, if any, as may be offered by the City Council in its sole discretion. 4.3. Termination for Event of Default and Payment of Liquidated Damages. If an Event of Default 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 therefrom are speculative in nature and will be difficult or impossible to ascertain. Therefore, upon termination of this Agreement for any Event of Default, Owner shall 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 fora win he effective date of 13 u termination of this Agreement. In the event that all or any portion of this amount is not paid to the City within sixty (60) days following the effective date of termination of this Agreement, Owner shall also be liable for all penalties and interest on any outstanding amount at the statutory rate for delinquent taxes, as determined by the Code at the time of the payment of such penalties and interest (currently, Section 33.01 of the Code). 4.4. Termination at Will. If the City and Owner mutually determine that the development or use of the Premises or the anticipated Required Improvements are no longer appropriate or feasible, or that a higher or better use is preferable, the City and Owner may terminate this Agreement in a written format that is signed by both parties. In this event, (i) if the Term has commenced, the Term shall expire as of the effective date of the 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. 5. EFFECT OF SALE OF PREMISES. Except for an assignment to WP South Acquisitions, L.L.C., W.P. South Acquisitions L.L.C.'s affiliates or their first mortgagee which City Council hereby agrees to, the Abatement granted hereunder shall vest only in Owner and cannot be assigned to a new owner of all or any portion of the Premises and/or Required Improvements without the prior written consent of the City Council, which consent shall not be unreasonably withheld 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 purchaser agrees in writing to assume all terms and conditions of Owner under this Agreement. Owner may not otherwise assign, lease or convey any of its rights 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. For the purposes of this Section, "affiliate" shall mean (i) any entity in which at least 25% of the ownership consists of individuals, partnerships, trusts (or their individual partners or beneficiaries) or other entities included whether by legal title or beneficially, in the present ownership of Owner or W.P. South Acquisitions L.L.0 or (ii) any entity which has at least a fifty-one percent (5 1%) ownership interest in Owner or any entity in which Owner has at least a fifty-one percent (5 1%)ownership interest. is affiliates il'as defined above'i or its first mmg9jagg J. Kline L.L.C. shall have no further ditio u on assi ament to an other emit with the written consent of Cit Council J. Kline L.L.C. shall have 119 further duty or obligation 14 W 6. NOTICES. All written notices called for or required by this Agreement shall be addressed to the following, or such other party or address as either party designates in writing, by certified mail, postage prepaid, or by hand delivery: City: Owner: City of Fort Worth J. Kline L.L.C. Attn: City Manager Attn: Joe Kline 1000 Throckmorton 1305 W. Magnolia Ave. Suite E Fort Worth, TX 76102 Fort Worth, TX 76104 and and Housing Department WP South Acquisitions, LLC Attn: Jerome Walker Attn: Patrick Trask 1000 Throckmorton 5100 Westheimer, Suite 132 Fort Worth, TX 76102 Houston, TX 77056 and WP South Acquisitions, LLC Attn: Jerry Durkin 1110 Northchase Parkway, Suite 150 7. MISCELLANEOUS. Marietta, GA 30067 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. C 7.2. Conflicts of Interest. Neither the Premises nor any of the Required Improvements covered by this Agreement are owned or ]eased 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 Daume!!ts. In the event of any conflict between the City's zoning ordinances, or other City 9 ordinances or regulations, and this Agreement, such ordinances or regulations shall control. In the event of any conflict between the body of this Agreement and Exhibit "D", the body of this Agreement shall control. As of July 15, 2002, the City is unaware of any conflicts between this Agreement and the City's zoning ordinance or other ordinances or regulations. ' 15 -1`21 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 au orized by the City Council through approval Mayor and Council Communication No. on July 23, 2002, which, among other things, authorized the City Manager to execute this Agreement on behalf of the City. 7.6. Estoppel Certificate Any party hereto may request an estoppel certificate from another party hereto so long as the certificate is requested in connection with a bona fide business purpose. The certificate, which if requested will be addressed to the Owner, shall include, but not necessarily be limited to, statements that this Agreement is in full force and effect without default (or if an Event of Default exists, the nature of the Event of Default and curative action taken and/or necessary to effect a cure), the remaining term of this Agreement, the levels and remaining term of the Abatement in effect, and such other matters reasonably requested by the party or parties to receive the certificates. 7.7. Owner Standing. Owner shall be deemed a proper and necessary party in any litigation questioning or challenging the validity of this Agreement or any of the underlying laws, ordinances, resolutions or City Council actions authorizing this Agreement, and Owner shall be entitled to intervene in any such litigation. 7.8. Venue and Jurisdiction. This Agreement shall be construed in accordance with the laws of the State of Texas and applicable ordinances, rules, regulations or policies of the City. Venue for any action under this Agreement shall lie in the State District Court of Tarrant County, Texas. This Agreement is performable in Tarrant County, Texas 7-9. RgSordatiou. A certified copy of this Agreement in recordable fonn shall be recorded in the Deed Records of Tarrant County, Texas. 16 7.10. Styerabilitty, 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. 7.11. 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. 7.12. 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. EXECUTED this 11ftday of 2002, by the City of Fort Worth, Texas. EXECUTED this day of 2002, by J. Kline L.L.C. CITY OF FORT WORTH: J. KLINE L.L.C.: By: y: < Reid Rector Joe Kline Assistant City Manager Manager ATTEST: ATTEST: By By: 4 City S=fr,t`ary � M1 R M contract thorization a 4 17 of APPROVED AS TO FORM AND LEGALITY: By: Cy a arcia Assistant City Attorney M&C: STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Reid Rector, 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. N ER `GIV 7 MY HAND AND SEAL OF OFFICE this LZ7-qay of - 2002. Notary Public in and for LOIS 0, T HREATT the State of Texas Notary Public STATE OF TEXAS Notary's Printed Name MY Cmn UP 10/06/05 rN R P 5 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Joe Kline, Manager of J. Kline, L.L.C., a Texas limited liability company, known to me to be the person 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 J. Kline L.L.C. GIVEN UNDER MY HAND AND SEAL OF OFFICE this 71L day of 2002. Notary Public in and for LOIS O. THREATT the State of Texas NOWY PubUc STATE OF TEXAS OF MY COM.Exp. 10/06/()6 Notary's Printed Name 19 Exhibit A: NEZ Incentives Exhibit B: Property Description Exhibit C: Application: (NEZ) Incentives and Tax Abatement Exhibit D: Project description including kind, number and location of the proposed improvements. Exhibit E. Management Plan Exhibit F: Tenant Selection Plan Exhibit G: Area MIWBE certified contractors Exhibit H Final Site Plan 20 Exhibit"A" CITY OF FORT WORTH NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) BASIC INCENTIVES Adopted by the Fort Worth City Council on July 31, 2001 (M&C G-13208 R) Amended by the Fort Worth City Council on April 2, 2002 (M&C G-13580) 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 incentives, will promote affordable housing and economic development in the NEZ. NEZ incentives will not be granted after the NEZ expires as defined in the resolution designating the NEZ. For each NEZ, the City Council may approve additional terms and incentives as permitted by Chapter 378 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 policy shall be construed as an obligation by the City of Fort Worth to approve any tax abatement application. ii. DEFINITIONS, "Abatement-means the full or partial exemption from City of Fort Worth ad valorem taxes on eligible properties for a period of up to 10 years and an amount of up to 100% of the increase in appraised value (as reflected on the certified tax roll of the appropriate county appraisal district) resulting from improvements. Eligible properties must be located in the NEZ. "Base Value"is the value of the property, excluding land, as determined by the Tarrant County Appraisal District, 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. "Capital Investment" includes only real property improvements such as new facilities and structures, site improvements, facility expansion, and facility modernization. Capital Investment does NOT include land acquisition costs and/or any existing improvements, or-personal p�pp t (such as machinery, equipment, and/or supplies and inventory). --Ell., 4 UN Proposed Amendments July 23, 2002 Exhibit"A" "City of Fort Worth Tax Abatement Policy Statement"means the policy adopted by City Council on February 29, 2000. "CommerciallIndustrial Development Project" is a development project which proposes to 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. 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 portion 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 Business Enterprise {MBE)"and "Women Business Enterprise (WBE)"is a minority or woman owned business that has received certification as either a certified MBE or certified WBE by either the North Texas Regional Certification 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 more 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 multi-family residential living units on 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. "Reinvestment Zone"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 enterprise zone pursuant to the Texas Enterprise Zone Act, codified in Chapter 2303 of the Texas Government Code. Ill. MUNICIPAL PROPERTY TAX ABATEMENTS A. RESIDENTIAL PROPERTIES LOCATED IN A NEZ: FULL"), 5 YEARS L Proposed Amendments July 2 3, 2002 2 Exhibit "A" 1. For residential property purchased before NEZ designation, a homeowner shall be eligible to apply for a tax abatement by meeting the following: 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 heirship, or a probated will, and shall show proof of primary residence by homestead exemption; and b. Homeowner must perform Eligible Rehabilitation on the property after NEZ designation equal to or in excess of 30% of the Base Value of the property; and c. 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. Property is newly constructed or rehabilitated after the date of final NEZ designation; and b. Property is owner-occupied and is the primary residence 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; and c. For rehabilitated property, Eligible Rehabilitation costs on the property shall be equal to or in excess of 30% of the Base Value of the property. The seller or owner shall provide the City information to support rehabilitation costs; and d. Property is not in a tax-delinquent status when the abatement application is submitted; and e. Property is in conformance with the City of Fort Worth Zoning Ordinance. 3. For investor owned single family property, an investor shall be eligible to apply for a tax abatement by meeting the following: a. Property is newly constructed or rehabilitated by the investor after NEZ designation; and b. For rehabilitated property, Eligible Rehabilitation costs on the property shall be equal to or in excess of 30% of the Base Value of the property; and c. Property is not in a tax-delinquent status when the abatement application is submitted; and d. Property is in conformance with the City of Fort Worth Zoning Ordinance. B. MULTI-FAMILY DEVELOPMENT PROJECTS LOCATED IN A NEZ 1. Full Abatement for 5 years. 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 of Housing and Urban Development) to persons with incomes at or below eighty percent (80%) of area median income based on family size and such units- shat be 4 or persons at or below 80% of the median income 4s,',",'A by, S. J,S�11_'_"­'z�; Proposed Amendments July 23, 2002 3 ­%w 7iA Exhibit"A" Department of Housing and Urban Development. City Council may waive or reduce the 20% affordability requirement on a case-by-case basis; 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 property must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property. 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. 2. 1%-100% Abatement of City Ad Valorem taxes up to 10 years If an applicant applies for a tax abatement agreement with a term of more than five years, this section shall apply. Abatements for multi-family development projects for up to 10 years are subject to City Council approval. The applicant may apply with the Housing Department for such abatement. Years 1 through 5 of the Tax Abatement Agreement Multi-family 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) to persons with incomes at or below eighty percent (80%) of area median income based on family size and such units shall be set aside for persons at or below 80% of the median income as defined by the U.S. Department of Housing and Urban Development. City Council may waive or reduce the 20% affordability requirement on a case-by-case basis; 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 property must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property. 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. Years 6 through 10 of the Tax Abatement Agreement Multi-family projects shall be eligible 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%) of the total units construct 44.......................vo "HOW be affordable (as defined by the U. S. Department n Proposed Amendments July 23, 20 02 4 15 Exhibit "A" Development) to persons with incomes at or below eighty percent (80%) of area median income based on family size and such units shall be set aside for persons at or below 80% of the median income as defined by the U.S. Department of Housing and Urban Development. City Council may waive or reduce the 20% affordability requirement on a case-by-case basis; and 1. 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 rehabilitation project, the property must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property. 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 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 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 inspection; 4. commit to hire an agreed upon percentage of Fort Worth residents 5. commit 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 NEZ 1. Full Abatement for 5 years. 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 minimum Capital Investment of $75,000; or b. For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property, or$75,000, whichever is greater. 2. 1%-100% Abatement of City Ad Valorem taxes up to 10 years If an applicant applies for a tax abatement agreement with aj* _mo re-than. v m years, this section shall apply. A irgv Proposed Amendments July 23, 2002 5 Exhibit "A" Abatements 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 Economic and Community Development Department for such abatement. Years 1 through 5 of the Tax Abatement Agreement Commercial, Industrial and Community Facilities 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: a. A commercial, industrial or a community facilities development project constructed after NEZ designation must have a minimum Capital Investment of $75,000; or b. For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property, or$75,000, whichever is greater. Years 6 through 10 of the Tax Abatement Agreement Commercial, Industrial and Community Facilities 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. A commercial, industrial or a community facilities development project constructed after NEZ designation must have a minimum Capital Investment of $75,000 and must meet the requirements of subsection (c) below ; or b. For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property, or $75,000, whichever is greater and meet the requirements 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 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. 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. landscaping. C. MIXED-USE DEVELOPMENT PROJECTS LOCATED IN A NEZ 1. Full Abatement for 5 years. In order to be eligible for a property tax abatement, upon completion, a newly constructed or rehabilitated mixed-use development project the following- t Proposed Amendments July 23, 2002 6 Exhibit"A" a. Residential uses in the project constitute 20 percent or more of the total Gross Floor Area of the project; 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; 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 NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property, or$200,000, whichever is greater. 2. 1%-100%Abatement of City Ad Valorem taxes up to 10 years If an applicant applies for a tax abatement agreement with a term of more than five years, this section shall apply. 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 Economic and Community 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: a. Residential uses in the project constitute 20 percent or more of the total Gross Floor Area of the project; 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; and c. A new mixed-use development project constructed after NEZ designation must have a minimum Capital Investment of $200,000; or for a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property, or $200,000, whichever is greater. Years 6 through 10 of the Tax Abatement Agreement Mixed 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 20 percent or more of the total Gross Floor Area of the project; and Proposed Amendments July 23, 2002 7 u. ;q "IR Mp Exhibit"A" 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; c. A new mixed-use development project constructed after NEZ designation must have a minimum Capital Investment of $200,000; or for a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property, 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 limited to: 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; 3. property inspection; 4. commit to hire an agreed upon percentage of Fort Worth residents 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 III will be offered to eligible projects. Eligible projects must meet all eligibility requirements specified in Section 111. 2. In order to be eligible to apply for a tax abatement, the property owner/developer must: a. Not be delinquent in paying property taxes for any property owned by the owner/developer ; and b. Not have any City of Fort Worth liens filed against any property owned by the applicant property owner/developer. "Liens" include, but are not limited to, weed liens, demolition liens, board-up/open structure liens and paving liens. 3. Properties under a contract for deed are not eligible for tax abatement. 4. Once a NEZ property owner of a residential property (including multi-family) in the NEZ satisfies the criteria set forth in Sections IIIA EA. and E.2. and applies for an abatement, a property owner must enter into a tax abatement agreement with the City of Fort Worth. The tax abatement agreement shall automatically terminate if the property subject to the tax abatement agreement is in violation of the City of Fort Worth's Minimum Building Standards Code and the owner is convicted of such violation. TM _VY Proposed Amendments July 23, 2002 8 go Exhibit"A" 5. 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 will assign the tax abatement agreement for the remaining term once the new owner submits an application. 6. A property owner/developer of a multifamily development, commercial, industrial, community facilities and mixed-use development project in the NEZ who desires a tax abatement under Sections 111.13, C or D must: a. Satisfy the criteria set forth in Sections 111.13, C or D, as applicable, and Sections III.E.1 E.2; and E3. and b. File an application with the Housing Department or the Economic and Community 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 shall provide that the agreement shall automatically terminate if the owner receives one conviction 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. F. APPLICATION FEE 1. The application fee for residential tax abatements governed under Section III.A is $25. 2. The application fee for multi-family, commercial, industrial, community facilities and mixed-use development projects governed under Sections 111.13, CA and D.1, is one- half of one percent (0.5%) of the proposed project's Capital Investment, not to exceed $1,000. The application fee will be refunded upon issuance of certificate of final occupancy and once the property owner enters into a tax abatement agreement with the City. Otherwise, the Application Fee shall not be credited or refunded to any party for any reason. IV. FEE WAIVERS A. ELIGIBLE RECIPIENTS/PROPERTIES 1. In order to be eligible to apply for fee waivers, the property owner/developer must a. Not be delinquent in paying property taxes for any property owned by the owner/developer or applicant; and b. Not have any City liens filed against any property owned by the applicant property owner/developer, including but not limited to, weed liens, demolition liens, board- up/open structure liens and paving liens. 2. Properties under a contract for deed are not eligible for development fee waivers. Proposed Amendments July 23, 2002 9 1 FA e''A Clam A Exhibit "A" 3. In order for Development Fees and/or Impact Fees to be waived for new construction or rehabilitation projects located in the NEZ, a property owner must submit an application to the City. Approval of the application and waiver of the fees shall not be deemed to be approval of any aspect of the proiect. Before construction, the applicant must ensure that the project is located in the correct zoning district. B. DEVELOPMENT FEES Once the Application for NEZ Incentives has been approved by the City, the following fees for services performed by the City of Fort Worth for projects in the NEZ are waived for new construction projects or rehabilitation projects that expend at least 30% of the Base Value of the property on Eligible Rehabilitation costs: 1. All building permit related fees (including Plans Review and Inspections) 2. Plat application fee (including concept plan, preliminary plat, final plat, short form replat) 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 Other development related fees not specified above will be considered for approval by City Council on a case-by-case basis. C. IMPACT FEE 1. Single family and multi-family residential development projects in the NEZ. Automatic 100%waiver of water and wastewater impact fees will be applied. 2. Commercial, industrial, mixed-use, or community facility development projects in the NEZ. a. Automatic 100% waiver of water and wastewater impact fees up to $55,000 or equivalent to two 6-inch meters for each commercial, industrial, mixed-use or community facility development project. b. If the project requests an impact fee waiver exceeding $55,000 or requesting a waiver for larger and/or more than two 6-inch meter, then City Council approval is required. Applicant may request the additional amount of impact fee waiver through the Housing Department. V. RELEASE OF CITY LIENS The following City liens may be released for eligible properties or projeobt""�Mt NEZ % Proposed Amendments July 2 3, 20102 10 Exhibit "A" AL 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-family, commercial, industrial, mixed-use, or community facility properties. 4. Developers constructing new multi-family, commercial, industrial, mixed-use or community facility development projects. B. DEMOLITION LIENS Builders or developers developing or rehabilitating a property are eligible to apply for release of demolition liens for up to $30,000. Release of demolition liens in excess of $30,000 is subject to City Council approval. C. BOARD-UP/OPEN STRUCTURE LIENS The following are eligible 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. D. PAVING LIENS The following are eligible to apply for release of paving 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-family, commercial, industrial, mixed-use, or community facility properties. 4. Developers constructing multi-family, commercial, industrial, mixed-use, or community facility projects. E. ELIGIBLE RECIPIENTSIPROPERTIES 1. In order to be eligible to apply for release of City liens, the property owner/developer: a. must not be delinquent in paying property taxes for any property owned by the owner/developer b. must not have been subject to a Building Standards Commission's Order of Demolition where the property was demolished within the last five (5) years; and c. must not have any City of Fort Worth liens filed against any other property owned by the applicant property owner/developer. "Liens'' includes, but is not limited to, weed liens, demolition liens, board-up/open structure liens and paving liens. 2. Properties under a contract for deed are not eligible ot- .�jjyj*ns. E�,,fing Proposed Amendments July 2 3, 2002 "'g-fil qi?212 Exhibit "A" VI. PROCEDURAL STEPS A. APPLICATION SUBMISSION 1. The applicant for NEZ incentives under Sections III.A, 13, C. D., IV, and V must complete and submit a City of Fort Worth "Application for NEZ Incentives" and pay the appropriate application fee to the Housing Department or the Economic Development Office, as applicable. 2. The applicant for incentives under Sections III.C.2 and D.2 must also complete and submit a City of Fort Worth "Application for Tax Abatement" and pay the appropriate application fee to the Economic Development Office. The application fee, review, evaluation and approval will be governed by City of Fort Worth Tax Abatement Policy Statement for Qualifying Development Projects. B. CERTIFICATIONS FOR APPLICATIONS UNDER SECTIONS III.A, B, C.11, D.1, IV, AND V 1. The Housing Department will review the application for accuracy and completeness. Once complete, Housing Department will certify eligibility of the application based on the criteria set forth in Section Ill. A, B, CA, D.1, IV, and V of this policy, as applicable. Once an application is certified, the Housing Department will inform appropriate departments administering the incentives about the certified application. An orientation meeting with City departments and the applicant may be scheduled. The departments include: a. Housing Department: property tax abatement for residential properties and multi- family development projects, release of City liens. b. Economic Development Office: property tax abatement for commercial, industrial, community facilities or mixed-use development projects. c. Development Department: development fee waivers. d. Water Department: impact fee waivers. e. Other appropriate departments, if applicable. 2. Once Development Department, Water Department, Economic Development Office, and/or other appropriate department receive a certified application from the Housing Department, each departmentloffice shall fill out a "Verification of NEZ Incentives for Certified NEZ Incentives Application" and return it to the Housing Department for record keeping and tracking. 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. .... ......... 4 OR-i `0 Proposed Amendments July 23, 2002 12 rN, Exhibit"A" b. For a completed and certified multi-family development project application for more than five years of tax abatement: (1) The Housing 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 based firms, and (ii) Minority and Women Owned Business Enterprises (M/WBEs). (d) Other items which may be negotiated by the City and the applicant. (2) Consideration by Council Committee. Based upon the outcome of the evaluation, Housing Department may present the application to the City Council's Economic Development Committee. Should the Housing Department present the application to the Economic Development Committee, the Committee will consider the application at an open meeting. The Committee may: (a) Approve the application. Staff will then incorporate the application into a tax abatement agreement which will be sent to the City Council with the Committee's recommendation to approve the agreement; or (b) Request modifications to the application. Housing Department staff will discuss the suggested modifications with the applicant and then, if the requested modifications are made, resubmit the modified application to the Committee for consideration; or (c) Deny the application. The applicant may appeal the Committee's finding by requesting the City Council to: (a) disregard the Committee's finding and (b) instruct city staff to incorporate the application into a tax abatement agreement for future consideration by the City Council. (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 All tax abatements approved by the City Council will become effective on January I of the year following the year in which a Certificate of Occupancy (CO) is issued for the qualifying development project (unless otherwise specified in 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. Proposed Amendments July 23, 2002 13 ;7 d f ca -w Exhibit"A" b. For a completed and certified application for more than five years of tax abatement: (1) The Economic Development Office 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 based firms, and (ii) Minority and Women owned Business Enterprises (M/WBEs). (d) Other items which may be negotiated by the City and the applicant. (2) Consideration by Council Committee Based upon the outcome of the evaluation, the Economic Development Office may present the application to the City Council's Economic Development Committee. Should the Economic Development Office present the application to the Economic Development Committee, the Committee will consider the application at an open meeting. The Committee may: (a) Approve the application. Staff will then incorporate the application into a tax abatement agreement which will be sent to the City Council with the Committee's recommendation to approve the agreement; or (b) Request modifications to the application. Economic Development Office staff will discuss the suggested modifications with the applicant and then, if the requested modifications are made, resubmit the modified application to the Committee for consideration; or (c) Deny the application. The applicant may appeal the Committee's finding by requesting the City Council to: (a) disregard the Committee's finding and (b) instruct city staff to incorporate the application into a tax abatement agreement for future consideration by the City Council. (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 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 in the tax abatement agreement). Unless otherwise specified 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 Development Department will review the certified applicant's application and grant appropriate incentives. f Ir Proposed Amendments July 23, 2002 14 Exhibit"A" b. For certified applications of development fee waivers that require Council approval, City staff will review the certified applicant's application and make appropriate recommendations to the City Council. 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 recommendations to the City Council. 5. Release of City Liens For certified applications of release of City liens, the Housing Department will release the appropriate liens. VII. OTHER RULES PERTAINING TO PROPERTY TAX ABATEMENT A. RECAPTURE If the terms of the tax abatement agreement are not met, the City Council has the right to cancel or amend the abatement agreement. In the event of cancellation, the recapture of abated taxes shall be limited to the year(s) in which the default occurred or continued. B. INSPECTION AND FINANCIAL VERIFICATION FOR MULTI-FAMILY, COMMERCIAL/ INDUSTRIAL, COMMUNITY FACILITIES AND MIXED-USE DEVELOPMENT PROJECTS The terms of the agreement shall include the City of Fort Worth's right to: (1) review and verify the applicant's financial 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. C. EVALUATION FOR MULTI-FAMILY, COMMERCIAL/ INDUSTRIAL, COMMUNITY FACILITIES AND MIXED-USE DEVELOPMENT PROJECTS Upon 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 tat 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 information and to provide the required certifloatioaq., above EV, A f, Proposed Amendments July 23, 2002 15 Exhibit"A" deadline shall result in cancellation of agreement and any taxes abated in the prior year being due and payable. D. EFFECT OF SALE, ASSIGNMENT OR LEASE OF PROPERTY 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. Any sale, assignment or lease of the property which is not permitted in the tax abatement agreement results in cancellation of the agreement and recapture of any taxes abated after the date on which an unspecified assignment occurred. Vill. OTHER INCENTIVES A. Plan reviews of proposed development projects in the NEZ will be expedited by the Development Department. B. The City Council may add the following incentives to a NEZ in the Resolution adopting the NEZ: 1. Municipal sales tax refund 2. Homebuyers assistance 3. Gap financing 4. Land assembly 5. Conveyance of tax foreclosure properties 6. Infrastructure improvements 7. Support for Low Income Housing Tax Credit (LIHTC) applications 8. Land use incentives and zoning/building code exemptions, e.g., mixed-use, density bonus, parking exemption 9. Tax Increment Financing (TIF) 10. Public Improvement District (PI D) 11. Tax-exempt bond financing 12. New Model Blocks 13. Loan guarantees 14. Equity investments 15. Other incentives that will effectuate the intent and purposes of NEZ. F 16 Proposed Amendments July 2 3, 2002 EXHIBIT"B" Legal Description Sections 1,2 and 3 and the North portion of Section 4, RIDGLEA APARTMENTS, an Addition to the City of Fort Worth, Tarrant County, Texas, according to plat recorded in Volume 388-D, Page 53, Deed Records of Tarrant County, Texas; being more fully described below. Section 4 North of Milburn Street BEGINNING at the northwest comer of that certain portion of sold Section 4 conveyed to the City of Fort Worth for an extension of Milburn Street by deed in Volume 5212, Page 962, of the Tarrant County Deed Records sold point being in the most westerly west line of sold Section 4 and the east line of Winthrop Avenue (50 foot wide right-of-way), from which point a 1/2" Iron rod found in place bears North 9 degrees East, 0.39 foot and said point of beginning being 173.49 feet South from the most westerly northwest comer of said Section 4 and the most westerly southwest comer of Section 2 in said Ridglea Apartments: THENCE with common lines between said Sections 4 and 2,the following courses and distances: East, 185.0 feet: North, 15.0 feet: East 15.0 feet: North 189.93 feet to a 518"iron rod found in place for comer: and, East 50.0 feet to the common east comer of said Sections 4 and 2 in the west line Of Bryant-Irvin Road(formerly Guilford Road-60 foot wide right-of-way): THENCE South with the east line of said Section 4 and sold west line of Bryant-Irvin Road, 349.21 feet to the northeast comer of said City of Fort Worth tract for Milburn Street, from which point a 1/2" iron rod found in place for the southeast comer of said tract for Milburn Street bears South 0 degrees, 13 minutes East,49.42 feet: THENCE westerly with the north line of said City tract for Milburn Street, the following courses and distances: North 88 degrees, 21 minutes West, 115.93 feet to the beginning of a curve whose center bears North I degree, 39 minutes East, 575.0 feet; westerly with said curve, a distance of 44.49 feet to the end of said curve: and North 83 degrees, 55 minutes West, 90.25 feet to the PLACE OF BEGINNING. 4 3 I L 2- VORT RTH EXHIBIT C Agenda Item # 7 Application No. _55.� C CITY OF FORT WORTH NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) PROGRAM PROJECT CERTIFICATION APPLICATION FORM C FOR DEVELOPMENT PROJECTS I. APPLICATION CHECK LIST Please submit the following documentation: ❑ A completed application form 0, A list of all properties owned by the applicant in Fort Worth ❑ Application fee— cashier's check or money order (For tax abatement applications only. For multifamily, commercial, industrial, commercial facilities, and mixed-use tax abatement applications: 0.5% of the total Capital Investment of the project, not to exceed $1,000.00; For single family tax abatement applications: $25 per house) ❑ Proof of ownership, such as a warranty deed, affidavit of heirship, or a probated will OR ❑ evidence of site control, such as option to buy Title abstract of the property (optional) For Rehabilitation Projects Only: ❑ A completed set of Rehabilitation (Remodel) Plan and a list of eligible rehabilitation (for applications of tax abatements and development fee waivers for rehab projects only) Eligible rehabilitation includes only physical improvements to real property. It does NOT include personal property such as furniture, appliances, equipment, and/or supplies. Total eligible rehabilitation costs shall equal to or exceed 30% of the Tarrant Appraisal District (TAD) appraised value of the structure during the year rehabilitation occurs. YOU MUST APPLY FOR TAX ABATEMENT BEFORE ANY BUILDING PERMITS ARE ISSUED FOR YOUR PROPERTY. APPLICANT I AGENT INFORMATION I. Applicant: J.Kline,L.L.C. 2. - Contact Person: Joe Kline 3. Address: 1305 W. Magnolia, Fort Worth TX 76104 Street City State Zip 4. Phone no.: 817-207-8080 5. Fax No.: 817-207-8081 6. Email: 7. Agent(if any) '*AT South Acquisitions, Inc. contact: Patrick S. Address: _5_IuOAAe�stheintcr, Ste.e­I25 Ilonston TX�7-�7A�Z4 77056 Street city State Zip 9. Phone no.: 713439-7900 10. Fax No.: 713-439-7901 11. Email- Pgt(*,,Woodpartners.com 7............ V If you need further information or clarification, please contact Chun-I 1"u fS, 1,7, 7 Bea Corti 1 for a at(817) 871-8036. tORT WORTH Agenda Item # 7 III. PROJECT ELIGIBILITY 1. Please list down the addresses and legal descriptions of the project and other properties your organization owns in Fort Worth. Attach metes and bounds description if no address or legal description is available. Attach an exhibit showing the location of the project. Table I PropeKt-v .: Ownership Address Zip Legal Description Code Subdivision Lot No. Block No. (Project Location) Sections 1, 2, 3 &North portion of 76116 Ridglea Apts. Section 4, Ridglea Apartments, an Addition of Fort Worth, Volume 388-D Page 53 (Please attach additional sheets of paper as needed.) 2. For each properties listed in Table 1, please check the boxes below to indicate if. • there are taxes due; or • there are City liens; or • you have been subject to a Building Standards Commission's Order of Demolition where the property was demolished within the last five years. Table 2 . Property Taxes and City Liens Address Property City Liens on Property Taxes 'Weed Board-up/Op I I Demolition Paving Order of Due Liens Stucture Liens Liens Liens Demolition F-1 f-1 ❑ ❑ ❑ 1:1 ❑ ❑ ❑ ❑ ❑ ❑ F-1 ❑ ❑ ❑ ❑ ❑ 1 ❑ I Ll (Please attach additional sheejts of paper as needed,) 3. Do you own other properties under other names? Z Yes 'L7 No If Yes,please specify Homestead 6720 Brants Lane, Fort Worth, TX 76116 4. Does the proposed project conform with City of Fort Worth Zoning? E Yes ❑No If no, what steps are being taken to insure compliance? f w 5. Project Type: ❑ Z U Co -,A. -�' NM Single Multi- Commercial Industrial -41j6d, se Familv Family h 2 WORTH Agenda Item # 7 6. Is this a new construction or rehab project? ®New Construction ❑ Rehab 7. Will the rehabilitation work" equal to at least 30% of the Tarrant Appraisal District (TAD} assessed value of the structure during the year rehabilitation occurred? F-1 Yes F-1 No *Only physical improvements to real property is eligible. DO NOT include personal property such as furniture, appliances, equipment, and/or supplies. 8. For a single family homeownership, mixed-use, or please fill out the number of residential units based on income range of owners or renters in the following table. Table 3 Number of Residential Units and Income Ran e of Owners or Renters um ts, >80% of AMFI** 202 80% At or below 80% of ANTI 20% 'A 5 **AMFI:Area Median Family Income. Please see attachment for income and housing payment guidelines. 9. For a multifamily project to be qualified for tax abatement, at least 20% of total units shall be affordable to families at or below 80% of AMFI. Check the box if you are requesting a waiver of this requirement. ❑ 10. For a commercial,industrial or community,facilities_ q get, indicate square footage of non-residential Mace. Commercial Industrial Community Facilities square feet square feet square feet PLEASE ANSWER QUESTIONS NO.10 TO NO. 12 ONLY IF YOU ARE APPLYING FOR A TAX ABATEMENT. 11. How much will be your Capital Investment*** on the project? Please use the following table to provide the details and amount of your Capital Investment. Table 4 Ca ital Investment of the Pr Total Ca ital Investment $16306,144 ***Capital Investment includes only real property improvements such as new facilities arid structures, site im prove rn-ents, facility, expansion, and facility modernization. Cap4ifto ;�' -�Stppvrat DOES NOT r,941N , include lard aca, sitior. costs and/or any existing unprovements, or 11 pet'S64"u. k as 41, t q I j ah machinery, eq uipment, and/or supplies or inveritoryr jug- q L 3 ORT WORTH Agenda Item # 7 i ' 12. Fora commercial,industrial, community facility or mixed use project, how many employees vNill the project generate? 13. For a mixed-use project,please indicate the percentage of all uses in the project in the following table. Table 5 Percentage of Uses in a Mixed-Use Project ta Residential � � ,. w. 249,206 100% Office Eatin Entertainment Retail sales Service IV. INCENTIVES 1.What incentives are you applying for? Municipal Property Tax Abatements ❑ 5 years ® More than 5 years Development Fee Waivers ® All building permit related fees (including Plans Review and Inspections) How much is your total development costs? $19,284,087 How much is the total square footage of your project? 260,000 square feet ® Plat application fee(including concept plan, preliminary plat, final plat, short form replat) ® Board of Adjustment application fee ® Demolition fee ® Structure moving fee Community Facilities Agreement(CFA) application fee Zoning application fee Z Street and utility easement Impact Fee Waivers Impact fee waiver Meter Size 6" How many meters? Release of City Liens E Weed liens Board up""Open structure liens Demolition liens Paving liens 4 fORTWORTH Agenda Item 9 7 V. ACKNOWLEDGMENTS I hereby certify that the information provided is true and accurate to the best of my knowledge. I hereby acknowledge that I have received a copy of N-TEZ Basic Incentives, which governs the granting of tax abatements, fee waivers and release of City liens, and that any VIOLATION of the terms of the NEZ Basic Incentives or MISREPRESENTATION shall constitute grounds for rejection of an application or termination of incentives at the discretion of the City. 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 in obtaining required permits and inspections from the City and in ensuring the project is located in the correct zoning district. I agree to provide any additional information for determining eligibility as requested by the City. J. Kline, L.L.0 (TYPED NAME) (AUTHORIZED SIGNATURE) (DATE) 'p �'W Electronic version of this form is available by request. Please call 817-871-7381 to request a copy. For more information on the NEZ Program,please visit our web site at www.fortworthgov.org/housing. For Office Use Only Application No. In which NEZV Conforrn with Toning? E] Yes El No Type? 0 SF 0' Multifamily Commercial E.- ] Industrial ECOrn-InUrlity facilities EJ Mixed-Use Construction completion date? F 1 -7 after NEZ Ownership El Yes ,,—] 3efioreNT 0 A' — No TAD, ACCOUnt No. Consistent with the NE7 plan? EJ Yes 0 No Meet affordability test? Yes El No Mininiuni Capital Investment? 0 Yes El Ni: Rehab at or higher than 30%? Yes 0 No Meet rnixed-use definition? Elves L-1 No Ta:x current (,,)n this property? Yes No Tax current on other properties? _J E Yes F .] Neu City liens on this property? ("ji-y hens on m1ter properties',' • Wcetl hens es I J 'N' Wee�l liens Yes E] No • Bozmi tlj)/operl herrs V,,:s No structi,ire ),'es E, No • Deniolition heris N es No, 0 Derrioliliorl liens "i"es _J No • Pa%,-ing hem .........., N '0 • Pa\ring liens Yes No _ • ('.)rcler of"cleynohtion s No - Ordcr ot'dernolition El Yes 0 No Y'e, Ccrfifie(i? 7 Cetlifie(] [w Dale cenificafi(,,Hn iSSUCV Yes [ No ................ ig" (6R"� Revised April 19,2002 • : it iii r + • • i } _! #`. a ' it`, i i i!! ff i iti ! ; f+t } }• ii iXx: : t i !E- 'it,i •i- t -; t. :t E t d f f: t f i j .t' ' • f } i' � # i. } # +# i •ti it i� � i' ii, i yt t }! 41 f : {i •: Ea t t r f.i :rt 1 /1 t- #it t ; •• :t .af f t ti. i t t I' t i f t�.• .• t / : i st t i i f t _ i f .•t ita}.t r:tt• it t! t a• ♦-t t• y ,. t} • t #.- t • N ##t: t tt*}}: i E I{i t+i+ti tr}' 4 3 t� :.i :-# + I ' '�u ip{t v t "eY G'' .x ar "&� r c^a': var •.,«n-rkS«t,f •k d"kq�t%�tP a Pw S,14 4'w� Ir w ap`:�A:., �� a�k' w.� r 1 �.. •n +� o it '� � ca..�4'�.1rF 6"� •Y' W "' e 46" l 'Fat+.� • °' �7 f " ,ir r ..� 'wi,• .yCti t; •.k,.� .Idf a��. !�. tik.,�.,�.�m�'ro"4 „or� "',�n�'t.:,:a�r-' ,^� ,,,rha a .,.ds, ^.�.x..x�Z;k,r,� ,•-«.�..w, �ar� �+ � y.; a ".ut t . s •itx. it tt .i - i } • s t it it s1 . JIUACA,ift i , • i' } t } .t ■ ■ x 4 aiilr i ■ it if er r •t . tF• � ♦.fii !• N f � ► i s..n• }#.1 .tai r.:.. t i x � : .'t - `a � �i:, i t+a ,'i t � � + i f ii f atit:i 'it i 'f': Mx . - ■ # l tt tit II F i - to-,4 ■ i .^t`� t fr i 'it.. t .rf � ■ . t t 1 i i i ixi ■ - s i f, ♦ f t •t � � i � i ^tit tai ♦' !' t Sat.. f^• � � • (-•i: is t : f t t.M f f! t !- + t}^ s t �; / f t.! ttitk : +rf ■ � i �E 4 t i i' t i n � � ; . • i i i e � . #«}•r ie• R.- fF i^tit i 3#•i � . f � f« mf t s+i.i •i . � f �Ii�. a #•a6 � � ii . 5 kORT WORTH Agenda Mean 9 7 ATTACHME ,'T LNCOME A 'D HOUSING PAYMENT GUIDELINES Family Size 80% of Median Income* Maximum Housing Payment Affordable for Individuals or Families at 80% of Median Income 1 $34,350 $859 2 $39,250 $981 3 $44,150 $1,104 4 $49,050 $1,226 5 $52,900 $1,323 6 $56,900 $1,423 7 $60,800 $1,520 8 $64,750 $1,619 *Source: 2002 Fart North-Arlington PMSA HUD Income Guideline `� fging E ._ Tuesday May 28, 2002 2;31 PM Kline&Co.-Joe Kline 817-207-8081 P,01 F#Y 2� IItI2 11 a eSRM WOOD PFiRTMERS 713 439 7901 P.2 i EXHIBIT C j I • I O THQ jrnrr�w Ia' `'' r a Application for �� tax arstemers 1 rr. �r rrr .w. C City, State,4P Code �. ,� ., r*dh�► I Telephone(9j;t • ass,,," , Fax - �.3._3€�-�L{>'t eat. Intanct E-mail addresses 0fsvailebte}: iW- Propaq Description Aftach legl deacdption or surveyor'mates buds description. . CurrentAppry&W Voueotl'rtopertp A=A latest copy of property tax.statsmem ftm the Courty Appraisai I)L tdct . AttUh S brief deseripOon of thi project Including:nuniber of units to be constructed, number of wAs to be renovated,sixe of units,..umber of affordable koadmg unity ff gVV"bt),rental resat per na t,a m u]ldes,ctcr r ProjectDescription . A. Coax arconitructiaa tf B. Site Daveioputent(Pam&ncd ,landsca M' s etc.): 1. Type of work to bo dana „ w # i J rir 2. Projected cogs S # C. Personal Property;Vacua of fiunisbings,offico equipmGUt, etc. $ Ar�—a . Projbct Construction: A. WbA POTCOM ofthe MM AM-;6M oasts(SA.&B.abovo)will you commit to spend with: 1. Fort Wt'rM businesses?_1,2, _ % 2. Nuotity and Women owned Business$aterprlses? .• ? % B. Wben will«mstruedon stmt C. flow naauy construction jobs will be creatrrrl?f S"4M D. 'What is the estimated payroll for tbese Jtabs? 1 A know many tlrll time jobs vvdlac cre B. WW permt Of 7A.will you cominit to be 6iled with: I. Fort Worth residents? °rb 33 s 2. Inner City resid " 1 a 1 m w u Tuesday'May 281 2002 2;31 PM Kline&Co, -Joe Kline 817-207-8081 p.02 MAY '29 2002 1 10 29RM WOOD PRRTNERS 713 439 7901 P.3 I ' C. Attach a desaxiption ofthe,jobs to be moved(technician,engineer,manager,etc),tasks to bo pied;br wA and wrago ra#e for ex&clasacatim D. Attach a brief description of the employet bene&pachge(s)t'tff"d(I.e.health I iusumsace.re&emen,public transportatiodi assistance day care pmrvisions,etc) it dudiag portion paid by employee and emplayet respectively. 'S. Regarding supply and service expenm(Le.landscaping,ofte ormmatteluring 2apF"c4#x0ftmrfal services,etc.). A- What is the amount ofnon-sole source supply and service sea?S_ B. 'G IW PeTUCURC WiU 6 cwialttcd to Fart Worth basInesses? 'Y4 C+ Wbat peroeatW WW be cxsmraitted to Mwrity and Women owned Businesso? V 9, U the promrty appropriately zoned for the projoc-C Y45 �0•b t P Platted?Tf y $wig replatting he necessary? ros,, rt,ekt 4 Y y ll,AlUch a description of any eavirormenW fmpacts mvWatcd wkb this project. 12.Attaeb a&aMptimot of any dihvet b me+fits to,tbAL My of Fart Wexth as a result of this project(Le.tsks tA4 Inventory tax,development fees,etc.) #4 aAW l ;J-4 + .-X* 1 41-A 44 ,lleftlfif frli fart+&ilit 1014V It rNNfte S4*R *k, ft .efe4 . 13,Do yen Intend th prarsue abs►trment ofr Cotustlr TVA? Q Yes jgt No School Tamil' © Yes p No 11.Wiest level oi'Atttement do you request:Fears?A p ?. aAA04 I&TA any person or limn receiving any form of compensation,wm**ston or other asos►OU7 benefit hASc4l on the level of irwentive obtained by the epp4mt from the C;ky of Fort Worth? Ir,M please a ach data& � 16.0-W Rd Attachment,,ezpleuln wby tae ahatsment is nftemary for the success ofthis ptvjed. Indude a.business pro-form or othair documentatich to substitdCtiAta your request air%jy .a<w 1w A ^4* /*at 1 On behalf of the alrphca rt,I the kftmation contained is this applic8tion(=hA4 all =actut ids)to be true and cc nwt. I Mbar cep that on behalf of the spplic a4 I have;read the Policy Stxtvmwt: Tom Absttam*nt For qua5e+d T:1evelapmeot p`rgjeete xnd agree to cc� rply with the guidelines stated t;Em in. ame- i i s r t EXHIBIT D PROPERTY DESCRIPTION Alta at Ridglea village will be a Class-A multi-family development located in the City of Fort Worth in Tarrant County, Texas. The property is strategically located in southwest Fort Worth, near the intersection of Camp Bowie Road and Interstate 30, a major east- west highway in the Metroplex. The Dallas/Fort Worth Metrroplex, is home to Fortune 500 companies such as Exxornobil, Southwest, CornpUSA, DR Horton, AMR (American Airlines Parent Company), Burlington Northern Santa Fe, Radio Shack, Suiza Foods, Texas Instruments, Centex, GTE, and Associates First Capital. Lockheed Martin, one of Fort Worth's largest employers, recently won a $20 billion contract to produce the F-16 fighter jet. The economic impact of the F-16 contract is forecasted to be substantial with over 20, 000 new direct jobs. This development represents a compelling investment opportunity based upon the following factors: • The City of Fort Worth recently declared our site and the surrounding Ridglea Village area a neighborhood Empowerment Zone (NEZ), where the City of Fort Worth will, at a minimum, waive city taxes for five (5) years, waive impact fees, and waive permit fees for new development. • The Fort Worth apartment market has a healthy 93.6% occupancy rate compared to the 92.9% occupancy rate for the overall Dallas/Fort Worth market. In addition, M/RF Research forecasts Fort Worth's occupancy rate to remain steady at 93.6% throughout 2002. • Due to its diversified economic base, the Fort Worth economy is not dominated by one industry sector but is instead balanced by Service employment (24.8%), Trade (22.3%), Manufacturing (11.8%), and Government(10.9%). • Dallas/Fort Worth's median population age is 32.6 years compared to the national average of 35.4. The average age in the Fort Worth Metro is only 31.4, with over 70% of the population under the age of 44. • The development will set aside 20% of the units for residents making 80% of the A_M, I and offer an exceptional unity and property amenity package that will attract quality residents from the vibrant local economy. LOCATION The site is immediately southwest of the intersection of Camp Bowie Road, a major retail corridor in southwest Fort Worth, and Bryant Irvin Road, a major north-south road that commuters from southwest Fort Worth use to access the Lockheed Martin facility. The property is in the he of the Ridglea Village retail co d mutes from the Rid ginar Mall with over 1,200,000 sq. ft. of shopm chars JC Penny, Dillard's. Foley's, and Neiman Marcus. In additi ui tNu i 1 mutes R!" EXHIBIT D south of Lockheed martin facility; immediately south of Westover Hills — one of Fort Worth's most prestigious single family neighborhoods; just west of Como, a neighborhood of lower middle class homes; immediately east of Ridglea Golf Club — a prestigious private Fort Worth country club, and about 10 minutes west of downtown. LAND AREA Approximately 9.37 Acres. TOPOGRAPHY N/A ZONING The property is zoned MU-2, which allows for up to 60 units/acre. UTILITIES All required utilities are or will be available to the site. PROPOSED UNIT MIX Unit Type # of Units % of Total Unit Size I br/ I ba(market) 41 16% 632 1br/lba (80%AMI) 10 4% 632 1 br/ I ba(market) 41 16% 789 lbr/ lba (80% AMI) 10 4% 789 2br/2ba(market) 102 40% 1,123 2br/2ba(80% AMI) 24 10% 1,123 3br/2ba(market) 20 8% 1,409 3br/2ba(80% AMI) 4 2% 1,409 Totals/Avg. 252 100% 983 PARKING In accordance with local requirements. ARCHITECT Womack+Hampton Dallas, TX LAND PLANNING Dunaway Associates, Inc. /Womack+ Hampton Architects Fort Worth, TX /Dallas, TX Number of Units 252-unit apartment complex 102 One-bedroom units 126 Two-bedroom units 24 Three-bedroom units 20% (50 units) set aside for families with income o /0 Zm f 800/ ye — EXHIBIT D Project Cost Land Acquisition 2,361,910 Construction Cost $14,366,486 Soft Cost $ 2.162,295 Total Investment $18,890,691 Legal Description Sections 1,2 and 3 and the North portion of Section 4, RIDGLEA APARTMENTS, an Addition to the City of Fort Worth, Tarrant County, Texas, according to plat recorded in Volume 388-D, Page 53, Deed Records of Tarrant County, Texas; being more fully described below. Section 4 North of Milburn Street BEGINNING at the northwest comer of that certain portion of sold Section 4 conveyed to the City of Fort Worth for an extension of Milburn Street by deed in Volume 5212, Page 962, of the Tarrant County Deed Records sold point being in the most westerly west line of sold Section 4 and the east line of Winthrop Avenue (50 foot wide right-of-way), from which point a V2" Iron rod found in place bears North 9 degrees East, 0.39 foot and said point of beginning being 173.49 feet South from the most westerly northwest comer of said Section 4 and the most westerly southwest comer of Section 2 in said Ridglea Apartments: THENCE with common lines between said Sections 4 and 2,the following courses and distances: East, 185.0 feet: North, 15.0 feet: East 15.0 feet: North 189.93 feet to a 5/8"iron rod found in place for comer: and, East 50.0 feet to the common east comer of said Sections 4 and 2 in the west line Of Bryant-Irvin Road(formerly Guilford Road-60 foot wide right-of-way): THENCE South with the east line of said Section 4 and sold west line of Bryant-Irvin Road, 349,21 feet to the northeast comer of said City of Fort Worth tract for Milburn Street, from which point a !/2'* iron rod found in place for the southeast comer of said tract for Milburn Street bears South 0 degrees, 13 minutes East, 49.42 feet: THENCE westerly with the north line of said City tract for Milburn Street, the following courses and distances: p North 88 degrees, 21 Minutes West, 115.933 feel to the begirming of a cuny center bears North 1 degree, 39 minutes East, 575.0 feet; EXHIBIT D westerly with said curve, a distance of 44.49 feet to the end of said curve: and North 83 degrees, 55 minutes West, 90.25 feet to the PLACE OF BEGINNING. F t �k t MANAGEMENT PLAN EXHIBIT"E" I. Lease-Up A. Prior to Office Opening 1. Management will meet with the Owner to identify any occupancy deadlines to which Owner may have committed to during the underwriting process. Owner will provide Management a copy of any commitments and all other governing documents that will affect lease-up and operations of the property. 2. Sixty (60) days prior to office opening, install a sign at the visible comers stating "Coming Soon - Alta Ridglea Village Apartment Homes (Telephone Number)." The phone calls should be forwarded to an answering service until the office opens. Once models are ready, a 'Models Open" banner should be placed on the sign. 3. Brochures, including floor plans and property features, will be printed on quality paper. These brochures will be used in mailings and marketing calls. 4. Management will schedule a meeting with a representative of the local housing authority to provide information about the community and discuss applicable processing and qualification for affordable units. B. Curb Appeal 1. The property entrance sign will be completed by the office opening date, complete with lighting and landscaping. 2. Construction debris will need to be cleaned up as needed. 3. Zone inspections will be completed weekly by staff members to ensure the property is clean and ensure there are no life safety issues. C. Product Preparation and Presentation 1. Only units that are market ready will be shown to prospects. This requires timely punch-out by construction and an attention to detail by the management staff. D. Advertising 1. The property brochures will be available for the initial lease-up. 2. All print advertising will contain the fair housing logo. 3. Copies of the brochures will be supplied to the local housing authority so that they have a product awareness to share with households on their waiting lists. WOOD MANAGEMENT PLAN II. Management Stabilization A. Property Entrance 1. The entrance landscaping will include colorful annual beds and should be in place prior to opening. 2. Banners, balloons and flags will be added to the entry; colors will be accenting the overall scheme of the property. B. Curb Appeal 1. The grounds will be picked up daily. 2. Flowers will be included in the landscaping plan at strategic locations. C. Office and Model 1. The office and models will be cleaned regularly. 2. Refreshments will be available for prospects. 3. A goal chart will be mounted in an out-of-the-way place to track leasing progress. 4. Soft music will be played in the model and in the office. 5. Scent dispensers will be used in the office and model to ensure the first impression is as positive as possible. 6. The office will be decorated monthly in accordance with the marketing theme, if applicable. D. Product Preparation and Presentation 1. Only units that are market ready will be shown to prospects. This requires timely punch-out and good detail work by the management staff. 2. "Show" units will be merchandized with items that draw attention to the features of each apartment. By identifying these features, a connection can easily be made with the prospective resident's hot buttons. E. Staff 1. All staff members will be properly trained in all areas of sales, telephone techniques, closing techniques, demonstrating the product, qualifying, and overcoming objections. 2. Weekly staff meetings will be held and attended by all staff members. General property progress will be reviewed, along with telephone logs and prospect cards. The meetings will be motivational in nature. 3. All staff members will be professionally attired. F. Market Knowledge 1. Market comparable surveys will be updated every month. 2. Leasing Consultants will physically shop the apartment communities in the area to learn about their competition. W L WOOD MANAGEMENT PLAN G. Advertising 1. Referral fees for residents and merchants are to be offered. Merchants that have a high number of clientele that matches the property target population will be solicited for merchant referrals. 2. Trailblazer signs will be printed with the property name, telephone number and directional arrows to lead prospects to the property. Areas of emphasis will be the high traffic, highly visible areas within a three-mile circumference of the property. 3. Contact with the local Chamber of Commerce and major surrounding businesses will be made to further encourage referrals. 4. The local housing authority will be supplied with property brochures and other necessary information about the community to assist them in determining which households from their waiting list would qualify for housing at the property. 5. All print advertising will contain the fair housing logo. 6. Newspaper ads will be placed in the local newspapers if deemed appropriate and effective. Newspapers that reach a target population will be utilized. 7. Daily telephone logs will be maintained to track the effectiveness of all advertising. The logs will be reviewed at the weekly sales meeting. H. Leasing Incentives and Bonuses 1. Anyone leasing an apartment will be paid a commission in accordance with management company policy. 2. As approved in advance by Owner, an incentive will be paid to each staff member based on meeting or exceeding the monthly rental goals. I. Marketing Calls 1. The staff will provide property information to the local housing authority on a regular basis. Consistent communications will be established with a representative of the housing authority making them aware of unit availability. 2. Marketing calls will be completed throughout the month. Records will be kept as to where information was left and with whom contact was made. Marketing call sheets are to be turned in monthly by each employee in order to receive their commissions earned. The following are areas of concentration which could be included: Q Churches U Business Parks Ll Community Organizations Ll Home Builders L) Local Businesses U Real Estate Offices Ll Major Employers of the Area Ll Malls U Hotels Ll Other Apartment Communities 3. The apartment locator services in the area will be contacted. ................ '&0A WOOD MANAGEMENT PLAN J. Staff Meetings 1. All staff members will be actively involved in monitoring the progress and effectiveness of the marketing strategy. 2. The plan will be examined by the Property Manager and any necessary changes made. 3. Weekly staff meetings will be held to analyze the progress, to brainstorm for new ideas and to recognize and commend outstanding achievement. K. Closing the Sale 1. A sense of urgency will be utilized in every sales presentation. This technique will be emphasized in all training courses. L. Follow-Up 1. All prospects who visit the property and do not lease will be contacted. The Leasing Consultant will send them a letter thanking them for visiting the property and to offer any additional information that will entice them to visit the property again. 2. The Leasing Consultant will attempt to contact the prospect by phone within 24 hours of their visit and then again one week later. 3. The Leasing Consultant will maintain all guest cards so the prospect may be contacted in the future. M. Resident Relations 1. Service requests will be completed timely and correctly from the onset to reassure the resident that they made the right decision. The following policies should be implemented: a. Office Staff Each staff member will take the appropriate action to ensure that specific information is obtained when a resident reports the service request. The person who takes the call will be responsible for the property follow-up to ensure that the service request is completed. He or she will call the resident to let the resident know that the service request has been completed. b. Maintenance Staff The maintenance staff will be well groomed and in uniform at all times. Approximately ninety (90) days before a resident's lease expires, the Service Manager will distribute a letter asking if there is anything that needs servicing in the apartment. al OOD MANAGEMENT PLAN N. Post Selling 1. Post selling will begin the day of move-in. An office member will accompany the resident to complete the move-in inspection and follow-up periodically to ensure that everything is satisfactory in the apartment. 2. All office personnel will communicate with the residents on a regular basis to ensure that repairs are not needed in his/her apartment. 3. A resident services program will be initiated once it is determined what services will be in the highest demand by the residents. O. Resident Orientation and Support Services 1. Resident orientation will be conducted with management beginning in the application stage and continuing through the initial move-in inspection of the apartment. As residents are accepted for occupancy, the management will conduct an orientation session with each family. This meeting will include dialogue with the family regarding its interest and expectations about community life at the property. The orientation will cover both the resident's responsibilities and management's responsibilities relating to the lease, rules and regulations, utilities connection, apartment care, maintenance procedures and other property policies. Residents will be educated about their obligations under the lease agreement. 2. Management will host resident social functions to promote a sense of community and enhance resident retention. 3. Management will have an "open door" policy for resident grievances. 4. Residents will be notified on a regular basis of upcoming resident programs. 5. A new resident orientation meeting will be held before or on the day of move-in. Delivery of the move-in package is required, which contains the following: a. Lease Delivery-The lease terms will be carefully reviewed and explained to the resident. b. Rules and Regulations - The rules and regulations will be fully explained to the resident. c. Additional rules that will be explained include: • Rent payment policy, • Late fees, • Returned check policy and • Apartment inspection report. 'n... ...... 'JI WOOD EXHIBIT"P Leasing Guidelines Business will be conducted in accordance with the Fair Housing Act. We provide equal housing and service for all people regardless of race, color,religion, sex,national origin, handicap or familial status. Occupancy Guidelines: No more than two individuals per bedroom may occupy an apartment unit,plus one infant per bedroom up to the age of 18 months at the time the lease is signed. Qualification Guidelines: All non-dependent leaseholders or non-dependent occupants of legal must fill out an application and are considered to be applicants. Credit history, income/employment and criminal history are verified for all applicants. All information provided must be accurate and complete, as well as verifiable. Each applicant's credit, criminal and income/employment information will be individually scored, with leaseholders' income combined for qualification. All occupants of legal age must be a leaseholder unless dependency status can be verified. Credit Worthiness: A credit report will be secured for all leaseholders to verify account credit ratings. Unfavorable accounts may affect qualification for residency, including but not limited to collection, charge off,repossession, current delinquency or bankruptcy. Income/Employment: Gross annual income will be verified for all leaseholders using a payroll check stub that is to be no older than 30 days. Annual rent as a percent of a leaseholder(s)annual income cannot exceed 35%. Additional sources of income may be considered. If self employed or primarily commission-based, a copy of the previous two years' tax returns will be required. Criminal History: A search will be conducted for each applicant's criminal history. A criminal background check will be run for all addressed at which the applicants have resided over the past 24 months. The application will be rejected for any of the following criminal related reasons that have occurred within the ten years prior to the application date: • Felony conviction • Any terrorist related conviction • Any illegal drug related conviction • Any prostitution related conviction • Any sex related conviction • Any cruelty to animals related conviction • Misdemeanor conviction involving crime against persons or property. • Any of the above related charges resulting in"Adjudication Withheld"and/or"Deferred Adjudication" • Active status on probation or parole resulting from any of the above Reasons for not approving an application include, but are not limited to: bankruptcy within the past two years, insufficient income, unpaid judgements, eviction, outstanding rent debt, criminal record, household size exceeding occupancy limits and falsification of the application information. EXHIBIT G MINORITY/WOMEN BUSINESS ENTERPRISE The following document lists the Minority/Women Business Enterprise (M,`WBE) for the 9-county area that makes up the Fort Worth market referred to in the tax abatement agreement as area M/WBE. The nine counties are Tarrant, Parker, Johnson, Collin, Dallas, Denton, Ellis, Kaufman and Rockwall. Contractors not on that list can apply for certification through the North Central Texas Regional Certification Agency (NCTRCA) or the Texas Department of Transportation, highway division. The NCTRCA application can be picked up from the City of Fort Worth M/WBE office located at 1000 Throckmorton Street, Fort Worth TX 76102. To be counted toward the required percentage of M/WBE, contractors or subcontractors need to be certified before award of the project. The list of M/WBE contractors includes contractors from Fort Worth. Developers can obtain the list of M/WBE contractors by specific trades by sending a written request to the City of Fort Worth M/WBE office or by visiting the City of Fort Worth's Website (fortworthgov.org). This list is updated every three months. Developers can obtain updated list from the City of Fort Worth M/WBE office or from the City of Fort Worth's Website. ? t i City of Fort Worth, Texas Ma or and Council Communication DATE REFERENCE NUMBER LOG NAME PAGE 7/23/02 G-13679 05ZONE-3 1 of 3 SUBJECT PUBLIC HEARING FOR DESIGNATION OF FORT WORTH NEIGHBORHOOD EMPOWERMENT REINVESTMENT ZONE NO. 3 AND TAX ABATEMENT AGREEMENT WITH J. KLINE, LLC AND WP SOUTH ACQUISITIONS, LLC AND RELATED FINDINGS OF FACT BY THE CITY COUNCIL RECOMMENDATION: It is recommended that the City Council: 1. Hold a public hearing concerning the designation of 9.37 acres of vacant land, as described in Appendix A, as Fort Worthi Neighborhood Empowerment Reinvestment Zone (FWNERZ) No. 3; and 2. Adopt the attached ordinance which designates FWNERZ No. 3 pursuant to the Texas Property Redevelopment and Tax Abatement Act, Tax Code, Chapter 312; and 3. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement with J, Kline, LLC and WP South Acquisitions, LLC are true and correct; and 4. Authorize the City Manager to enter into the attached Tax Abatement Agreement with J. Kline, LLC and WP South Acquisitions, LLC in accordance with the Neighborhood Empowerment Zone Basic Incentives, as amended. DISCUSSION: I. PUBLIC HEARING AND ORDINANCE ON NEIGHBORHOOD EMPOWERMENT REINVESTMENT ZONE DESIGNATION One of the incentives a municipality can provide in a Neighborhood Empowerment Zone (NEZ), according to Chapter 378 of the Texas Local Government Code, is an abatement of municipal property taxes for properties in the NEZ. The subject property described in Appendix A is being designated as FWNERZ No. 3 so the City can enter into a tax abatement agreement under the guidelines set forth in the Tax Code. A public hearing is required by the Texas Property Redevelopment and Tax Abatement Act (the Act). Notice of today's public hearing was (1) delivered to the governing body of each affected taxing unit, and (2) published in the newspaper at least seven days prior to this meeting. The Act requires the property receiving a tax abatement to be located in a reinvestment or enterprise zone. The proposed area meets the criteria for the designation of a reinvestment zone. As a result of the designation, the area will contribute to the retention or expansion of primary employment and attract major investment in the zone that would be a benefit to the property and contribute to the economic development of the municipality. Further, future improvements in the zone would be a benefit to the City after any Tax Abatement Agreements that may be entered into have expired. The proposed FWNERZ No. 3 expires after five years and may be renewed for periods not to exceed five years, City of Fort Worth, Texas Mayor and Council C DATE REFERENCE NUMBER LOG NAME PAGE 7123102 G-13679 05ZONE-3 2 of 3 SUBJECT PUBLIC HEARING FOR DESIGNATION OF FORT WORTH NEIGHBORHOOD EMPOWERMENT REINVESTMENT ZONE NO. 3 AND TAX ABATEMENT AGREEMENT WITH J. KLINE, LLC AND WP SOUTH ACQUISITIONS, LLC AND RELATED FINDINGS OF FACT BY THE CITY COUNCIL 11. TAX AGREEMENT WITH J. KLINE LLC AND WP SOUTH ACQUISITIONS LLC The property subject to abatement in the attached Tax Abatement Agreement with J. Kline, LLC and WP South Acquisitions, LLC is located in west Fort Worth in the Ridglea Village/Como NEZ. This property is located in Neighborhood Empowerment Zone No. 2 and is proposed to be designated as Fort Worth Neighborhood Empowerment Reinvestment Zone No. 3. This reinvestment zone is located in COUNCIL DISTRICT 3. Project J. Kline, LLC and WP South Acquisitions, LLC are proposing to construct a 252-unit multi-family apartment complex on the 9.3-acre site. Fifty of the units will be set aside for persons at or below 80% area median income (AMI). The total investment is estimated at $18,890,691, and the construction cost, which will be the basis of the tax abatement, at $14,366,486. TAX ABATEMENT TERMS The tax abatement is structured as follows: Amount and Limitation of Abatement The actual amount of the abatement granted under the agreement shall be based upon the value of the improvements constructed on the subject site, but will not include the value of the site itself. The abatement in any given year shall be based on the increase in value of the required improvements up to a maximum of $30,000,000. The estimated amount of the abatement over the 9 year term is $869,890. Duration of Abatement The tax abatement will be in effect for 9 years. The developer will be eligible to receive 100% abatement on the eligible basis for the first 5 years, and receive tax abatement on the eligible basis for years 6 through 9 at the rate of 80%, 60%, 40%, and 20%, respectively. i Commitments and Reduction of Basis for Years 1 to 5 The information below indicates the developer's commitment under the agreement and the corresponding reduction to the abatement if the commitment is not met during years 1 through 5. * Minimum Investment Default * 20% set-aside (loss of abatement for each year not in compliance) 1 00% f City of Fort Worth, Texas Mayor and Council Communication DATE REFERENCE NUMBER LOG NAME PAGE 7123/02 G-1 3679 05ZONE-3 3 of 3 SUBJECT PUBLIC HEARING FOR DESIGNATION OF FORT WORTH NEIGHBORHOOD EMPOWERMENT REINVESTMENT ZONE NO. 3 AND TAX ABATEMENT AGREEMENT WITH J. KLINE, LLC AND WP SOUTH ACQUISITIONS, LLC AND RELATED FINDINGS OF FACT BY THE CITY COUNCIL Commitments and Proportionate Reduction for Years 6 to 9 The information below indicates the developer's commitment under the agreement and the corresponding reduction to the abatement if the commitment is not met during years 6 through 9: 25% of Total Construction to Fort Worth Businesses 0-20% • 30% to M/WBE 0-10% • 30% of M/WBE to Fort Worth M/WBE 0-10% • 20% set-aside for affordable housing 0-20% 6 jobs, 3 to Fort Worth, 1 Central City* 0-20% Passing of yearly inspection* 0-10% Landscaping, tenant selection, management plan and uses of premises* 0-10% *Audit yearly from year one but assess penalties during years 6 through 9. The project proposes to create 550 construction jobs and at least 6 permanent jobs, invest more than $18,000,000 in Fort Worth, contract $3,591,621 with Fort Worth contractors, and contract $4,309,946 with M/WBE firms. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that no expenditure of City funds is associated with the approval of this agreement. RR:k i Submitted for City Manager's FUND I ACCOUNT CENTER AMOUNT CITY SECRETARY I Office by- (to) € Reid Rector 6140 Originating Department Head: � [ Jerome Walker 7537 (from) APPROVED 07/23102 E ORD.# 15160 s Additivnai Iuformatic�n Ccrtactm l � E I E Elizee Michel 7336 i j