HomeMy WebLinkAboutContract 28120���� �������� � 1a
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COU1�I'TY OF TARRANT §
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TAX ABATEMENT AGREEMENT FOR PR�PERTY LQCATED IN,A
�VETGHBORHOOD EMPOWERMENT ZONE
This TAX ABATEMENT AGREEMEIlTT ("A�reement") is entered into by ar�d
between the CITY OF FORT WORTH, TEX,AS {the "City"), a home ruie municipal
corporation organized under Che laws of the State of Texas and acting by and through
, its duly authorized Assistant City Manager, and the Fart Worth
Housing Finance Corporation, a non-pro�it hausing de�elopment
carporatian, {��Owner"), acting by and thraugl� Jerome Walker, its duly
authorized �wners' Representative. -
The City Council of the City of Fort Warth ("City CounciP!) hereby finds and the City
and Qwner hereby agree that the following statements are true and correct and constitute the
basis upon which the City and Owner have e�tered into this Agreernent:
A. Chapter 37$ of the Texas Local Government Code allows a municipality to create
a Neighborhood Empaw�rment Zon� (NEZ) if the municipality determines that
the creation of the zone would gromote: .
1. The creation of affardable housing, including manufactured housing in the
zone; .
2. An increase in economic de�elflpment in the zone;
3. An increase in the quality of social services, education, or public sa%ty
provided to residents of the zone; or
4. The rehabilitation of affordable housing in the zone.
B. Chapter 378 af the Texas Local Gavernment Code provides that a municipality
that creates a NEZ, may enter into agreements abating municipal praperty k�ixes
on property in the zone.
C. On July 31, 2001, the City adopted basic incentives for praperty owners wha own
property located in a NEZ, stating that the City elects to be eligible ta participate
in tax abatement and incYuding guidelines and criteria governing ta�c abatement
agreements entered inta between the City and various third parties, titled "NEZ
Basic Tncentives" ("NEZ Incentives"}, which is attached hereto as Exhibit "A"
and hereby made a part of this Agrcement for al� purposes.
D. The NEZ Incentives contains appropriate guidelines and criteria governing tax
abatement agr�ernents to be entered into by the Cit� as contemplated by Chapter
3�.2 of the Texas Tax Code, as amended (the "Code"). .
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E. On September 11, 2001, the Fort Worth City Council adapted Orc3inance No.
14757 (the "Oxdinance") e�tablishing "Neighborhood Empowermen�
Reinvestment Zone No. 1," City of Fort Worth, Texas (the "Zone").
F. Owner owns certain real property �ocated entirely within the Zone and that is
more partiaularly described in Exhibit `B", attached hereto anc� hereby made a
part of this Agreement for all purposes (�he "Premises").
G. Owner or its assigt�s plan to canstruct the Required Impravements, as defined in
�ect�an 1.1 of this Agreement and as described in Exhibit "C", an the Premises to
be used for as a single-famiIy residence that will bc: owner occupied. (the
"Project").
H. On S�ptember 28, 2001, Qwner suhznitted an appiication fox NEZ incentives and
tax abatement to the City concerning the contemplated use of the Premises (the
"AppIication"), attached hereto as Exhibit "D" and hereby mac�e a part of this
Agreement for al� puxpvses.
I. The City Council finds that the contemplaked use of the Premiscs, the R�quired
Improvements, as defined in Section 1.1, and �he terms of this Agreement az'e
consistent with encouraging development of the Zane in accordance with the
purposes for its creatian and are in campliance with the NEZ Tncentives, t�e
Resolution and other applicable laws, ord.inanees, rules and regulations.
J. The City �ouncil finds that the terms of this Agreement, and the Premises and
Required Improvernents, satisfy the eligibility criteria of the NEZ 7ncenti�es.
K. W�itten notice that the City intends ta enter into this Agreement, along with a
copy of this Agreement, has been furnished in the manner prescribed by the Code
to the presiding offic�rs af the governing bodies af each of the taxing units in
which the Premises is lacated.
N4W, THEREFORE, the City and �wner, far and in consideration of the terms and
canditians set forth herein, do hereby contract, covenant and agree as follaws:
1. OWNER'S COVENANTS.
1.1. Rea� Propertv Improvements.
Owner shal� construct, flr cause to be constructed, on and within the Premises
certain impro��ments consisting of a single family residence, (i) of at least 1,200 square
feet in size, and (ii) having a canstraction cost upon completion of $ 60,000 incluc�ng site
development costs but such minimum construction �osts shal� be. reduced by any
construction cost savings {collectively, the "Required Improvements"). Owner shall
provide a survey of the completed home showing Required_ Improvements before kt�e
hame is sald. The parties agree that the final survey shail be a'p�� 4��f��� _����n F and
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shall be labeled Exhibit E. Minor variations, and more substantial variations if approved
in writing by both of the parti�s t� this Agreement, in the Requir•ed Tmprovements from
the description pzovided in the Application for Tax Abatement shall na� canstitute an
Event of Default, as defined in Section 4.1, pravided thaC the condi�ions in thE first
sentence af this Section l.l are met and the Required Tmpro�errients are used for the .
purposes and in the mann�r described in Exhibit "D"..
1,�. ComAletion Date of Reauired Imnravement,�, .
Owner covenants Co substantially complete constxuction of all of the Required
Improvements within two years from the issuance and receipt of the building permit,
unless delayed because of force maj�ure, in which case the two years shal� be extended
by the number of days comprising the specific force majeure. For purpases of this
Agreement, force majeure shall mean an �vent beyond Owner's reasonable control,
incl�ding, without limitation, delays caused hy adverse weather, delays in receipt af any
required germits or approvals fram any gor�ernmental authority, or acts af God, fires,
strikes, national disasters, wars, riots anci material or iabor restrictions and shortages as
determin�d by the City of Fort Worth in its sole discretion, which shalI not be
unreasonably withheld, but shall not inciude cnnstn�ctian delays eaused due to purely
financial matt�rs, such as, without limitaCion, delays in the obtaining of adequa�e
financing.
1.3. Use-a�Premises.
Owner covenants that the Required Impravements shall be constructed and the
Premises shall be sold so that it is continuously �sed as the primary residence af the
Home Buyer in accardance with the descnption of the Project set forth in Exhibit "D". In
additian, Owner covenants that thraughaut the Terrn, the Required Improvements shall
be operated and maintained for the purposes set forth in this Agreement a�d in a manner
that is consistent with the �gen�ral purposes of encouraging develapment or
redeveiopment of the Zone.
2. ABATEMENT AMOUNTS. TERMS AND CONDTTTOI�IS.
Subject to and in accordance with this Agreement, ti�e City hereby grants to Owner a real
property tax abatement an the Premises, the Required Improvements, as�specifically provided in .
this Section 2(��Abatement"). "Abatement" of real property taxes only includes City af Fort
Worth-impased taxes and not taxes from other taxing entities. 4
�.1. Amount of Abafement.
The actual amount af the Abatement granted under this Agreement sha11 be .
based upon the zncrease in value of the Premises and Che Require�=�;��uement� ��Pr
their values an January i, 20Q2 and according to the Tarrant A��pk���;;�vll �,i�'�t���.,,r5 �-,
amount is $1,000 the year in which this Agreemant was entered into '
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One Hundred percent { l OQ%) o� the increase in value from the
construction of the Required Izziprovements. �
If the total construction �osts of the Required Improvements are IE55 than as
provided in Section 11 of this Agreement, except that such minimum constructian casts
shall be reduced by canstruction cost savings, �wner wi11 not be eligible to receive any
Abatement under this Agreement.
2.2 Term of Abatemen�.
Tl�e term of the Abatemeni (the �"Term") shall begin on January 1 of ti�e
ye�ar following the calendar year in which the Required Impravement is sold to a
Home Buyer ta be used as its primary residence ("Beginning Date")_and, unless
sooner termina�ed as herein provided, sYiall end on December 31 imrnedia�ely
precedi�.g the fifth {�`h) anniversary of the Beginning Date. Upon the sale to a
Hame Buyer, City shall certify that the Required T�nprovements have been
completed in satisfaction of the terms of this Agreement.
However, the Compiiance Auditing Term will begin on the date this agreerrient is
executed and will end on the expiration date of the Term.
�.3. Protests Over Anuraisals or A�g�smenis.
�wner shall have the right to protest and contest any or all appraisals or
assessments of the Premises andlor imprav�ments therean. �
2.4. A6atement ApUlication Fee.
The City acknowledges receipt from �wner of the required Abatement
application fee af twenty-five dollars ($25.00}.
3. REC4RDS. CERTIFICATION AND EVALUATION OF PR4.TECT.
3.1. Insneciian oF Pr�mi�,
Betwean the executiori date of this Agree�nent and the last day of the Term, at any
time during construction of the Required Improvements and following reasonable natice
ta �wner, the Ciiy shall ha�� and Owner shall pravide access ta the Prernises in order for
the City to inspec� the Premises and evaluate the Required Tmpro�ements to ensure
compliance with the �terms� and conditians of this Agreernent. . Owner shall coaperate
�ully with the City d�r�ng any such inspectian andlor e�aluation.
3.�. C�ertificaiion � _,
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Property Owner, and Home Buyer once the property is sold, .shall certify annually
to the City khat it is in compliance with each appliCable term of this agreement. The City
sha]1 have the right to audit at the City's expense the financial and business recards of
Owner that relat� to the Construetion of Che Project and Abatement terir�s and conditions
(collectively, the `�tecords") at any time during the Compliance Auditing Tezm in order
to determine compliance with this Agreement and ta calculate the correc� percentage of
Abatement available to Owner. Owner shall make all applicable Records available to the
City on the Premises or at anather location in the City following reasonable ad�vance
notice by the City and shall otherwise cooperate fu11y with the City during any audit.
3.3. Provision o�f �n�armation.
On or before February 1 following the end of every year during the Campliance
Auditing Term and if requested by the City, Owner �shall provide information and
documentation for the previaus y�ar that addresses Owner's campliance with each of the
terms and conditions of this Agreement for that calendar year.
Failure to provide all information wiihin the corttrol of Owner required by this Sectian
3,3 shadl constitute an Event of Default, as defined in Section �.I.
3.4. Determination of Campliance.
On ar before August 1 of each year during the Compliance Auditing Term, the
City shall make a decision and rule on the actual annual percentage of Abatem�nt
a�ailable to Owner for the fallowing year of the Term and shall notify Owner of such
decision and ruling. The actual percentage of the Abaternent granted for a given year of
the Term is therefare based upon Owner's compliance with the terms and conditions of
this Agreement during the previous year of the GompIiance Auditing Term.
4. . EVENTS OF DEFAULT.
4.1. Defined.
Unless otherwise specified herein, Ovvner shall be in default of this Agreement if
(i) Owner fails to construct the Requir�d Improvements as defin�d in Section 1.1; (ii) ad
valorern real property taxes wi�h respect to the Prernises ar the Pr�ject, or its ad �alorem
taxes with respect ta the tangible personal praperty iocated on the Premises, become
delinquent and Owner does not timely and pr�perly %llow the legal pracedures for
protest andlar cantest of any such ad valor�m real property or tangible personal property
taxes or (iii) Home Buyer does not use the Prcrnises as primary re�idet�ce once� the
abatement begins (collectivcly, each an "Event of Default"},
4,2. l�otice ta Cure.
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Subject to Section S, if the City determines that an Event of Default has occurred,
th� City shali provide a writ�en natice to �wner that describes the nature of the Event of
Defauit. Owner shall have ninety {90} calendar days fram the date of receipt of this �
written notice to fully cure or have cured the Event of Default. Ti Owner reasonably
believes that Owner will require additional time io cure the Event of Default, Owner shall
promptly noCify the City in writing, in which case (i) after advising the City Council in an
apen meeting af Owner's efforts and intent to cure, Owner shall have one hundred eighty
{lSp} calend�r days from the original date of receipt of the written notice, or {ii) ii Owner
reasonably belie�es that Owner will require more than one hundred eighty (180) days to
cure the Event of Default, after ad�ising the City Council in an open meeting of Owner's
efforts and intent ta cure, such additional time, if any., as may be offered by tl�e City
Council in its sale discretion. �
4.3. Termination �or Event of Deisuit and Pavment of Liquidatcd D�na�es.
If an Event of Default vvhich is defined in Section 4.1 has not been cured within
the time frarne speci�cally allowed under Section 4.2, th� City shall have the right to
terminate this Agreement immediateIy. Owner acicnowledges and agrees that an uncured
Event of Defaul� wili (i) harm khe City's economic development and redevelapment
efforts on the Premises and in the vi�inity of the Premises; (ii} require unplanned and
expensi�e additional administrati�e oversight and invalvement %y the City; and (iii)
otherwise harm the City, and Owner agrees that the amounts of actual damages therefrom
are speculativ� in nature and will be difficult o:r impossible to ascertain. Therefore, upon
te:tminatian of this Agrearnent fox any Event of Default, Owner shall not be eligible for
the Abatement for the remaining Terni and Owner shall pay the City, as liquidated
damages, all taxes that rwere abated in accordance with this Agreement fnr each year
when an Event of Default existed and which otherwise wouid have been paid to the City
in the absence of this Agreement. The City and Owner agree that this amaunt is a
reasanable appraximation of actual damages that the City wi13 incur as a result of an
nncured Event of Default and tI�at this Section 4.3 is intended ta provide the City with
compensation for actual damages and is n.ot a penalty. This amount may be recovered by
the City through adjustments made to Owner's ad valorem property ta�c agpraisal by �he
appraisal district that has jurisdictian over the Premises. Otherwise, this amount shall be
due, owing and. paid to �he City within sixty (60) days following the eff�ctive date of
termination of this Agreerrlent. In the event that aIl ar any portion of this amount is not
paid to the City within sixky (6a) days foIlowing the effective date of termination af this
Agreerrient, Owner shall also be liable �ar all penalties and interest on any aatstanding
amaunt at the statutory rate for delinquent taxes, as det�rrnined by the�Cade at th� time af
the paymeni of such penalties and interest (currently, Section 33.01 of the Code},
4.4. Termination at Wi�l.
If the City and Owner m�xtually 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 greferable, the City and Ownex iri�� terminate-�'h;�
Agreement in a written farmat that is si�ned by both parties. Tn this even�,'',(i� i�,tl��E'�"��r.
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has commenced, the Term shall expire as of the effeetive date of the ternunation of this
Agreement; (ii) there shall be no recapture of any taxes previously abated; and (iii)
neither party shall have any ft.u'ther rights or obligations hereunder.
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City:
EFFECT QF SALE OF PREMISES.
The Abatement granted hereunder shalI vest only in Owner and cannot be
assigned to a new owner af a11 or any portion of the Premises andlor Required
Improvements wiChout the prior written consent of th� City Council, which consent shall
not be unreasonably withheld provided that {i} the City Cauncil finds that the proposed
assignee is finaneially capable of ineeting the terms and conditions af tl�is Agreement and
(ii) the proposed purchaser agrees in writing to assume all terms and canditions af Owner
under this Agreement. Owner may not otherwise assigta, lease or convey any of i�s rights
under this Agreement. Any attempted assignment withaut the City Council's prior
written consent shall constitute grounds for terrnination of this Agreement and the
Abatement granted hereunder follawing ten (10} calendar days of receipt of written
naLice from the City to Owner.
In no event shail the abatemen� ferm be extended in the event of a subsequent sale
or assignment.
NOTTCES.
All written notices calIed far or required by this Agreement shal� be addressed to
th� following, or such other party or address as either party designates in writing, by
certified mail, postage prepaid, ar by hand delivery: . �
Owner:
City of Fort Worth
Attn: City Manager
1000 Throckmorton
Fort Warth, TX 76102
�. n�scELLA�9us.
7.1. Bonds..
Fort Warth Housing Finance Corporation
1000 Throckmarton
Fort Worth, Texas 76102 �
The R�quir�d Impro�emen�s will nat be financed by t� increment boncis. This
AgreemenC is subject to rigHts of holders of outsCand�ng bands af the City.
i.2. Conf�icts of Interest.
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Neither the Premises nor any of the Required Improvements covered by this
Agreement are awned or leased by any member of the City Council, any member of the
City Planning or Zcsning Commission or any member of the governing body of any taxing
units in the Zone. �
i.3. Conflicts Between Documents.
In the event of any conflict between the City's zoning ordinances, or other City
ardinances or reguiations, and this Agreement,. snch ordinances or regulations shali
contral. In the event of any conflict between the body of this Agreement and Exhibit
"D", tl�e body of �his Agreement shall control.
i.4. Future Anplicatian.
A portion or aIl of the Premises and/or Required Improvements may be eligible
for complete or partial exernption from ad valarem taxes as a result of existing law or
future legislation. This Agreem�nt shall not be � construed as e�idence that such
exemptions do not apply to the Premises andlor Required Irnpravernents.
7.�. Citv Council Au�horiz�tion.
This Agreement was authorized by the City Council through approval of Mayor
and Council Communicat�on No. on , which, among other
things, authorized the City Manager to execu�e this Agreement on behalf of the City.
7.G. Estooael Cert'�icate.
Any party hereto may request an estoppel certificate from another party hereta so
long as the eerti�icate is requested in cannection with a bona fide business purpose. The
certificate, which if requested wiil be addressed to the �wner, shall inciude, but not
necessarily be limited to, statements that this Agreement is in fulI force and effect
wiChout default (or if an EvenC af Default exists, the nature of the Event of Defauit and
curative action taken and/or necessary to effect a cure), the remaining term af this
Agreement, the levels and remaining t�rm of the Abatement in eifeck, and such other
matters reasonably requested by the party or parties to recei�e the certificates.
'�.i. Owner Standin�.
Owner shall be deemed a proper and necessary party in any litigatibn questaaning
ar challenging th� �alidity of this Agresment ar any of the underlying laws, ordinances,
resol�tions or City Cottncil actions authorizing this Agreement, and Qwner shall be
entitled to intervene in any such litigation.
7.8. Venue and Jurisdiction.
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This Agreen:xent shall be construed in accordance with the Iaws of the State of
Texas and applicable ardinances, rules, regulations or policzes of �the City. Venue for any
action under this Agreement shall lie in the State District Court of Tarrant County, Texas.
This Agreement is perfonnable in Tarrant County, Texas
7.9. Recordation.
A certified copy of this Agreem�nt in recordable form shall be recorded in the
Deed Records of Tarrant County, Texas.
7.1U. Severabilitv.
If any provision of this Agreement is held Co be invalid, illegal or unenforceable,
the �alzdiiy, legality and enforceability of the remaining provisions shall not in any way
be affected ar impaired. �
'�.11. Headin�s Not Cantrolli��,
Headings and titles used in this Agreement are for reference purposes only and
shall not be deemed a part of this Agreement.
'�12. Entiretv of Agreemen�,
This Agreement, including any exhibits attached hereto and any documents
incorparated herein by reference, contains the en�ixe understandin� and agreement
between Che City and Owner, their assigns and successors in interest, as to the matters
contained herein. Any prior or contemparaneous oral or written agreernent is hereby
declared null and void to the extent in conflict with any provision of this Agreement.
This Agreement shall not be arriended unless executed in writing by both parties and
�pproved by the City Council. This Agr�em�nt may be executed in m�ltiple
counterparts, each of which shall be considered an original, but all of wl�ich shall
canstitute one instr�.iment.
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EXECUTED thi day of , 2002, by the City of Fort Worth,
Texas.
EXECUTED this �day of �c�� �e �.�, � � v
Finance Corparation.
CORPORATION:
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J r e C. Walker
CITY OF FORT WORTH: FORT WORTH HOUSYNG FINANCE
:
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Assistant City Manager
AT"I`EI�'�`: .
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Ry: .�— -
�ity Secretar�'
APPROVED T �QRM AND LEGALITY�
By: .
Cynthza Garcia
Assistant City Attorney _
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M&C: ,t �,... , _
ATTEST:
:
, 2002, by Port Worth Housing
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STATE OF TEXAS �+
COUNTY DF TARRANT §
BEF�RE ME, the undersigned authority, an this day personally appeared
I'i�+d ��,c.TOR . Assistant City Manager of the CITY OF FORT WORTH, a municipal
corporation, known ta me ta be the person and officer whose name is subscribed to tha foregoing
instrument, and acknowledged to me that the sarne was the act of the said CITY OF F�ORT
WORTH, TEXAS, a municipal corporatian, that he was duly authorized to perform the same by
appropriate Mayor and Council Cornmunication af the City Council of the City of Fart Worth
and that he e�.ecuCed the same as the act af the said City for the purposes and consideration
therein expressed and in the capacity therein stated. '
GNEN UNDER MY HAIVD AND SEAL OF OFFICE this /�*—� day af
e�-t��,r � . �ao�. .
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Natary Public in and for
the State of Texas
f��S�.11l� �}il� N�S
Notary's Printed Name �
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�,��» G�� R05EL�,4 6ARNES
���° �N�'iARY PUBLlC
��y � 5tate o1' Texas
�o��Cc�mm. Fxp. 03-31-2D05
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STATE OF TEXAS §
COUNTY OF TARRANT � §
BEFORE ME, the undersigned authority, on �his day personally appeared �e,r-���,.,� �� [..,�,� ��,�
,�'� �.r..`�- a� the Fort �ortl� Housing Finance Corporation, a Texas nan- profit carporation,
kno�n to me ta be the person whose name is subscribed to the foregaing instrument, and
acknowledged to me that hc: execut�d the same for the purposes and consideration therein
expressed, in t�e capacity therein stated and as the act and deed of the Fort Warth Housing
Finance Corpoxation.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this �d1- �� day
of Sef� 'i-e +-.,. .� e � , 2042. �
�.�,��..,_ �p��,..�� .
Notary Public in and for
the State of Texas �; - � � "y -��
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; �'`' � � WILLIAM ii�WI1T' '','
MY COMMISSI�N E,}(FIRES t
'�;:�R%�:��° January27,2d0'J b
,
Notary's Printed Name '. . _ � "�.` �. .... .��
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Exhibit A: NEZ Incentives
Exhibit B: Property Description
Exhibit C: Project C�SCT1pi1D11 includi�g ldnd, nunabex and lflcation of the proposed
1�T3�]TO VeI71BIlt5. .
Exhibit D: . Application: (NEZ) Incentives and Tax Abateinent
Exhibit E: Final Survey
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cir�r o� �oR� r�vo�-r�
IVEIGHBORHOOD �MPOWE�MEMT ZQ�IF (N�Z} BASfC IAICFNiIV�S
Adopfed hy fhe Fort Worfh City Council o� July 39, 2001 (M&C G-93208 R)
Amended by the Fort Worfh City Council on Apri! 2, 2002 (M&C G-93580J, July 23, 2002
(M&C G-9�fi62}
1. GENEF�AL PLJRp�S� AIVD O�J�CYN�S
Chapter 378 of the Tsxas Loca� Government Code aflows a municipality fo create a
Neight�orhood Empowerment Zone (NEZ) wh�n a"...municipality determines that fhe ereafion
ot the zone wo�ld promate:
(1) the creation af affflrdable hausin�, incli�ding manufactured housing, in fhe zone;
(2) an increase in economic de�elapment in the zone;
(3) an increase in the quality of social services, educaii�r�, ar pu�l�c safety pro�ided fo
residents of the zone; or
(�4} fhe rehabilitation of affordable housing in the zone."
The City, by adopting the following incentives, will promate affordable housing and
ecnnomic development �n ihe NEZ. NEZ incentives will not be granted after the NEZ expires as
defined in the resolution designating the NEZ. For each NEZ, the Gi#y Council may ap�rove
additional terrns and incenti�es as permitted by Chapter 378 of th� Texas Local Governmen#
Cod� or by City Council resolution. However, any tax abatement awarded before th� �xpiratiQn
of a NEZ shall carry its full term accordi�g to its tax abatement agreeme�t approved by tF�e City
Council. ,
As mandafed by sfage law, the property tax abatemenf under ihi� policy applFes to ths
owners of real praperly. Nofhing in fih.e policy shal� be construed as an ob[igai9on 6y the
City o� �ort 1�Varth to approve any tax abatemeni applicafion.
ll. A�FINITI�WS
"A6atement" means the full or partial exempiion from City of �ort Worth ad valorem #axes on
eligb�e properties for a period of up tn 10 years and an amount of up fa 100°/o of the increase in
appraised val�e (as reflected on tY�e certified fax roll of the appropriate county appraisa! district)
resulting frorn improvements. �ligible praperties must be �ocated in the NEZ.
"Base Value" is the value of t�te property, excluding fand, as determinecl by the Tarrant Caunty
Appraisal Disirict, during fhe year reh�bilifation occurs.
"Building Standards Commission" is the commissEan created under 5ec. 7-77, Ar�icle IV.
Niinimurn B�ilding Siandards Cade of the For� Worth City Cod�, '
"Capital Investment" includes onfy real pro�erty irrtpro�ements such as new facilities and
str�ctures, site impro�ements, �aciii#�r expansion, and faci�ity modernizatior�. Capitaf Investment
does NOT include land acquis�tion costs and/or any exis#ing impravements, or personal property
(such as machinary, equiprnent, andlor supplies and inve�tory).
"Cfty of Forf Worth Tax Abatement Policy Stafemer�t" means the policy adapted by City Gouncif
on F'sbruary 29, Z000.
"Comm�rcial/lndustrial Deve{opmen# Projecf" is a developmenf project w�ich proposes to
construct or rehabiiitate commerciallindustrial facilities on properky that is {or meeis the
requirements to be} zoned cammercial, industrial ar mixed use as de�ined by the City af Fort
Worth Zoning Ordinanc�.
"Comrrrunify �acility Developmenf Projec#'sis a de�elopment project which proposes fo construct
or rehabili�ate community facilities on property tf�at aliows such use as defined by the City of
Fort Worth Zoning Ordinance.
"Eligible Rehabilitatian„
Rehabilitafion does NOT
andlor supp[ies).
includes onfy physical impravements to reaf praPerty. EligibEe
inciude personaf property (such as furniture, appliances, ec�uipmenfi,
�Gross Floor Area" is measUred by taking the outside dimensian$ of the buildmg ati each floor
I�v�l, �xcept ihat portion flf the basement used only for utilities or storage, and any areas within
ti�e buildmg used for ofF-sireet parl�ing.
"Minimum Buildrng Standar�s Code" is Artiele 1V of the Fort WorCh City Code adopted pursuant
to Texas Local Govemment Code, Chapfers 54 and 294.
"Minority Business Enterprise (MBE)" and "Women Business Eraferprise {WBE)" is a minority or
woman owned busin�ss that has rec�i�ed certification as either a eertified MBE or certified
WBE by either the Nort� Texas Regional Certification Agency {NTRCA) or the Texas
De�arkment of Transporkation {TxDot), Highway Division.
"Mixed-Use Development Project" is a develvpment project which proposes to canstruct ar
rehabilifate mixed-use facilifies in which residentia[ uses cnnstitute 20 percent or more of t�e
total gross floor area, and office, eating and entertainment, a�dlo�- retail sales and service uses
consfitute 10 percent or more of the total grass flaor area and is on property that is (ar meets
tt�e requirements to be} zor��d mixed-use as described by the City ofi For� Wor�h ZonEng
Ordinance.
"Mul�i-family Development Project" is a developmenf proj�ct wh�ch proposes to construct or
rehabilitate multi-�amily residential living units on �roperty that is (or rrieets the requirements to
be) zar�ed multi family or mixed use as c�efi�ed by the Gity af Fort Wortf� Zoning Ordinance.
"Reinvesfinent Zone" is an area designaied as such by fihe City of Fo�t Worth in accordance
with the Property Redevelopment and Tax Abatemen# Act codified in Chapter 312 af the Texas
Tax Code, ar an area designated as an enterprise zone pursuant #o the Texas Enterprise Zorre
Act, codified in Chapter 2303 of the Texas Government Code.
III. MUN1CfPA� PROP�RT'Y TAX A�AT�M�NTS
A. RESID�NTIAL �ROP�RTI]�S �OCATED [N A NE�: FU�� �l�AY�IVi�AIT �O� 5
Y�ARS
�a
. 1. For residential property purchased before NEZ d�signation, a homeowner 5hall be
eligible to apply for a tax abatemenf by meeting f�e following:
a. f'roperty is owner-oecupEed and the primary residence of thE homeowner prior to
the fina! NEZ designafion. Hameowner s�all provide proflf of ownersi�ip by a
warraniy deed, affidavit of heirship, or a probated wi11, and shali shaw pro�f of
primary residence by homestead exemption;. and -
b. Homeowner musf per�arm Eligible Rehabilitation on tF�e property a�Fte�' NEZ
designation equal to or in excess of 3b% af #he Base Value of fhe property; and
c. Prop�rty is not in a tax-delinquent sta��ts when t�e abatement applicatian is
submitted.
�.
2. For res�deniEal property purchas�d after NEZ designation, a hom�owner shali be
eligible to apply for a ta�c abatement �y meeting the foll�wing:
a. Praperty is newly constructed or rehabilitated after the date of final NEZ
designatifln; and
b. Praperty is owner-occ�pied and is the primary residence of the homeowner.
Hflmeawr�er shall provide proof of ownership by a warranty deec�, aff3da�it of
heirship, ar a probated w911, and shall show �roof of primary residence by
t�omestead exemption; and
c. Fflr rehab±lifiated praperty, �ligible Rehabilitation costs on #he praperty shall be
e�ual to or in excess ofi 30% of th� Base Value of the property. The seller or
owner shall provide fhe City information ta sUpport re�abilitatian costs; and
d. Property is not in a tax-delinquent status when the abatement applicatian is
submiited, and .
e. Proper�y is in conformance with fhe City of Fort Worih Zaning Ordinance. �
3. Far investor owned single famiiy property, an investor shall be eligible to apply for a
tax abaiement by meeting the fio�lowing:
a. Property is newly constructed ar rehabilitated �y the in�estor after NEZ
designaiion; and
b. �ar rehabilitated property, �ligible I�ehab�litation costs on the praperty shall bE
equal to or in excess of 30% of the Base Value ofi th� property; and
c. Rroper[y is r�of in a tax-delinquent sfatus when the abatement applicatior� is
submit�ed; and
d. Properly is in cor�farmance witi� the City af Fort Worth Zoning Ordinance.
f�U�YI-�AlI�1�Y ��V��O�[VI�N�' �ROJ��iS �OC�4T�9 i� ,�. N�Z
1. Fufl Abatement for 5 years.
In order to be eligibGe �ar
constructed or reF�abilitated
the following:
a pro�eriy tax a�atement, upon comp[efion, a newly
mulii family develo�ament project in a N�Z must satisfy
At least twenty �ercent (20%} of the total units constructed ar rehabilitated shal[
be affardable {as defned by �he U. S. Department of Housing and Urban
Devefopment) to persons with incflmes at or bel�w eighty percent {80°fo} of area
median income based on family size and s�c� units shall be sE� aside for
persons at ar below $0% of the median income as def�ned by the L1.S.
Department af Housing and Urban De�elopment. City Council may waive or
r�duce the 20% afFordability requiremeni on a case-by-case basis; and
{a) For a muiti-family developrrtent project constr�cted after NEZ designation, the
projec# must provide at leasf fiive (5) residential living units OR have a
minimum Capital investment o� $200,OOD; or
(b) For a reF�abilitation pro�ect, ti�e proper�y must be rehabilitated aft�r N�Z
designatian. Eligible Rehabilitation casts �n th� property shall be at Ieast
30% of the Base Value of fhe property. 5uch Eligible Rehabilitation costs
must come from the rehabilitatian of at least five (5) residential living units or
a minimum Gapi�al fnvesiment of $200,000.
2. 1%-� 00% Abatement afi City Ad Valorem �axes up to 10 years
If an app�icant applies for a tax abatement agreement with a term of mare than fi�e
years, this section shail apply.
A�atements for multi-family development �rajects for up fo 10 years are subjeci to
City Council approval. T�� applicant may apply with the Hausing Department for
sucf� abatement.
Years 1 throuah � af fhe �ax �ba�ement Apreement
Mufti-family projects �shall be eligible for 100% ak�atem�nt of City ad valflrem taxas
for years one through five of fihe Tax Abatement A�reement upon the satisfaction o�
the following:
At leasf fwenty percent (20%) of the tota! units constructed or rehabififated shall be
affordable (as defined by tFie U. S. D�partment af Housing and Urban Development)
to persons with ir�comes at ar below eighfy p�rcent (80%) af area med�an incame
based on family size and such unifs shall be set aside for persons at or below 80% of
the mecfian income as defined by the U.S. Depar�ment af Housing and Urban
Devefopment. City Council may waive or reduce the 2D°/a afFardability requirement
on a case-by-case basis; anr�
a. For a multi-family development project c�nstructed after NEZ designaiio�, th�
prajecf must provid� at least �ve (5) reside�#ial li�ing units OR have a minimum
Capita! Investment of $200,000; or �
b. For a rehabilitation project, fhe property m�tst be rehabi�itated after NEZ
designation. Eligible Rehabilitation costs on the propErty shall be at least 30% of
the Base _Value of �he property. Such Eligible Reha�iEitation costs must come
fram th� rehabilitafion of at least five (5} residentia[ living �r�its or a minimum
Capital Ir�vesfineni ofi $200,OOQ.
Years 6 throuph 10 0� fihe iax A6afement �►areement
M�Iti-family projects shall be eligible for a 1-'f 00°fo abatement of Git�+ ad valorem
taxes for years six th.rough ten af the Tax Abatement Agreement upon the
satisfaction of the failowing:
a. At least iwenty percent (20%) of the fataf units constructed or rehabilifafed shall
be affardable {as defined by the U. S. Depar�m�nt of Housirtg and Urban
�eve[opment) to persans with incomes at or below eigF�ty perceRt (8�%) of area
�4
median income based on family size and such un[ts shall be set asi�e for
persons at or balow 80°/a of the m�dian ineome as defined by the U.S.
Department of Housing and Urban Develapment. City Cou�ncil may waive ar
reduce the 20°/a affordability requirement on a case-by-case has'rs; and
1. For a mulfii-family deveiopment project canstructed after NEZ designatian, ihe
project must provid� at least fiv� {5) residential living unifs OR have a
minimum Capital ln�estment of $200,000; or �
2. For a rehabi[itation project, tF�e property must be re�abilitated after NEZ
d�signatian. Eligible Rehabilitation cnsts on the property shalE be at least
30% of ihe Base Value of #he proper�y. Suc� Eligible Rehabilitation costs
must come from the rehabilitation of af least five (5) residen#ial li���g units ar
a rriinimum Capitai Investment af $200,000.
b. Any other terms as City Council of the City of Fart Worth deems appropriaie,
including, but nat limifed to:
1. uf�lization of Fort Worth companies far an agreed upan percentage of the total
costs for construction contracts;
2. utilizatior� of ce�tifiied minority and women flwned b�tsiness e�terprises fo�- an
agreec! �pan percentage of #he total costs for canstruction contracts;
3. property inspectian;
4. commit ta hire an agreed upon percentage of Fort Wort� residert#s
5. commif to• hir� an agreed upon percentage of Central City residenfs
6. landscaping; .
7. tenanf selection plans; and
8. managernent plans.
C. COM�lt��CfAL, INDUSTRIAL AN9 COiVINiUiVEiY FACILITI�S D�V��,�P1V��Rli
PROJ�CiS �OCATE� I{� A NEZ
1. FuH Abatement for 5 years.
In order fo be eligible for a property tax abat�m�nt, a n�wly constructed or
r�habilitafed commerciallindustrial and community faci[i�ies devefopmeni projecf in a
NEZ must satisfy the foliowing:
a. A commercial, industrial ar a community facili#ies development project
co�structed aft�r NEZ designation must have a minimum Capita! Investmer�t of
$75,000; or
b. Far a rehabilitation project, it must be rehab9litated after NEZ designatian. Eligible
Reha�iGtatiort casts on the proper�y shall be at least 30% of the Base Value af
fhe property, or $75,000, whichever is gr�ater.
2. 1°/n-� 00% Abatement of Gify Ad Valarem iaxes up ta � 4 years
If an appiicant applies for a fax abatement agreement wifih a term af more than f��
years, this section sha[I apply.
Abatement agreemenfs for a Commercial, Industrial and Communify Facilities
De�elapmer�t projects for up to 10 years are su�ject ta City Council approval. The
5
applicant may apply with the Economic and Community Development Department for
such ab�tement.
Years '� throuah 5 of the �"a�c Aba�ement Aareement
Commercial, Endustrial and Cnmmunity Faciiities Develapment pro}ects shall be
eligible for 1 QO% abatement af City ad valarem taxes for the first fi�e years of the
Tax Abatement Agreement upon fh� satisfaction of the follnwing: .
a. A commercial, indusfriaE or a community faciiities develapmeni praject
canstructed after NEZ dasignafion must have a minimum Capital investment of
$75,OOa; or
b. For a rehabifitafian project, it must be rehabiiitated after NEZ desigr�ation. Eligible
RehabiGtation costs on fhe pro}aerty shall �e at least 30% of the Base Value of
the property, or $75,DQ0, whichever is greater.
Years 6 fhrauah 1Q of the Ta�c Ahatemenf Aareement
Commercial, fr�dustrial and Communify Facilities Development projecfs shal! be
eligible for 1°fo-��0% abatement of City ad vaiorem taxes far years six fhrough ten of
the Tax Abatement Agreement upon the satisfactian af #he fallowing:
a. A cammercial, industriaf or a community faciiities devefapment projecf
cor�structed af�er NEZ designation must ha�e a minimum Capital I�vesfiner�t of
$75,000 anc� m�st meet the requirements of subsectio� (c) below ; or
b. For a rehabilifafion proj�ct, it musfi be rehabili�ated after NEZ designation. Eligible
Rehabilitation costs on the property shall be a# least 3Q% of the Base Value of
the praperty, or $75,000, whichever is greater and meet the requiremen#s of
subsection (c} belaw. �
c. Any other terms as City Counci� of #he City of Fort Wor�f� deems appropriate,
ir�cluding, but not fimited to:
1. utilization of Fort Worth companies for an agreed upon percentage of the total
costs far construction contracts;
2. u#i�ization of certified minority and women owned business enferprises far an
agreed upon percer�tage of the totai costs for constructi�n confracts;
3. eommit to hire an agreed upon percentage of Fart Worth resicfents;
4, commit to hire an agre�d upon° percentage of Cenfral City residen#s; and
5. landscaping.
D. NICX�D�USE �EVEL�P1Vi�Ni PROJ�CTS �OCATEA Ild A f���
1. Full Abatement for 5 years.
in ordar fo be eligible for a properiy tax abatement, upon completion, a newly
constructed or r�habifitated mixed-t�se develapment project in a NEZ must safiisfy the
follawing:
a. Residenfial �ses in the praject constitute 20 �erceni or mar� of the total Gross
Flaor Area flf the project; and
t�. OfFice, ea#ing and entertainment, andlor retaii safes and service �ses in the
project constituta 10 percent or more of #he fofal Gross Floor Area of the project;
and
�
{1) A mixed�use developm�nf projecf cansfructed after NEZ designation must
have a minimum Capiiaf Invesfinent of $200,OOQ; or
(2) Far a rehabilitation projeci, i# must be rehabi�ifafed. after NEZ designation.
Efigible Rehabifitafior� costs on fhe property shall be .at Ieasf 30% of the Base
Vaiue af ihe }�roper�y, ar $200,000, whiche�er is greater.
2. 1%-100% Abatemenfi of Cify Ad Valarem taxes up to 10 years
if an appficani applies for a tax abatement agreement with a term of mare tF�an five
years, this sectian shall apply.
Abatements agreements far a Mixed Use Development pro�ects for up to 10 years
are su�ject to City Cauncil appraval, The applicant may apply with fhe Economic and
Community �evelopment Departm�nf for sucn abatement.
Years �I throuah 5 of fihe Ta�c Af�atement Aareemenf
Mixed Use De�elopment projects shali be eligible for 100% abatement of City ad
valorem ta�ces for the firsi five years of the Tax Abater�eni Agr�ement �pon the
satisfaction of fhe following:
a. Residential �ses in the project constitu#e 20 percent nr more of ihe total Grass
Floor Area af the project; and
b. �f�ice, eating and ent�r�air�me�t, andlor r�taii sales and s�rvice �ses in �he
projecf cansiitute 1 a percent or more of the fofal Gross Floor Area of the praject;
and-
c. A new mixed-use �evelopment �roject canstrucfied after NEZ designatian must
have a minimum Capital In�estment of $200,000; or for a reF�abiGtation project, it
must be rehabilitated affer. NEZ designation. Eligible Rehabilitation costs on the
praperty shali be at Eeast 30°!n of the Base Value of th� property, ar $200,000,
which�ver is greater.
Years 6#hrouqh 1a of the iax Ahatement �oar�emeni
Mix�d Use Development projects shal[ be eligib[e for 1-�Oa% a�a#ement of Ctty ad
valarem taxes far years six tF�rough ten of the Tax Abatement Agreement upon the
satisfaction of the following: -
a. Residential uses in the �raject constitute 20 percent ar more af the total Gross
Floor Area of ihe projecf; and
b. Office, eatir�g and er�fiertainment, andlor retail sales anc{ service uses in the
project constitufe 10 perc�nf or more of t�e tflfal Gross Ffaor Area of the project;
c, A new mixed-use development project construcfed after NEZ designa#ioh m�sf
i�ave a minimum Capital �n�estment of $200,000; or for a rehabilitation project, it
must �e rehabilitafed after NEZ designation. Eligible Rehabifitation costs on tFte
proper�y shall be at least 30% of the Base VaEue of fhe property, or $200,000,
whichever is greater; and
d. Any ather terms as City Council of the City of For� Worth deems appropriafe,
includ�ng, but not limited fio:
'f . uti�ization of Fa�E Worth companies for an agreed upan percen#age of the
total casts far construction contracts;
r�
2. utiliza�ion of certified minority and women owned business enterprises tor
an agreed upon percentage af the tatal costs for construction contracts;
3. properiy inspecfion;
4. commit to hire an agreed upon percentage of F'ort Wor�h residents,
5. cammit to hire an agreed upan percentage of Centra� City residents
6. landscaping;
7. tenant selection plans; and
8. manag�ment pfans. �
�, ABAT�MEIV� GUID�L,f �IES
'[. if a NEZ is located in a Tax Increment Financing District, City Cauncil will determine
on a case-by-case basis if the tax abatement incentives in Secfion lil will b� offered
to �ligible �rojects. Eligible projeefis must meet all efigibility requirements specified in
5ection II�.
2, ln or�er to be eligible to apply for a tax abatement, the property ownet-Ideveloper
m�st:
a. Not �e delinqu�nt in paying property taxes for any property owned by tf�e
ownerldeveloper ; and
b. Nat F�a�e any City of For� Worth liens tiled againsi any �roperty owned by the
applicant pro�erty own�rldeveloper. °Liens" include, buf are not limifed to, weed
liens, demolition liens, board-uplopen structure liens and pa�ing liens.
3. Properties under a eontract for deed a�-e not eligib�e for tax abatemenf.
4. Once a NEZ prope�ty owner of a residential property (inclt�ding multi-famiiy) in the
NEZ safisfies tf�e criteria set forth [n Sections 111.A, E.�, and E.2. and appfies for an
abatemenf, a property owner m�st enter into a tax abateme�t agreement with the
City af For� Worth. The fiax abafement agreement shafl autamatically terminaie i� fh�
property subject ta fhe tax abatement agreement is in viofaiian of the Cify of Fort
Wort�'s Minimum Building S�andards Code and the owner is convict�d of such
vi�olation.
5. A tax abatement granted under th� criteria set forth in 5ection ]ll. can only be
granted once for a property in a NEZ for a maximum term of as specified in the
agreement. Ifi a proper�y on which tax is being abated is sold, the City wiif assign the
tax abatement agreement for the remaining term once �he nerru owner submits an
application. -
6. A proper�y owner/deve[opar of a multifami�y development, commercia�, industrial,
community facilities and mixed-use developm�nt project in the NEZ who desires a
tax abatement under Secf�or�s III.B, C or D must:
a. Satisfy the criferia set tartF� in Sections IiLB, C or D, as appficable, and Sec#ions
IlI.E,1 E.2; and E3. a�d
b. Fiie an applicatian wifh fhe Housing Department or the Economic and
Cammunity Development Depa�tmer�t, as app�icable; and
E:3
c. The property owner must enter into a tax abatemenf agreem�nt with the City of
Fort Wort�. In addi#ion to the other terms of agreement, the tax abatement
agreeme�t shall provide fhat the agre�ment shafl automaticaily terminate if the
owner receives one cflnvict�an of a violatio� of the Ci#y of Fark Warfh's Minimum
Building Standards Cade regarding the property st�bject to the abatement
agreement during the term of the tax abatement agreement; and
d. Ifi a property irt the NEZ on which tax is being abafed �s sold, the naw awner
may enter into a tax abatemertf agreement on fhe property for the remaining
ferm.
�'. APPLICAT�AN �'��
1_ The appiicafion tee for reside�tial tax abatemen#s go�erned under Sectian [II.A is
$25.
2. The applicat9on f�e for mu�ti-family, commerciaf, �ndustrial, comm�nify fac[lities and
mixed-use devela{�ment projects governed under 5ec#ions I�I.B, C.1 and D.1, is one-
half of one percent (0.5%) of the proposed project's Capital fnvestmenf, nat to
exceed $1,000, The application fee wilf be refunded upon iss�ance of certificate of
-fir�al occupancy and ance the property owner enters into a tax abafement agre�ment
with th� City. Ofherwise, the Ap�lication Fee shall nat be credited or ref.unded to any
party for any reasan.
IV. �'��'IdifAIVE�S
�o. �LICI�L� RECI�I�NTSIP�QPERiI�S
1. In order to be eligible to apply for fiee waivers, the property ownerldeveloper must
a. Not be de[inquent in paying praperty taxes f�r any property owned by the
ownerldevefoper ar appficant; and
b. Nat ha�e any City liens filed against any praperfy owned by the appiicant property
owner/deveioper, including but not �imited to, weed liens, demoEition liens, board-
uplopen structure liens and paving liens.
2. Praperties under a contract far deed are nof eligibl� for de�elopment fee wai�ers.
3, fn order for De�efopment Fees andlor Impact Fees to be waived for �ew construction
or rehabilitation projecfs located in the NEZ, a properiy owner mus� submit an
application ta the City.
,�pproval of t�e aa�alica�ion and waiver af the fees shall' not be deemed �v be
appraval of an� asneci of the �roPecf. �efore cons�ruc�ion. #he annlicant musfi
�nsure that ihe proiect is located in the correct zonina dis�rict. -
�. �EIIELOPii��N7 F��S
Or�ce the Application for NEZ Incentives has been appro�et! by the City, the foilowing
fees for services performed by the City ofi Fort Wflrth for projects in the NEZ are waivetf
for new construction projects or rehabilifation projects that expend at least 30% of the
Base Value of the prop�rty on Eligible Rehabilifation cosis:
�7
1. All building permit relafed fees (including Pians Review and Inspectior�s}
2, Plat application fee (including concept �lan, pr�liminary plat, final p�at, sY�ori form
repiat} .
3. Board of Adjustment appiicatian fee
4. Demolition #ee
5. Structure moving fee
6. CammUnity Facilities Agreernent (CFA} application f�e
7. Zoning applicafion fee
8. Sfreet and ufility easemant vacaiion applica#ian fee
Ot[�er development related fees t�ot specified above will be considered for approval by
Cify Caur�cil on a case-by-case �asis.
C. [Nf}�AC� ���
1. Single family and multi-�amily residentia! developm�nt prajects in the NEZ.
A�atomatic 9 DO% waiv�r of water and wastewater impact fees will be applied,
2. Comm�rcial, industrial, mixed-use, or community facility de�elopment projecfs fn the
NEZ.
a. Automatic 140°/Q waiver of wafe�' and wastewater irrtpact fees up to $5�,000 ar
eguiva[ent to two 6-inch meters for each commercial, industrial, mixed-�se or
community facility development project.
�. If the project requests an impac� fee wai�ar excaeding $55,000 or requesting a
waiver for larger andlor more than two 6-inch meter, ihen City Gounci! approva! is
required. Applicant may requesi t�e additional amount of impact fee waiver
through the Housing Department. .
1!. R�LFcAS� O� CIiY L[�I�S
The folfowing City liens may be releaset� for eligible properties or projects in a NE�:
A. W�ED LII�NS
The fal{ow�ng ar� eligible to apply for release of we�d lfens:
1. SingJe unit owners pertorming rehabilita#ion on their properties.
2. Builders or developers constructing new hames on vacant lats.
3. Owners performirtg reF�abilitation on multi-fiamiiy, commercial, industrial, mixed-use,
or community faci�ity properties. �
4. Developers constr�cting new rri�[fi-family, commercial, industrial, mixed-use. or
commur�ify facility develo�ment projects. �
�. �lE�!lOLIi�ON Ll�NS
10
Builders or developers develaping or t-ehabilitafing a property are eligib[e to apply far
release af demolition liens for up to $30,000. Release of demolition liens in excess of
$30,Op0 is subject to City Council approval.
C. BOARDoUP10P�N SYRUCTlJRE L.IENS
The following are efigible to apply for reiease af board-u�lapen s#ructure liens:
1. Singfe ur�it owners perFofming rehabilitation an fiheir proper�ies.
2. = Bui[ders or dev�iapers cansfructi�g new singf� family homes on vacant lots.
3, Owners performing rehabilitatian on mulfi-family, commereiai, inc�tastrial, mixed-use,
or community facility properties.
4. Devefapers constructing multi-family, commerciai, industrial, mixed-use, or
community facility projects.
D. F'AVIIVC �I�NS
The foilowing are eligible to apply fior release of paving fiens:
�. Single unit owners performing reha�ilitation on their properties.
2. Builders or developers construcfing new homes on �acant lots.
3. � Owr�ers per�orming reha�il�tatio� on m�iti-family, commercial, industrial, mixed-use,
or community faciGty properties.
4. � Developers consirucfing mufti-family, cnmmercial, . industrial, mixed-use, or
communffy facility projects.
�. ELICf�LE R�CIPI�NiSI�ROPERT�ES
1. ln arder to be eligible to apply far re�ease of Cify liens, the �rope�y ownerltEeveloper:
a. musf not be delinquent in paying property taxes for any property owned by
the ownerldeveloper
, b. must not ha�e been subjecf �o a Building Standards Commissian's Order of
Demolition wher� the property was dem�lished witF�in th� last five (5) years; and
c, must not �a�e any City af Fot� Worth liens fifed agains# arty other properEy owned
by the applicant property ownerldeveloper. "Liens" includes, but is not limited to,
weed liens, d�molitian liens, f�oard-uplopen structure liens and pavin.g liens.
2. Properties under a contract fpr d��d are not eligible for re[ease of City liens.
VI. �ROC�DURA�. STFPS
A. APF�I�lC�►�fOfV SU�MISSIO[d
The ap�alicant far NEZ incentives under Sections I11.A, B, C. D., IV, and V must
complefe and s�bmit a City af Fort Worth "ApplicatEo� far NEZ lncentives" and pay
the a�propriate applicafion fee to the Housing Depar�ment or the Econamic and
Community Deveiapment Depar�ment, as appficable.
11
2. The applican� for incentives under Sections I11.C.2 and D.2 must also com�lete and
submit a City of �art Worth "A�plication for Tax Abat�ment° and �ay the appropriate
application fee to the Economic and Community Development Department, The
appiication fee, r�view, evaluation and appro�al wi[I be go�emed by City of Fort
Worth Tax Abatemenf Policy Statement for Quaiifying �e�elapment Projects.
�. GERYf�1Cr4TiOfVS FOR AP��1CAilONS UIVD�I� S�CT'IONS IIl.A, B, C.1, D.'I, Il�+,
AW D V
1. The Housing D�partment will rev�ew the application for accuracy ancf
completeness. Once complete, Hous�ng Department wif! certify eligibility of the
application based on the criteria set forth in 5ection III. A, B, C.1, D.1, 1V, and V of
this policy, as a�plicable, Once an application is cer�ified, the Housing D�partment
wili inform appropriate depa�tments adminisiering the incentives abou4 the certified
application. An a�ientation meeting with City departmer�ts and the applicant may be
schedufed. Tf�e departments inclu�e:
a. Hausing Depar�ment: property tax abatement for residential praperties and multi-
family developmenf projects, release af City fiens.
b. Economic and Community Dev�lopment Depar�ment: property tax abatement far
cammercial,
indusfrial, cflmmunity facilities or mixed�use de�elopment p�-ojects.
c, Develo}�ment Departmenf: de��lopment fee wai�ers.
d: Water Department: impact tee waivers.
e. Ofher appropriate �epartments, if applicable.
2. Once Development bepartment, Water De�artment, Ecar�amic and Community
De�ebpment Depar�menf, ar�dlor other appropria#e department receive a certified
appficafion from the Housing Department,_ each departmentloffice s�all fill aut a
"Verification af NEZ Incentives for Certifed NEZ Incenfi�es Ap}�lication" and reiurn it
to the Housing Department for record keeping and tracEci�g.
C. J�l�P�1Cl�lT[ON R�1/lEW AND �VALLlAT10[d �DR APPLICA�IORlS
1. Praperty Tax Aba#ement for Residential Properties and Multi-family Develapment
Projects � .
a. For a completed and certified appiication for no more than five years af tax
abatement, with Cauncii approval, the City Manager shal� execute a tax
ahatement agresment with the applicant.
b.. Far a completed and certified mulfi-famiiy development praject application for
more tF�an five years of tax abatement:
(1) The Hausing Department will evaluate a completed and certified applicatian
based o�:
(a) The project's increas� in the value of the tax base.
(b) Casts to fhe Ci#y (such as infrastructure participation, etc.).
{c} Per�ent of constr�ctian contracts commifted to:
(i) Forf Worth based �irms, and
{ii) Minor�ty and Women Owned Business Enterprises (MNIIBEs).
(d) Other items w�ich may be negotiate� by the Ciiy and the applicant,
�2
{2) Car�sideratEon by Co�ncil Committee.
Based upon the outcome of the evafuatio�, Housing Department may present
t�e applicafion to the City CounciPs Economic Develapment Commifte�.
Should the Housing Departmen# pres�nt the appficafion to the Ecor�omic
�evelopment Committee, the Cammit�ee will consider the appiicati�n at an
open me�tir�g. The Committee may:
(a) Approve the application. Staff wi[I then incorporate the application ��to a
tax abatement agreement wf�ich will be sent to the City Counci! with #he
Committe�'s recommendation tn approve the agreement; or
(b} Request modifications to �fie application. Housin� Departrnent sfaff will
discuss the suggesfed modifications with the applicant and then, if the
reques#ed modifications are made, resubmii the madified applicatian ta
the Committee for consideratian; or
{c) Deny fihe app�ication. The applicant may appeal the Committee's findir�g
by requesting the City Counci� #o: {a} disregard the Committee's finding
and (b). instrucf city staff to incorparate the appfieaiion, into a tax
abatement agreement for fut�re consideration by the City Co�ncil.
(3) Consideratian by the Ciiy Council
The City Counc�l retains sole authority to approve nr deny any tax ahatement
agre�ment ar�d is under n� obligation to approve any tax abatement
applEcatio� or ta�t abatement agreemen#. The City of Fori Worth is under no
obligatian to provide tax abatemer�t in any.amount ar �alue to any appficant.
c. Effective �ate for Approved Agreements
All tax abatements approved by the Ciiy Council will become ef�ecti�e on
Jantaary 9 of the year following th� year in wf�ich a Certificate of Occupancy {CO)
is issUed for the q�taiifying develapment praject (u��ess otherwise specified in the
tax abatement agreement). Unless otherwise specified in the agreement, taxes
fevied during the construction of th� p�'oj�ct shaEl be due and payable_
2. Property Tax Abatemer�t far Gommercial, fndustriaf, Commur�ity �acilities, and
Mixed-Use De�elaprrtent Projects
a. For a completed and cer�ified appiication for no more than five years of tax
abafement, wit� Council approvai, fhe City Mar�ager shall ex�cute a fax
abatement agreement with the applicant.
b. ��r a compieted and cer�ified applicafion for more than five years of tax
abatemer�fi:
(�} Tha Economic artd Cc�mmunity Deveiopment Department wiif evafuafe a
completed and c��iified application based on:
(a) The project's increase in the value of the tax base.
(b) Costs to the City (such as intrastrucfure par�icipafion, etc.).
{c} Percent of constructian contracts committed ta:
(i) Fart Wnrth based firms, and
(ii} Minority and Women owned Business Enterprises {MIWBEs).
(d) Other ifems which may be negofiated by the City and the applicanf.
13
(2) Considerafion by Cou�cil Cornmittee
Based upon the outcome af the evaluafian, the Economic and Communi#y
Develapmen� Departm�nf may present the applicatian ta the City Council's
Economic Development Commiffee. Should the Econ�mic and Commun�fy
De�elopment Department present the application to the Economic
Developme�tt Committee, the Cammiftee will cansid�r the applicatior� at an
open meeting. The Commi�tee may:
(a) Approve fhe applicatian. 5taff will ther� incorporate th� applicatian into a
tax abatement agreement whici� will be sent to the City Council wifh the
Cammittee's recammenclatian to approve the agreement; or
(b} Requesf madifications �o the appfication. Ecanomic and Cammunity
De�elopmen# Department sfaff wifl discuss the suggested modifications
with th� applicant and then, if the requested modifications are made,
resubmit the modified applicafian fo the Committee for consideration; or
(c} Deny t�e application. The ap�licant may appeaf the Commiffee's finding
by requ�sting t�e City Council fio: (a) disregard #he Comrnittee's fnding
and (b) instruct city sfaff to incarporat� the application inta a tax
abatement agreement �or f�ture consideration by the City Councif.
(3) Consideration by the City Council
The City Council retains sofe authority to approve or deny any tax abafement
agreement and is under no � obligation to approve any tax abatement
application or tax abatement agreemen#. Th� City of Fort Wort� is under na
obligatian to provide tax abatemer�t in any amount or value to any applicant.
c. Effective Date for Approved Agreements
Afl tax abatements aAproved by the City Councii will became effecfii�e on
.]anuary � of the year folfowing #he year in which a Certificate of Occupancy (C�)
is issued for the qualify[ng develapm�nt project (�niess ott�erwise specified in the
tax abatement agreement). llnless otherwise specified in the agreement, taxes
levied during the construcfion of the proj�ct shafl be due and payable.
3. Developmenf �e� Waivers
a. For certified applications of development fee wai�ers thaf do not require Council
approval, the Development De�artment wiil review the cer�ified appficant's
application and grant appropriate incentives.
For certified applications af d�velopment fee waivers that require Counci!
appro�al, City staff wil[ review the certified aPpficant's application and ma[ce
appropriate recommandations to the City Council.
4. Impaet Fee Waiver
a. For certifed applicafions of impact fee waivers that do not require Council
approval, the Water Department will review the ceriifiec! applicant's application
and grant appropriate incen#ives.
14
b. Far cer�ified applications af impact fee waivers that require Council appro�al, the
Water Departmenf will review the certified applicant's appGcation a�d make
a�propriate recomm�ndations �a the City Cauncil.
5. R�leas� of City Liens
For certified applications of refease of Ci#y liens, the Housing Department will release
the appropriate liens_
VII, QTk�ER RU�.L�S PCRTAlP11NG TO �ROP�R�'YiA,X �48�►�"�M�Ni
�►. I��CAPiUR�
lf the terms af the tax abatement agreement are not met, the City Cauncil has the r�gf�t to
cancel or amend the abatement agreement. In the ever�# af canceElafion, t�e recaptu�e of
abated taxes �hall be limited to the year(s} in whicFt the defa�lt accurred nr ct�ntinuecf.
�. ICVS�ECilOI� AAlD �l1VANCIAL VERlF�CATtON �'O� MULYI��A�III�Y, C�IVIIIIfY�RClr4�1
INDLlST'RIAL, COIV�MUNIiY �ACf�IiI�S ANl9 �IIIX�D�US� D�V���PfNERIi
��ZOJ�C75
TFte terms of the agreement shal! include the City of Fort Worth`s Tight to: (1) review and
�erify the applicant's financiai 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 inspaction of
the project in=each year during the lif� of the abatement to �erify complia�ce with the
terms ofi the tax abatement agreement. .
C. �VA�,UArT'ION �OR MULiI���MI�Y, COMM�RCIA�1 [AIDL�SYRIA�, CO�illilVlIJNITY
F�4C[LIYIES Af�D MfXED-US€ DEV€LOPMFcfdT PR�J�C7S
Upon. comp�etian af construction of th� facilities, the City shall no less than annua[ly
e�aluate each projecf recei�ing abatement to ir�sure compliance with the terms of the
agre�ment. Any incidents of non-compliance will be reparted to the City Cauncil.
On or before �ebruary 1st of errery year during the life of �he agreemenfi, any
ir�dividual ar engity receiving a tax abatemeni from the City ofi �ork Y�ort� shall
pro��de informafion and documentafion which details fF�e prope�ty owner's
compliance with t�e ierms oi the respecti�e agreemenfi and shal[ cerfiify thafi fifte
owr�er is in compliance with each applica6le term og the agreemen�.'�ailure �o
reporf �his infarmation and to provide the required cer�ification by the abo�e
deadline shall result in cancellation of agreemen� and any iaxes a�ated irt fhe
prior year being due and payable.
D. EFF�CY OF SAI��, AS5lCI�1V��Mi OR L�AS� OF ��OPERTI(
If a property in fhe NEZ on which tax is being abai�d is sold, #h� new owner may en�er
into a tax abatement agreement on the property far the remaining term. Any sale,
assignment ar lease of t�e property which is nat permitted in the tax abat�ment
agreement results in cancellation of the agreement and rec�pfure of any taxes abated
aft�r the date on wf�ich an uns�aecified assignment accurred.
15
V11I. OTH�R 1NC�NTIV�S
�4. Plan reviews of proposed de�elopment projects in the NEZ wili be expedited by the
Developmenf Department.
�. The Gity Cauncil may add the fo��awing incentives to a NEZ in tf�e Resolution adopting
the NEZ:
1. Municipal sales tax ref�nd �
2. Hamebuyers assistance
3. Gap f[nancing
4. Land assembly
5. Conveyance of tax foreclosure properties
6. Infrastruciure improvements
7. 5upport for Low Income Housing Tax Credit (LIHTC) applications
8. Land use incentives and zoning/6uifdiRg code exemptions, e.g., mixed-use, density
bonus, parking exemption
9. Tax fncrement Financing {TIF}
� 0. Public Improvement Districf (PID)
11. Tax-exemp# band financing
12. New Model Blocks
13. Loan guarantees
14. Eq�ity i�vestments .
15. �ther incentives t�at will efFectuate the ir�tenf and purpnses of NEZ.
�6
Exh�b�t B
3113 Eastcrest Court Lot 3, Block 2 Eastcrest Addition
E�bit C
Praject Description
Singie Family Residence
90% Brick Veneer
15�0-190Q square feet
3 �edroomsl2 Baths
Two car garages
Arched Windows at Front oi House
Frant Yar� Landscaped
Microwa�e with huilt-in Vent-A-Hood
Wood Bu�ning Fire Place
Built-in Security System
Computer Area with CPU & Printer with a dedicated telephone fine
Vaulted C�iling in Master Bedroom and Living F�oom
�rench Doors
Separate Tub/Shower in Master 8athroom
Garden Tub in Mater Bathroom
� �i��.T�ORTH �
Applicatzon No. �� � �. � � � �
CITY UF FORT'W(�RTH
� NEIGHB4F.H04D EMPQ'VSJERM.�NT Z()NE (NEZ) PR4�RAM
_ _ _ — — — pR4JECT CEB.TIF'ICA.TION �.PPLxCATION
FC�RM � FOR �l'3�ESTaR O'WNERS (�INGLE F.�MILY ONL�
L A�'PLICATYOT3 CHECK LYST
Please sub�nit the_ falIowing documer�tation vvith each property reques#ed:
� A comple�ed"�ppl�ca�io�.�;�b�n � ��� � ���: = �
_ b.
•� �.{'[]_: ..: A list �f-all�.proper.tie� owned..by the ap�Ii.cai�t in �c,rt Wart1a
- , � - �=� . -
� Application �ee of ���5:�}n (far ta� abate�zient applications �anly) -
❑ Proaf of owners�ip, such as � warraniy deed, affida.vit af heirship, or a pzobated rvil� �R
evir�emca of site•cantrol, su�h.as opiian to buy - � ��
❑ '�it�e absb'ract=of i�e �raperiy {�pt�ona�}� � ` • � '
For Rehabilitation P�oiects Oanlv: ` �
�❑ �'or a. project zn the planning stage, please submit a comt�leted sei of Rehabilitation
. �-fl�eznode�i� Plan and a�ist of eli�ble rehabYlitatio�i.��sts*:�(�or applicaiions o#'ta� �•-
�bat�me�ts apd d�velop�ment fee vvaivers for rel�ab� projects only)
[] Once a pro�ec� is corr�pleted, please s�bmit proaf ci��I:he eligible rehabilitaiion costa* snch
as invoices, contracts, ar recexpts. (for applicatio�s a� tax abatem�nts oniy) �
'� Bligibte rehabilitation includ�s an1� pJxysical improvements ta reaI gropeziy. It does N'OT in6lude p�rsonal
property s�ch as fur3uture, appiiances, equipm�mt, and/or suppiies. Tata1 elzgibie zeha�i.Iitation cos�s sl�ll eqval
,� to oz exceed 30°!0 of tha Tar,rant County Appraisa.� District (TAD).appraised vatue of the struchue dx�ring the
� yeaz xehabilitatiox� accvrs. -
� � �. —� — — • — — — — — —� — — —� — —! — —• — -n .....
. . . � �,
I II. Applicanf / AGTNT IN��RMAT`Ii�I�T � . ��
I 1. Applicax�t: � = 2. Contact Person:
_ ��� � �,�e� �� �f���n�� , �,��v��A G��'�'
3, � Address: �
���/� '7.���d$7d�t1 ST" ��i '7",����� .
Sireet . ity. � Siaie, Zip .
. 4i Pho�e no.: � 5. Fax 1'�To.:
� �l � e �7�~��I.� . . �17-&'7'� T$�.- �
6. Er�a�iI: �f��� fl ��• f---------� ��s
��T�G�"�. Y: - -
7. Agenf (i� any) -
S: Addressi � � - - - � �
. St�reet - - - - Ciiy -
9�. Phane na.: ^� '- 10. Fa.z No.: �
x L Emai1:
�tate. Zip
�� Ff yv�z Aee�I further zn%rbzat�on or clarff catiQr�, please cantact Chun-I Lu at {817} �71-735� � or
Bea Cura at (81'T} 871-8436. � �
�
1
�
� FORT �ORTH . � l
III. PROPERTIr ELIGYBIL�T3I
�. Please ]ist down the addresses and IegaI descriptions c�f the properiy where you are applying
foz-1�IEZ incentiv�s and ot�ier proper�ies you own in FQrt'P��ari�i. Attacb, metes a�d hounds
description i�' na address or legal description is available.
Table 1 Property� Ownersi�ip
A.ddress
' (Project "Location)
Zip + Leg� Descriptian
� Code Subdivisi,an Lot Na.
.)
_ � .. �-- - - - -
� Ij��t`��° �� -- - �� .
I �p .
�
Black No.
I. . . _ � ��' �s�����" ��:� - .� ��s
�
� � . � � � �
-. � - - +. - �- - - � :- - . .
I - - I---. �- -- - I= . - I
+ I � l � I 1
{please attach additzonaT sheets ai paper as neer3ed.) ' � •
��. For e�ich� properties Iisted in Tabt��2;•please che�ek the b�xes below to�inciicate�ii:
� there are taxes due; or Jt��� �
� there are Cziy Iiens; or � j� �
� pou have beez� subject to a.Bnilding Standards Commission°s �rder of Demolition vcrh�re the
property �cvas damo�ishecl vsrithin �,e Iast �ve years. j,� p •�
Tab�le � Properfy 'I'a�es anc� CiEy Liens -
' .� Address Propex�#y � CiLy Liens an Praperty
. . .'°: ,,;}:. -. ' :. : �; Taxes � xW�ed i, Ba�ird-up/Open :,�..Demoiition•= Pavi�ng �- Or.der bf•.
. � ;4. ... . - ` . .. . •_�.,. ' - :: `:Due .- ~ ,� �iens "Stucture Liens �� _Liens � :�� Lie�as � Demolitian.�
. I ❑ I ❑ � ❑ ❑ I ❑ � �
=��: '' . �:; ` �; `- `� , ` , � -�I: �a - "� �.�;� '�.:;..J � �; � ` '. ` 0 �: , _ _ —_ ' .4t, ` � . `��. —0 - ❑ -
<, .. , .- _.::�l� . �,�-� �•`. ' • � , , Q '. :+ � ( �.
_ ' ., ❑ ^ � � T ,_� . . �---, .� �.. : • � I � �
� �.- . - , _ � �: + � . _ � •. - . ❑ . � ❑ + 0
� . . � � - 0 - C]- � - 0 -. - .- ❑ -- _ 0 0 '
�.ti .
� _ __ ._ _ . .- ,_� _ �- -
—� � _ s� v c., � _ xy � ❑ � ❑ j�'� .
�
� ' . � —� -- � � � I � � � � ,
,{Please attach additaonal sheets af paper as needeci.) �
3. po yau own ather pxoperties ur�der other nam�es? ❑ Yes,�io
�If Yes, pl.ease specii'y .
4. Does the propo�ed development co3nform vvith City af Farf'Worth Zoni�g? �[] Yes
.� V� S. Is�thzs property under a con�ract for deed? Q Yes � j�I�o
2
❑ No
, '�•.
= d ��R'T�ORTH
6. Has the construetian on the praperty been completed or is it in �he pZanning sta.ge? �Vhat
type of construct�an? : -
n Consfnzct�on Cornbleted �l �]�nder Constniction �Tx�. P2annin� Sta�e
❑ New C.onsfir�aciion ��ehab ❑ New Cflnstnic�zan�] Rehab �New Consf.ruct�on [� itehab
7. If the construction vn the property has bean campleted �hen f�is agplication is snbznitteci,
whe�i was fhe work done? �
8. � If it zs a rehah property, daes (ar �w�ill} the rehabiliiat�on work* �lone on the proper�y` ec�ual
to at least 3�Q°/a 4f fhe Tarrant Caunty Appraisal Di�r'ict (TAD) assessed vaiue of the
sfructure during the year reiiabiIitation (remodeled) occurred? ❑ Yes ❑ No
'�Only physica� ixnprovexnents to real property is eligible, D� NOT include personal praperty
such as farni�zre, appliances, equipmen�; and/or supp�ies,
PV.�. �:,tINC�+NT�'�i'ES — — -- — -- — — — — — . ` [ . y _
. � . �.,'; .
_ � 1..V�hat°incentzves are you aPpIying for?_ •..' .� .
� Mun.icin�a� Prot�ertv Tax Abafem��xs .�. • , - .
- � Deve�onment Fee Waiv�rs - �
�` .All bz�ilding pezmit xelated fees (i�,.cludi�g Plans Review and Inspec�ions)
� How rnuch is y�u� total development casts? $., j.��'�.� f� �
� I� o w z n u c h i s #� a. e � a t a l s q u� r e � o o fi a g e o f y o ur pro�ect? ���� s quaTe faet .
. � �
�--� �. Plat application fFie (includzzxg concept plan, prelzrninary p�at, final pla�, shQri farm�replat)
� Soarci ofAdjusfxiient appli�atian fee
❑ Demoliiion %e �
_ " [] Structure moving £ee ' '
.. , � Co�rununit�: Faciliiies:Agreement..(�FA) appli�ation �f�e... , . .. v . .- . -: �. . -,_ .
. � . . .` , . , . . .
�oning appiicatxon fe� •
, , � Street and u�.lify easement
Tmnact Fee 'Waivers •
� Impact fee waiver ��
. Meter Size ,��� How many m�ters`� ��y� _ .'
: Releas� nf Citv Liens
❑ Weefl liens _
❑ ' Boaxd. up/open structure liens, . � �
� ` ` � De�o�itio� liens �
� • ❑ �'avin.g liens — — — — — — — —• -- — � . -• —� — — -
�
�
�
�
i
F�ORT �ORTH
�
V. ACKNOWLEDGIVIENTS ' - - - - - - - - - - - - --
Z hereby cert%fy tha� t�e in�'ormation provided zs true and aecurate to the best afrrzy ku�vvlad.ge. I hereby
acknowIedge that � have recezved a capy af NEZ B�.sic Izac�ntives, which gavezns �he
abateznenis, fee�w�y��s and release of City lier�s, �.nd that any �iIOLATION of fhe t� o£�the NEZ
Basic Zncentives ox MISREp�,�ENTATI�ON shall constitute grounds for rejecrion of an appIication or
te�min.a.tion of incentives at the discretion of the City.
I understaz�d �hat the approva� of%e waivers and other inceritaves shalI not be deem�d to be approval of
any asp�Gt of�ha p�o�ject. S t2nderstancl �,�.t I���sponsi��e ix� obtaining required pexrnits and
inspections froxn the City and in ensurir�g th� pzoject is locateci in the carrect zoning disfrict.
T agrec to provic�e any additional information for detenz�i��zzg elYgibzliiy �.s requested by �e City.
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Electror�c versian of this fornl is available by r�quesi. Please caIl S 17-$7-1-73 S 1 to rec�uest a co .
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For Office Use Only - _ -_ _. -. __ _ -- --- �
--�pp3ication No.. .�
TA.D ID . S�C ��� l'n which NE�? , '�j� Canform tivith Zonin ? j� QNo
� � b '�D.Yes
� � Car�tract for deed? . � Yes = � -" -
�� Na Type7 [�f .New cons#rt�ction ❑,Reh�ab
Construction Gom�ple�ion date? ❑ Before NEZ .p,.f�er NEZ
� Ownership � � y�s � � No
Rehab at or higher t�an 3Q%7 � ye5 � Nd Consisteni with the NEZ plan? �C Yes
Tax cturent on this. ro 4 � N�`
p p�'� ��'�s ❑ No Ta.� curreia.t on other ra erti�s?
City �i�ns on this pi-operiy? w,. g.� � Yes�� � No ,� � -
Ciiy li�ns on•iither pz-aperties2
� Weet� Iiens � yes � �o � �
Waerl Ziens ❑ Yes [ No
� Board-np/open slructnze �iens ❑ Yes �j No � o �
Baard-up/apen structure liens 0 Yes [� Na �
.� Demolition liens ❑ Yes k Na �
0 DeirtoIition lier�� ❑ ��� �]/ No
� Paving liens � yes � No �
I'aving liens ❑ Yes f� No
� Order of demolztio� ❑ Yes [7� No � prd� p� d�molitian
Certi�ed7 ❑ Yes � No
❑ Yes ❑ No Certi�ed by . Date certzfica�ion issued? ���� f��
If i�c�t certified, rea�on - f �
Referred to: ❑Economic Deve�opzxreni C7Housing �Develo ment
P �,Water ❑Code �'I'PW
Revrsed august zs, zaoz � - - - - .. _ - . . _. ..�
4
City of ' 1�'ort T�orih, Texas
Mayor a�d �ou�ci[ Commu��c�tson
QATE REFER�NC� NUMB�R LOG NAME PAGE
si� aroz C�'9 923� � o5NEZ � � of 3
SUBJECT AUTHORIZATION TO ENT R INTO TAX ABATEMENT AGREEMENTS WITH THE
�ORT WORTH H�USING �INANCE CORPORATION F�R THE DEVE�OPMENT O�
S.IXTEEN SINGLE-FAMILY HOMES FOR THE EASTCREST SU6DIVl5{ON LOCATED
IN THE STOP 51X NEIGHB�RHOOD EMP�WERMENT ZONE
RECOMMENDATION:
[t is rec�mme�ded that the City Cauncil:
�. Approve the Fort Workh Housing Finance Corporation {FVIIHFC) applicafian fot Municipal F'rap�rty
Tax Abaiement for t�e Eastcrest 5ubdivision; and �
2. Finci that the statam�nts set fortY� in the reciials of the attached Tax A�atemen# Agreements (tt�e
Agr�ements) with FWHFC are true and correct; and � _
3, Authorize t1�e City Manager tQ enter info tax abatement agreernents with FWHFC for ths development
af sixfeen s�ngle-family homes in tf�e Eastcrest Subdi�ision located i� the Stop 5ix �Neighborhood
Empowerment Zone (NEZ), in accordance with the NEZ Basic Incentives:
�ISCU.SSION:
Th� FWHFC is the develaperlowner af the Eastcrest Subdivision in the 4704 Black af East Berry 5treet
and Eastcrest Court located in NEZ No. 1:
The FWHFC appfied for mUnicipal pro�erky tax abatement under the NEZ Basic Incenti�es (M&C G-
�3208R daied June 5, 2002, M&C G-13580 dated April 2, 2002, as amended, and M&C G-13fi62R
dated .fuly 23, 2��2, as amended). The Housing Department has re�iewed the a�plication and certified
that the property me�ts the eligibility crit�ria to receiv� NEZ m�tnicipai property tax ahatement. Tk�e
NEZ Basic incentives offers a�ive-year munici�al proper#y tax abatement of tt�e increased value of
impro�eme�ts fo a developerlawner af a�y new horr�e constructed within a NEZ.
Upon executian a# the Agreements, the total assessed value o# each home in the Eastcrest Subdivisio�
used for caiculating mur�icipal prap�rty tax wili be frozen for a five-year period, starting on January �, of
the y�ar faliowing the year in which the hame is so1d, at tF�e pre-improvement value of each lat as defiri�d
by the Tarrant Appraisal District (TAD) on January 1, 2002, as foflows:
e Pre-lmprovement TAD Vaiue of Improvements $ -0-
�. Pre-Improvement TAD Val�e of Land $1,ODa�per lat .
� Total Pre-Improvement TAD Value $1,OOD per lot
Ciiy of .�'o�t �orth, 2"exas
Mayor an� Cauncil Corr�municatior�
DATE R�F�RENCE NUMBER L�U NAME PRGE '
91� Q102 � .��� 9�35 � o5N �z � z of 3
, sus���7 AUTH4RI�ATlON TO ENTER INT� TAX ABATEMENT AGREEMENTS W{TH THE �
. FORT W4RTH HOUSING FINANCE CORPORATION FOR THE DEVELOPMENT O�
51XTEEN SfNGI.�-FAMILY HOMES FOR THE EASTCR�ST SUBDIVIS�ON LOCATED
lN THE STOP SIX NEfGHBORHOQD EMPOWERMENT ZONE � J
i Address
3100 Eastcrest Caurt
314� Eastcrest Court
3�Q4 Eastcrest Court
� 31(]5 Eastcre�t Caurt
� 31 QS Eastcrest Court
31 Q9 Eastcrest Court
3112 Eastcfest Court
. 3113 Eastcrest Co�rt
3116 Eastcrest Court
� 39 ZO Eastcrest Caurt
312�4 Eastcrest Court
3128 Eastcrest Caurt
3132, Eastcrest Court
3133 Eastcrest Court
3136 Eastcrest Court
3'f 37 Eastcrest Court
Leqal Descri�tion
Lot �D, Block 1, Eastcrest Addition
Lat 6, Block 2, Eastcrest Addition �
Lot 9, Block 1, Eastcrest Addition
f�o� �, Blaelc 2, Eastcrest Addit�on
Lot 8, B1ack 1, Eastcr�st Addi#ion
Lot 4, Block 2, Eastcrest Acidition
I�ot 7, Blocic 1, Eastcrest Addition
�ot 3, Block 2, Eastcrest Addi�ion
Lot 6, Biock 'f , Eas#cr�st Addition
I�at 5, Block i, Eastcr�st Addition
Lot 4, Block �, Eastcrest Addition
Lat 3, Block 1, Easterest Addition
Lot 2, Block 1, Easfcrest Addition
Lot 2, Block 2, Eastcrest Addition
Lat 1, B1o�k �, Eastcrest Addition
Lot �, Block 2, Eastcr�st Addi�ion
FWHFC expects to �ompleie construction on or befnre June 3Q, 2Q03, and sell the sixteen homes ta
new owners. Upon the sale af each hame by �WHF�C, the Housing Depariment staff wil{ present th�
proposed assessment of the tax a6ateme�t agreemen#s to tne City Council for appra�al if the n�w
owner r�eets all efigible criter�a as �stated in �the NEZ Basic Incentives.
�WHFC will invest $1,�00,000 to construct sixteen single-family nomes in fhe Eastcrest Subdivision._
The location o� the propased developmeni,..typical elevatior�, and project description are attacned ta fF�is
Mayo� and Council Communication. The municipal property tax on the improved value is esiimated at
$558 pe� house per year or a total o# $44,6�0 over the five-year period. -
On August 13, 2002, the abo�e �ro�osal was en�orsed by the Ecanomic and Community Development
Committee for City Counci! appraval.
The Eastcrest Su�divis9on is lacated �n COUNCIL DISTRICT 5.
City of Fort YT�or�h, T'exas
M� or �nd Counc�� �Gammu�ic�t�or�
�
DATE REFERENC� NUMBER LUf� NAME PAGE � ,
9110l02 ��'� 9235 � 05NEZ � 3 of 3
sus.►ECT AUTHOR1ZATlON TO ENTER 1NTO TAX ABATEMENT AGREEMENTS WITH THE �
FORT WORTH HOU5I.NG FINANCE CORPORATIDf� FOR THE DEVELOPMENT OF
S{XT�EN SINGLE-FAMILY HOMES FOR THE EaSTCR�ST SUBD1VfSION LOCATED
IN THE STC�P SiX NEIGHB�RHOOD EMPOWERMENT ZONE �
F{SCAL 1NFC}RMATI{3NlCERTI�ICATION: �
The Finance Direc�or certifies that�this ac#ion will have no materia! effect on �ity funds.
RR:n
Submitted for City Manager's
Of�ce Uy: ,
Raid Rector
Originating Department Head:
]erome Walke�'
Addition�l Tnformation Coutact;
3erome Walker
F�[JND ' ACCOCJNT �
� {to)
� �
6140
7537 � (frgm)
7537 �
�
CENTEIt ` AMOUNT
CXTY 5�CRETAIftY
1
�
I APPROVED 09/10/02
I`
I .
�
1