HomeMy WebLinkAboutContract 28121C!`fY ���R�T��°� � U �
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STATE OF TEKAS § "�'
COUNTY QF TARRANT §
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TAX ABATEMENT AGREEMEI�IT FOR PROPERTY L�CATED IN A
1�IEIGHBORHOOD EMPO�VERMENT ZONE
This TAX ABATEIVIENT AGREEMEIlCT ("Agreement") is entered znto by and
bc�tween the CYTY OF FORT WURTH, TEXAS (the "City"}, a home ra�e municipal
carporation orga�ized under the laws of the State af Texas and acting by and t�rough
, its duly authorized Assistant City Manager, and the Fort Worth
Housing Finance Co:rporation, a non-profit housing develapment
corporation, ("Owner"), acting by and through Jeroz�ne Walker, xts duly
authorized Owners' Representa�ive. , �
The City Council af the City af Fort Warth ("City Counci�") hereby finds and the City
and �wner hereby agree that t�e iallowing statements are true and correct and constitute the
basis upon which the City and �wner have entered into this Agre�ment:
A. Chapter 378 of �he Texas Local Government Code allows a municipality to create
a Neighborhood Empawerment Zone (NEZ) if the municipality determines that
the creation of the zane would prornote:
1. The creati�n of affordable hausing, including manufactured housing in the
zane;
2. An increa�e 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 reliabilitation of affordable housing in the zane.
B. Chapter 378 of the Texas Local Government Code provides that a municigality
that creates a NEZ, rnay enter into agreements abating municipa.l property taxes
on property in the zone.
C. On July 31, 2001, the City adopted basic incenti�es far property ownars wha own
property located in a NEZ, stating that tl�e City elects to be eligible to participate
in tax abatement and includirtg guidefines and criteria governing tax abatement
agreements entered inta between the City and various third parties, titled "NEZ
Basic •Incen�aves" ("NEZ Yncentives"}, which is attached hereto as Exhibit "A"
and hereby made a part o� th.is Agreement for all purposes.
D. The NEZ Incentives contains appropriate guidelines and criteria governing tax
abatement agreements �ta be entered into t�y the City as conternplated by Chapter
312 of the Texas Tax Code, as amended (the `�Code"). .
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E. On September 11, 2001, the Fort Wortfi City Council adopted Ordinance No.
14767 (the "Ordinance") eskablishing "Neighbarhood Empowerment
Reinvestment Zone No. 1," City of Fort Worth, Texas (the "Zone").
F. Owner owns certain real praperty locatad entirely within the Zone and that is
more particularly d�scrih�d in Exhibit "B", attached hereto and hereby made a
part of this Agreement for all putposes (the `�Prernises").
G. Owner ar its assigns plan to construct the Required Impro�ements, as defined in
�ection 1.1 of this Agreement and as described in Exhibit "C", on the Premises to
be used for as a singie-family residence that will be owner occupied. (the
"Project"). �
H. Or� September 2$, 20d1, Owner submitted an applicarion for NEZ ineentivas and
tax abatement tn the City conceming the contemplated use of th� Premises (the
"Apptication"), attached hereta as Exhibit "D" and hereby made a part of Ehis
Agreement for all purpases.
T. The City Council finds that the contemplated use of the Premises, the Required
Improvement�, as defined in Sectian 1.1, and the terms of this �greement are
consistant with encouraging development of the Zone in aceardance with the
purposes �or its creat�an and are in compliance with the NEZ Incentives, the
Resolution and other applicable laws, ordinances, rules and regulations.
J. The City Cvuneil finds that the terms of Chis Agreement, and th� Premises and
Required Improvements, satisfy the eligibility criteria af the NEZ Incentives.
K. Written notice that the City intends ta enter into this Agreement, alang with a
copy of this Agreement, has been furnished in the manner prescribed by the Cade
ta the presid�ng afficers af the governing bodies of each of the taxing units in
which the Premises is located.
NOW, THEREFORE, the City and Owner, for and in consideration of the terms and
conditions set forth herein, do hereby contract, covenant and agree as follows:
1. OWN��'S CO'�'E1�ANTS.
1.1. Real Prouertv Imnravements.
Owner shall consiruct, or cause to be constructed, on and within the Premises
certain improvements consisting of a single family residence, (x) af at least 1,200 square
feet in size, and (ii) having a constructian cost upan completion af $ 6a,0a0 including site
development costs but such minimum cons�ruction costs shall be reduced by any
constructian cast sa�ings (callectively, the "Required Tmprovecnents"}. Owner cha11
pro�ide a survey of the completad horne showing Required Impr�.v�m�nts �,��re �i�e I
home is sold. The parties agree that the final surv�y shall be a part ;�� fitt�5 �1������nt. ��d
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sha]I be labeled Exhibit E. Minor variatians, and more substantial variations if approved
in writing by b�t1z of the parties to this Agreement, in the Requir•ed Impro��ments from
th� description pravided in the Ap�lication for Tax Abatement shall not constitute an
Event of Default, as defined in Section 41, provided that the conditions in the first
sentence of this Seckion 1.1 are met and the Required Improvements are used for the
purposes and 'zn tk�e manner described in Exhibit "D".
1.�. Campletion Da�e af Required Imnravements.
Owner co.�enants to substantia�ly complete construction of all of the Required
Improvements within two years from the issuance and �eceipt of the building gernut,
unless delayed because of force maje�re, in which case the two years shall be extended
by the number of days comprising th.e specific %xce majeure. For purposes of this
Agreement, force majeure shall mean an event beyond Owner's reasonable control,
including, without limitatian, delays caused by adverse weather, delays in reeeipt of any
required permits or approvals from any gavernmental authority, or acts of God, fires,
strikes, national disasters, wars, riots and material oz` labo:r reskrictions and shortages as
determined by the Ciiy of Fort Worth in its sole discretion, w�ich sha�l not be
unr�asanably withheld, but shall not include construction delays caused due to purely
�inancial matters, such as, without lim'itation, deiays in the obtaining of adequate
financing.
1.3. Use of Premise�
�wner cavenants that the Required Improv�m�r�ts shall be constructed and the
Premises shall be sold so that it is contin�ously used as the primary rc;sidence af the
Home Buyer in accardance with thc description of the Project set forth in Exhibit "D". In
addition, Owner cavenants that througk�aut the Term, the Required Impro�ements shall
be operated and maintainec� for the purposes set forth in this Agreement and in a manner
that is consistent with the general purposes of encouraging developinent or
redevelopment of the Zone.
�. ABATEMENT AMOU1�iTS, TERMS AIiTD CO�DITIONS.
Sub�ect to and in accardance with this Agreement, the City hereby grants to �wner a real
praperty tax abatement on the Premises, the Required Itnpravements, as�specifically provided in
this Section 2("Abatement"). "Abatement" of real progerty taxes only includes City af Fort
Warth-imposed taxes and nat taxes from flther taxing entities.
�.1. Amflunt of Abatement.
The actual amount af the Abatement grantad nnder th�is Agreem�nt shall be
based upon the increase in value oi the Premises and the Required Impravements over
their values nn ranuary 1, 2002 and according ta tlte Tarrant �ppraisal District, this
arnount is $1,000 the year i� which this Agreement was entered ir�t�:
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One Hundred percent {�OQ%) of the increase in value from the
constructian o� the Required Impravements.
If the tota� construction costs of the Required Improvements are less than as
prr�vided in Section 1,1 of this Agreement, except that such minimu�n constructian costs
shall be reduced by construction cost savings, Owz�er will not b� eligible. to receive any
Abatement under this Agreement.
�.� Terrn of Abaternent.
The term of �he Abatement (Che �"Term") shall begin on January 1 of the
year fallowing the calendar year in which the Required Iznprovement is sold to a
Hame Buyer ta be used as its primary r�sidence ("Beginning Date")_a�td, unless
sooner terminated as herein provided, shall end on Decernber 31 ianmediately
preceding the fifth (5�h) anniversary of the Beginning Date. Upon the sale to a
Home Buyer, City shall certify that the Required Impro�ements have been
completed in satisfaction of the tez�ms of this Agre�ment.
However, the Compiiance Auditing Term will begin c�r� the dat� this agreerrient is
executed and wil� end on the expiration date of the Term.
2.3. Protests Ov�er Anprais�,�or Assessments.
Owner shall have the right to protest and contest any or all appxaaisals or
assessments of the Premises andlor improvements thereon.
�,4. Abatement Ata�lication Fee.
The City acknawledges receipt from Owner of the required Abatement
application fee af twenty-five dollars ($25.OQ).
3. RECORDS. CERTIFIGATIQN AND EVALUATION OF PRO,IECT.
3.1. I�pe�tiqn af Premises.
Between the executian date of this Agreernent and the last day of the Term, at any
time during construction oi the Required Improvements and following r�;asonahle notice
to Owner, the City shall have and Owner sha11 provide aceess to the Premises in order for
the City to inspect the Premises and evaluate the Required Improvemenks to ensure
compliance wi�h the -terms and conditions of this Agreement, . Owner shall coaperate
fully with the City during any such inspection andlor e�aluatian.
3.2. Certif eatian � � --
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Property Owner, and Home Buyer once the property is sold, shall �ertify annua�ly
ta the City that it is in compliance with each applieable term of this agreement. The City
shall have the right to auclit at the City's expense the financial and business recards af
Owner that z'elate to Che Construction of the Project and Abatemer�t terms and conditions
(collectively, the "Records") at any tirt�e during the Co�npliance Aurliting Term in order
to determine compliance with this Agreement and to calculat� �the correct percentage af
Abatemant available to �wner. Owner shall make aIl applicable Records available to the
City on the Premises or at anather locatian in the City following reasonable advance
notice by the City and shall otherwise coop�rate fully with the City d�ring any audit.
3.3. Provision of Information.
On or before Fe�aruary 1 following the end of every year during the Compliance
A,uditing Te�rn and �f requested by the City, Owner shall pro�ide infortnation and
documentation for the previaus year that addresses Owner's compiiance with each of the
terms and conditions of this Agrecment for that caiendar year.
Failure ta provide all info�-matian within the control of Owner required hy thi� Section
3.3 shald eonstitute an Event af Default, as defined in Sectian 4.Y.
3.4. Det��mi�tion af Comnliance.
On or before August 1 of each year during the Compliance Auditing Term, the
City shall make a decision and rule on tha actual annual percentag� of Abatement
available to Owner far the �ollowsng year of the Term and shall notify Owner of such
decision and ruling. The actual percentage oi the Ahatement grainted for a given year vf
the T�rm is therefar� based upon Owner's cflmpliance with the terms and conditions of
tf�is Agreement during the previous year of the Comp�iance Auditing Term.
4. EVENTS OF DEFAULT.
4.1�, De�ned.
Unless otherwise �pecified herein, �wner shall be in d�fault of this Agreement if
(i} Owner fails ta canstruct the Required Improvements as defined in Sectian 1.1; {�i) ad
valorem real property ta�ces with respect to thc Premises or �he Project, or its ad valorem
taxes with respect to the tangible personal property locat�:d on the Premises, become
delinqu�nt and Owner does not timely and �roperly follow the legal groceduzes for
pratest and/or contest o� any such ad �alorem real property or tangible personaZ property
taxes or {iii} Home Buyer does not use the Prernises as primary residence once the
abatement begins (collectiveiy, each an "Event of Default").
4.2. l�otice to Cure.
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1.
Subject ta Section 5, if the City deternunes that an Event of Default has occurred,
Che City shall provide a written notice to Owner that descri�es the nature of the E�ent of
Default. Owner shall have ninety (90} calendar days from the date of receipt of this
written notice to ft�lly cure or have cured the Event of Default. Tf Owner rea5anably
belie�es that Owner will require additional time to cure the Event�of Default, Owner shall
promptly notify the City in writing, in wY�ich case (i) after advising Che City Counci� in an
open meeting of Owner's effarts and intent to cure, Owner shall have one hundred eig�ty
(180) caIendar days from the original date of receipt of the written notice, or (ii) if Owner
reasanably believes that Owner will require more than one hundred eighty (180) days to
cure the E�ent of Default, after advising the City Council in an open meeting of Owt�er's
effarts and intent to cure, such additional time, if any., as may be o�fered by the City
Council in its sole discretion,
4.3. Termination for Event of Default and Pavme�� af Lipuidated Dama�.
If an Event of Defa�lt which is defined in Sectian 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 acknawledges and agrees that an uneured
Event of De�ault wil� (x) harm the City's economic dev'elapment and redevelopment
efforts on the Premise5 and in the vicinity af the Premises; (ii) require unplanned and
expensive additional administrative �versight and in�olv�ment by the City; and (iii)
athez'wise harm the Ciky, and Owner agrees that the ano.ounts of actual damages therefrom
are speculati�e in nature and will be difficuIt or impossible to ascertain, Therefore, upon
termination of this Agreement for any Event of Default, Owner shall not be eligibl� for
the AbaCement %r the rema'ining 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 pa.id to the City
in the absence of this Agreem�nt. The City and Ownex agree that thi� amount is � a
reasonable approximaEion of actual damages that the City will zncur as a result af an
uncured Event of Default and that this Section 4.3 is intended to pro�ide the City with
campensation for actual damages and is not a penalty. This amount may be recovered by
the City through adjustmen�s made to Owner's ad vaIarem property tax appraisal by the
appraisal district that has jurisdiction over the Premises. Otherwise, this amaunt shall be
due, owing and paid to the City within sixty (ba) days fallawing the effecti�e date of
termination of this Agreement. In the event that all ar any partion of this amount is not
paid to the City within sixty (60) days foilowing the effective date af termination of this
Agreement, Owner shall also bc liable for all penalties and interest on any outstanding
amount at the statutory rate far delinq��nt 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.�. Termination at Wiil.
If the City and Owner m�atually determine that the developrnent or use af the
Premises or the anticipated Req�ired Improvements are no longer appropriat� or feasible,
or that a higher or better use is pref�rable, the City and Owner may Cerminate khis
Agreement in a written format that is signed by both parties. In this event, (i) if the Tenrn
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has commenced, the Term shall expire as of the effective date of the tezmination of this
Agreement; (ii) there shall be no recapture of any iaxes previflusly abated; and (iii}
neither party shall have any further rights ar abligations hereunder.
5.
6.
City:
EFFECT OF SALE� OF PRF�SES..
The Abatement granted hereunder shall vest only in Owner and cannot be
assigned to a new owner af al] or any portion of thc Premises and/ar Required
Unprovements without the prior written consent of the City Council, which consent shall
not be unr�asonabjy withheld pro�idec� that (i) the City Council finds that the praposed
assignee is financially capable af ineeting the terms and conditions of this Agreement and
(ii) the praposed p�archaser agrees in writing to assume all terms and conclitions of Owner
under this Agreement. Owner may not otherwise assign, lease ar convey any af its rights
under this Agreement. Any attempted assignment without the City Council's prior
written consent shall canstitute grounds for termination of this Agreement and the
Abatement granted hareunder folIowing ten (10) calendar days of receipt of written
natice fram the City ta Owner,
In no event shall the a�iatement term be extended in the event ai a subsequent saie
or assignment.
I�OTICES.
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: '
Owner:
City of Fort Worth
Attn: City Manager
1000 Throckrnorton
Fort Worth, TX 76102
i. NIISCELLAI�TEOUS.
i1. Bands.
Fort Worth Housing Finance Corporation
100Q Throckmorton
Fort Worth, Texas 76i02
The Required Improvements wilI not be financed by tax increment bonds. This
Agreement is subject to rights of holders of outstanding bonds of the City.
7.�. ContTiets of Interest.
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Neither the Premises npr any af the •Required Improvements covered by this
Agreemem are owned or leased by any member of the City Council, any membeX af the
City Planning or Zoning Commission or any member o� the governing body of any taxing
units in the Zane.
7.3. Conflicts Between Documents.
In the event of any conflict between the City's zoning ordinanees, or other City
ordinanc�s or regulations, a�d this Agreement, such ordinances or regulations shall
control. In the event of any conflict betw�en the body of this A�eement and Exhibit
"D", the body of this Agreement shall control.
7.4. Future Annlication.
A portion or all of the Premises andlor Required Improvements may be eligible
for complete oc partiat exemption from ad �alorem taaces as a result of existing law ar
future legislation. This Agreement shall not be � canstrued as evidence that such
exemptions da not apply to ttze Premises anc�lar Requirad Improvements.
i.�. Citv Cc�uncil Authorization.
This Agreement was authorized by the City Council thraugh approval of Mayor
and Council Communication No. an , which, among other
things, authorized th� City Manager to execute this Agre�rnent on behalf of the City,
'�.b. Estoppel Certificate.
Any party hereto rnay request an estoppel certiiicate from another party hereto so
Iong as the certificate is requeste�i in connection with a bona fide business purpose. The
certificate, which if requested will be addressed to th� Owner, s�all include, hut not
necessariiy be limited to, statements that this Agreement is in full force and effect
without default (or if an Event of DefaulC exists, the nature of the Ev�nt of Defauit and
eurative actian taicen andlor necessary to effect a cure), the remaining term of this
Agreement, the le�els a�d remaining term of the Abatemenk in effeet, and such other
mattcrs reasonably requested by the party or parti�s to receive the certificates.
7.7. Owner Standin�.
Owner shall �e deemed a proper and necessary party in any litigation questianing
or challenging the validity of this Agreement ar any of the underlying laws, ordinances,
resoIutions or City Council actions a�thorizing this Agreement, and Owner shall b�;
entitled to intervene in any such litigation.
�.$. Ven�e and .Turisdiction.
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� This Agreement shall be �construed in accordance with the laws of the State of
Texas and applicable ordinances, rules, regulations ar policies of �the City. Venue for any
action under this Agreement shall lie in the State District Caurt of Tarrant County, Texas.
This Agreement is performable in Tarrant County, Texas
7.9. Recardation.
A certified copy of this Agreement in recordable form shall be recorded 'm the
Deed Records of Tarrant County, Texas. .
7.10. Severabilitv.
If any provision af this Agreement is held to be invalid, illegal or unenforceable;
kk�e r!alidity, legality and enforceability of the remaining provisio�s shaIl nat in any way
be affected or impaired.
7,11. Headings Not Controllin�.
Headings and titl�s used in this Agreement are for reference purposes only and
shall nat be, deemed a part of this Agreement.
'�.12. Entiretv of A�reeme��.
This Ageeement, including any exhibits attached hereto and any documents
incorparated herein by reference, cantains t�.e entire understanding and agreernent
between the City and Owner, their assigns and successors in int�rest, as to the matters
cantained herein. Any prior or conternporaneous oral or written agrcernent is hereby
declared null and void to the extent in conflict with any provision oF this Agreement.
This Agreement shalI not be amer�ded unless executed in writing by both parties and
appraved by the City Council. This Agreem�nt may be executed in multiple
counterparts, each of which si�all be considered an original, but alI af which shall
ca�stitute one instrument.
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I.G.J
EXECUTED thi�� da of � �� 2002 b the Cit af Fort Warth
Y > Y Y �
Texas.
EXECi7TED -this �day of �,�� ���,.., b� � , 2002, by Fart Worth Hausing
Finance Cozporatian.
CITY OF FORT WORTH:
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By. / � �l �
Assistant City Manager
FORT WORTH HOUSING FINAl�TCE
CORPORATI01�:
�/. � r �"��`�
J Je �ne C. Waiker
ATTES'�:
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B ���` '_ � -� �, ' _
y. �ity Secretary ' - -. - - - - -�-
AT"I'EST:
:
APPRQVED AS FORM AND LEGALITY:
By: : -=- —
Cynthia Garcia �
Assistarit City Attarney
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M&C: ti , �. � r .
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STATE OF TEXAS §
COUNTY OF TARRANT §
,�J BEFORE ME, the undersigned authority, on this day personally appeared
/[�fr� .�e[°'7c��, Assistant City' Manager of the CITY OF F�RT WORTH, a municipal
carpora�ion, known to me to be the persan and of�cer whose name is subscribed to the foregoing
instrurnent, and acknowl�dged to me that the same was the act of the said CITY �F FORT
WORTH, TEXAS, a municipal carporation, that he was duly authorized to perform tY�e same by
apprapriate Mayor and Cauncii Comrnunication of the �Gity Cauncil of Che City of Fort Worth
and that he executed the same as the act of the said City for the puaposes and cflnsideration
therein expressed and in the capacity therein stated. '
GIVEN UNDER MY HAND AND SEA-L OF OFFIC`E this f�day of
���-l�� , Zaoa. .
��,��.. ..t3�--
Natary Pubiic i� and for
the State of Texas
�'o �P �r� �A�Ne�
Natary's Printed Name
�.�� �p�� ROSEL�►A BARiVE5
�_° ��� NOTARY PUBLIG
����w �t�te�of Texas
"��,`oF�,.�Comm, Exp. 03-31-2005
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STATE OF TEXAS §
COUNTY OF TARRANT � §
BEFORE�, the undersigned authprity, on this day personally appeared� wG�.-, � C F t-�-�I �teY
��� of the Fort Worth Housing Finance Cozporation, a Texas non- prafii corporation,
� 5 n ro me to be the person whose narne is subscribed to the foregoing instr�inent, and
acknawledged ta me that he executed the same far the purposes and considera�ion therein
expressed, in the capacity therein stated and as the act and deed af the Fart� Worth Housing
Finance Corporation. •
GIVE UNDER MY HAND AND SEAL QF OFFICE this ���4 day
of .� �� �..-�� � � , 2002.
� �� a� . ,
Natary Public in and for _ �..,.,-: -,,,,:,,-_��
the 5tate of Texas ,�-� --_:._.:_....-�_ _��_ �
� ,�s��e�; WILI.IAMHE1MiT :
. NfY COMMI55ipN EXPIHES �
- ~'' �= Jarnla�y,z7� 20�3 „
Notar 's Printed Naxne ���`"�'��'�`'��"��� � ��
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Exhibit A: NEZ Incentives
Exhii�it B: Property Description
Exhibit C: Projact description including kind, number and location af the propased
improvements.
Exhibit D: Apglication: (NEZ) Incentives and Tax Abateinent
Exhibit E: Final Survey
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CITY a� �'ORT INORT}�
fVEIGH�ORHOOD EMP4WERM�Ni' ZON� (NE�} BAS1C INCENYIVES
Adopfed 6y the Fart Worfh City Council on July 39, 2009 (M&C G93208 R)
Amended by the Fort Worfh City Council an Apri! 2, 2D02 (M&C G-93580), July ,23, 2002
(M&C G-13682)
f. G���RA� PURP05� AAID O�J�CT1V�5
Chapte� 378 of fhe Texas Locai Go�ernmenfi Code aflows a m�nicipality to create �
Neighborhood Empowerment Zone (NEZ) when a"...municipality determines tl�at the creation
of the zone would prornofe:
(� ) the creation of afFordable housing, inc[udEng manufactureci housing, in fhe zone;
.(2) an increase in eeonamic de�elopment in ihe zane;
{3) an increase En fhe quality of social services, education, or public safiety provided to
residents of the zone; or '
(4) fhe rehabiiitation of affordable housing in the zar�e."
Tne City, by adopting the follawing incentives, wili promote afFordable F�ousing and
economic c�evelopment in the NEZ. NEZ incerttives will not t�e granted after the NEZ expires as
d�fined in the resolutio� designating the NEZ. �'or each NEZ, the Cify Council may appra�e
additional terrns a�d incentives as permitt�d by Chapter 378 of #he Texas Local Gavernment
Code or by City Council resolution. However, any tax abatement awarded before the expiration
of a NEZ shall carry its ful[ term according to its tax abatemenf agreement a}�proved by the City
CoUncil. .
As mandated by state law, �he property tax abatement under fhis policy app�ies to fhe
owners o� real propErty. Nothing in the pol�cy shall be consirued as an ob�igaiion hy �he
Ci�y of I�ort laVor�h to approve any tax abatement application.
II. ���If�iTIOf�S
"Abafemertt" means the �ull or partial exemption from Cfty �f Fort Worth ad �alorem taxes on
eiigible pro}a�rties for a period of up to 10 y�ars and an amount af up to 900°/fl of the increase in
appraised value (as reflected on the certified tax roll of the appropriate counfiy appraisa! district}
resulting frorn improveme�ts. Eligib�e properties m�[st be located in the N�Z.
"Base Ualue" is the vaf�e of the pro�erky, excluding fand, as determined by the Tarrant County
Appraisal D�strict, during the year r�habilifation occurs.
"Building Standards Comm_ission" is the commission created under Sec. 7-77, Arficle fV.
Minimum Buiiding Standards Code ot the Fo� Worth City Code.
"Capifal Inuestmenf" includes only real properiy impravements such as new faci[ifies and
structures, sife improvements, facility expansion, and facilify mod�rnization. Capitaf fnvestment
does NOT include land acquisition costs ancE/or any existing improvemenfs, or personaE praperty
(such as machinery, eq�ipmenf, antllor sUpplies and inventory).
"City of Forf Wotth Tax Abatement Policy Statement" means the poliey adop�ed by City Council
on �ebruary 29, 2000.
"CommerciaUlndusfrial Development Project" is a developmertf project which propases fo
construct or rehabilitate commerciallind�strial �acilities on property fhat is (or m��ts the
requirements to be) zoned cornm�rcial, industrial or mixed use as defined by the City of Fork
Worth Zoning Ordinance.
"Communrfy Facilify Developmenf Project" is a development project whic� prQpasEs to construct
or rehabilitate community �facilifies on praperty that allows such use as defined by the Cify of
Fnr� Worth Zoning Ordinance.
"Elig�ble Rehabilifatian" includes only physical improvements to real property. E[igible
Rehabilitation does NOT ir�clude p�rsonaf property {such as fum[ture, appliances, equipment,
andlar supplies). �
"Gross Flaar Area" is measured by taking i�e outside dimensions of fihe building at each floor
le�el, except that portion of the basement used onfy for utilities or storage, and any areas within
the building used far off-street parking,
"Minimum Bullrling Standards Code"�is Article IV of th� Fort Wor�h City Code aaopted pursuant
to Texas Local Governmenf Code, Ghapters 54 and 214.
"Minorify Business Enferprise (MBE)" and "Women Business Enferprise {WBE)" is a minority or
woman owned business tha# has received certi�Fcation as either a ee�tified MBE or cer�ifiec�
WBE by eifiher the North Texas Regional Certification Agency (NTRGA) or the Texas
Department of Transportatian (TxDot), Highway Di�isi4n.
"Mixed-Use Develapment Projecf" is a devef�pment project whicF� �ro��ses to construct or
rehabilitate mixed-use �acilities in which residentiaE uses constitute 20 perceni or mare of the
tatal gross floar area, and ofFice, eating and entertainment, andlar r�tail sales and service uses
cons#ituf� 10 p�rcent or more of the total gross floor area and is on property thai is (or meets
the requiremen#s tn be) zaned mixed-use as dascribed by the Cif�r of Fort War�h Zoning
Ordinar�ce.
"Multi-family Development Project" is a development project which proposes ta canstrucf or
rehabiiitate mu[ti-family residentiaf living units on �roperty fhat is {or meets the requiremer�ts to
Eae) zaned muiti-family or mixed use as defned by the City of Fort Wor�h Zoning Ordinance.
"Reinvesfinent Zone" is an ares designated as such by the City of Fort 1Nor�h in aceordance
with fhe Property Redevelopment and Tax Abatement Acf codified in Chapter 312 of the Texas
Tax Code, or an area designated as an enterprise zone �ursuant to the Texas Enterprise Zone
Act, codified in Chapt�r 2303 af the Texas Government Cade.
�
!�.
MUNICIPAL PF�OP€RTY TAX A�AiEIV[�Rl7S
��SID�N�[A►L PRO��R�I�S L�Cr4TED IM A NEZ. FU�� ABATENi�N� �OR 5
Y�AI�S
2
�. For residential praperty purchased before N�Z designatian, a hom�owner shall be
efigible ta apply for a tax abatement by meeting the following:
�.
a. Property is owner-occupEed and fhe prim�ry resic[ence af the homeawr�er prior fo
the fina[ NEZ designation. Homeowner shall �rovide proof of awnersF�ip by a
warranty deed, affdavit of heirship, or a probated will, and sha[I show proaf of
primary residence by homestead exempfion; and
b, Homeowner musf perfarm Eligible Rehabilitation on the prop�rty after NEZ
designation equal to or in excess of 30% of fhe Base Value of the prop�rfy; and
c. Property is not in a tax-d�linquent status when the abatement a��lication is
submifted.
2. For residential pro}�erty purchased af#er NEZ designation, a homeowner s�all be
eligible to apply far a tax abatement by meetir�g the following:
a. Property is newly construeted or rehabilifated aft�r tY�e date of final NEZ
� designation; and �
b. Prnper#y is owner-occupied and is the primary residence ofi th� F�omeowner.
Homeowner shall p�-ovide proof of ownership by a warran#y deed, affidavit ofi
Y�eirsl�ip, ar a probated wil�, and shall show proof of primary residence by
hamestead e�emp�ion; and
c. For reha�ilitated propsrty, Eligible Rehabilifation costs o� the praperky shall be
equal ifl or in excess af 30°/n of �he Base Value of the proper�y. Th� seller or
owner shall provide the City information to suppart rehabilitatian costs; and
d. Property is not in a tax-delinquent stat�s when t�e abatement applicaiior� is
submitted; and .
e. Praper[y is in confiarmance with the City of Fort Warth Zaning Ordi�a�ce. �
3. �or ir�vestor owr�ed singla famify prop�rty, an invesfar shall be eligible to apply for a
tax abatem�nt by meeting the foliowing:
a.
b.
e.
d.
Properky is newly construct�d or rehabilitated by the investor after NEZ
designatian; and
For rehabifi�ated praperty, Eligibl� R�habilitation costs an the property shall
equal to or in excess of 30% of the Base Value of the properly; and
Property is not in a tax-delinqueni status when fhe abatement application
submitted; and �
Property is in conformance with the Ciiy of Fnrt Worth Zaning Ordinance.
be
is
fwUl�iI�F�4M1�.Y A�V��OPIV��R�T PROJECT'S LOCAi�� IA� �► N��
'i . Full Abafement fior 5 years.
En arder to �e eiigible for a property tax aba�ement, upon campletion, a newly
cans#ructed or rehabili#ated multi-farnily de�eiopment project in a NEZ musf satisfy
th� fiollowing: ,
At least fwenty percent {20%) of the total �nits constructed or rehebilitated shall
be affordable (as defEned by the U. S. Department of Ha�sing a�d Urban
De�efopment} to persons with incames at or below eigE�fy percent (SO%) of area
median income based on family size and such units shall be set aside for
persons at or below 80°/n of the median income as defined by the U.S.
3
Department of Housing and Urban Development. City Council may waive or
reduce th� 20% afFardability requirement on a case-by-case basis, and
(a} For a multi-�amily deve�opment project constructed after NEZ designation, the
projecf must pravide a# feast fi�e (5) residential iiving units OR hav� a
minimum Capital Investmenf of $2Qp,00Q; or
(b} Far a rehabilitation projecf, tF�e property must be reF�abilitated after NEZ
d�signation. Eligible Rehabilitation costs on the property shal! be at least
3D% of the Base Va�u� of the proper�y_ Such Eligible Rehabifitation costs
must come from fhe rehabi�itation of af least five (5) resider�tial IEving units or
a minimum Capita] lnvestment af $2DO,D00.
2. 1%-100% Abatement of City Ad Valorem taxes up to 10 years
Ifi an applicant applies for a tax abafem�nt a�re�ment with a terrxz ot more fhan five
years, this s�ction s�all apply.
Abatements for multi-�family deveiopment projects far up ta 10 years are subject ta
City Council appraval. The applicant may apply witf� the Ho�sing Depar�ment for
such abafement.
Years 1�hrouah 5 0# the Tax Aba�ement Aareemen�
Multi-family prajects shall be eligible for 1 a0% abaiement of City ad valorem taxes
far y�ars one #hrough five of fhe Tax Abaf�ment Agreemenf upon tne satisfaction af
the following:
Ai least twenty percent (20%) of the fotal u�its construct'�d or rehabiiitated shali be
affordabie (as defined by the U. S. Department nf Hou�ing an� Urban Development)
to persons wit� incomes at or below eighiy percent (84%) of area median income
bas�d on fiamily size and such units shall be set aside for persons at or belaw 8a% 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-�y-case basis; and
a. For a multi-family de�efopment p�o�ec# constructed after NEZ designation, the
}�roj�ct must pro�ide at feast fi�e (5) residential [iving units OR hav� a minimum
Cap[tal In�estm�nf of $20D,Oflq; ar
b. For a rehabilitation project, the property musf be rehabilitated aftar NEZ
designatian. Eligible Rehab[litatian cas�s fln the property sha�! be at �east 30% of
the Base.Value of the praperty. Such Eligible Rehabi[itation casfs must come
from the rehabilitation of at least fi�e (5) residential living units ar a minimum
Capifal In�estment of $200,000. �
Years 6�F�rouah 10 of the Ta�c Abatemen# �4qreeme�t
Mul#i-fiamily projects shail be eligible for a 1-10�% abatemenfi of City ad valorem
taxes for y�ars six through ten of the Tax . Abaterrrent Agreement upon the
satisfaction af the following:
a. At feast twenty percent (20%) of the total units constructed or rehabilitated shall
be affordable (as ��efineci by the [J. S. Depar�ment of Housing and Urban
�evelopment) to persons with incomes at or b�low eighty percent {8Q%) of area
4
median income based on family size and such units shall be set aside for
persons at or below 8a°!o of the median income as defined by the �.S.
Department afi Housing and Urban DEvelapment. Cify Ca�ncil may waive or
reduce the 20% affordability requirement an a case-by-case basis; and
1. For a multi-family development projecf constructed �fter NEZ designation, the
project must provide at least five (5) res�tiential li�ing units OR have a
minimum Capitaf lnvestment of $240,000; or
2. For a rehabllitation }�roject, the properiy must be rehabilitated after NEZ
designafian. Eligible Rehabilitation costs on the property shall be at leasf
30% of fhe Base Va�ue of fhe property. Such �figible Rehabiiftation costs
r�usi come from the rehabilitation of at least five (�) residenfial fiving units or
a minimum Capital Invesfinent of $200,000.
b. Any other terms as City Cauncil o# the City of Fort Worth deems appropriate,
inclu�ing, but no# limi#ed to:
9. utilizatian of For# Worth companies for an agreed upfln �ercentage of the tatal
costs for constructian contracts;
2. utilization of certified rninority and women owned �usiness enferprises for an
agread upart percentage of the tota! costs for construciion ean�racts;
3. proper�y inspectior�;
4. commit to hire an agreed upon �ercentage of Fort Wor�i� resi�ents
5. commit ta hire an agreed upon percentage of Central City resid�nts
6. landscaping; .
7. tenant se[action plans; and
8. management plans.
C. �CAIVIM�RCIA�, IN9USYRi,�o� kiV� COM![�lIUNIYY �ACILITI�S DEVELOPM�RlY
PROJECTS LOCAT�A IN A Al��
1. Ft�li Abatement for � years.
In order to b� eligible for a property tax abat�ment, a newly constructed or
rei�abilitated commerciallindustrial and commur�i#y facilities development project in a
NEZ must satis#y the folfowing:
a. A commerciaf, industrial or a community facilities development project
constructed after NEZ designation must �ave a minimum Capital Investment of
$75,OQ0; or
h. For a rehabififatifln project, if must be rehabilitafed after NEZ designation_ Eligible
Rehabififation cosfs on #he property shall be af least 30% of th� Base Value ofi
the praperty, or $75,000, whichever is greater.
2_ 1%-100% Abatement of City Ad Valarem taxes up ta 1 Q years
If an applicar�t applies for a tax abatemeri# agreemenfi with a term of more fhan fi�e
years, this section shall appFy.
Abatement agr��ments for a Commercial, Indusfrial and Community �acilities
Devalopment projects far up to 10 years are subject to City Councii approval. Th�
�
applicar�t may apply with the Economic and Community Development Department for
such abatement.
Years 1 throuah 5 of the Tax Abatement �4qreemeni
Commercial, lndustriaf and Community Facilities Development projects shafl be
eiigible for �00% abatement nf City ad �aiorem taxes for �h� frst five years of the
Ta�c Abatement Agreement upon the satisfactian of the follawing:
a. A commercial, irrdustriaf or a commur�iiy facilities cfevelopment project
canstructed after NEZ designatio� must have a minimum Capitaf Investment of
$75,0�0; ar
b. �ar a rehabilitation project, it must be rehabilitated after NEZ desEgnation. �Iigible
Rehabilitation costs on the praperiy shall be at leasf 30% af the Base Value of
the properly, or $75,000, whichever is gr�ater,
Years 6 thro�qh 10 of ff�e Tax Abatement Aqreement
Commercial, Industrial and Community Faciiifies Develapment prajects shall be
eligible for 9%-100% abat�menfi of Gity ad valorem taxes for y�ars six through ten of
fhs Tax Abatement Agreemenf upon the satisfactian af the fallowing:
a. A commercial, i�dustria! or a community facilities development projecf
constructed after NEZ d�signation musfi have a minimum Capital In'vesfinent of
$75,DQ0 and must maet the requiremenfs of subsection (c) below ; or
�. For a reha�ilitatiart p�oject, it must be rehabilitated af#er NEZ designation. Eligible
Rehabilifatian costs on th� property s�all be at least 30% of the Base Value of
the praperiy, ar $7�,OOD, whichever is greater and me�t the requirements of
subsection {c) below. �
c. Any at�er terms as City Councii of the City o�F Fort Wor�h deems appropriate,
including, but nat limitet! to: -
1. utilization of �ort Worth campanies. for an agreed upon percentage of fhe tofai
casts fior construction cantracts;
2. �filization ofi certified minority and women owned busin�ss enterprises fior an
agreed upon percentage of the total. casts for construction can�racts;
3. commit to hire an agreed upon percentag� of Fart War�l� residents;
4. comrnii #o hire an agreed upan percentage of Central City residents; and
5. iandscaping..
D. IVllX�b-US� �EVE�OPM�Ni PROJECTS �OC�i�D [IV A N��
1. Full Abatement for 5 years.
!n order to he efigibfe for a property tax abatement, �pon campletion, a�ewly
canstructed or rehabilitated mixed-�se development project in a NEZ must satisfy the
folfowing:
a. Residential uses i� the �roject constifute 20 percenf or more ofi tF�e tota! Gross
Floor Area of the proj�ct; and
b. Office, eating and enteriainment, andlor retail sales and service uses in the
}araject constitute 10 percent or more of t�e to#al Gross Floor Area of the pro1ect;
and
0
{1} A mixed-use development project canstructed after NEZ designation must
have a mir�imum Capi#a[ Investmer�t af $200,OQ0; or
(2) �or a rehabiiitation project, it must 6e rehabilifafed. after NEZ designatior�.
Eli�i�le ReF�abiliiation costs on the property shaN be.at least 3fl% of the Base
Value of fhe property, ar $200,000, whichever is greater.
2. 1%-100% Abatem�r�t of City Ad Valorem taxes up to 10 years
If an applicant applies for a tax abatement agreement with a term of more than fi�e
years, this sec#ior� shall apply.
Abateme��s agreements far a Mixe� Use Developme�t projects for up fo 10 years
are subjecf to City Council approval, Tne appficant may apply with fhe Economic and
Communi#y Develapmer�t Department foT s�eh abatement.
Years 1 fhrouqh � o�i the iax E#batement Aqreemen�
Mixed Use Develapmenf }�rojec�s �haq be �ligible far 10Q% abaiement of Ci�y ad
valorem faxes for fhe first five years of the Tax A�ateme�t Agreemet�t upon the
satisfacfion of the folfawing:
a. Residential uses in the proj�ct canstifute 2Q percent or more of the total Gross
Floar Area of the project; and
b. Office, eating and enterfiair�men#, and/or retail sales and service uses in fhe
praject constitute 10 perc�nf or more of the total Gross Fiaor Area of the project;
and -
c. A nerry mixed-use de�elopment pro3ect constructed after NEZ designafion must
have a minimum Capital In�estment of $200,0(}0; or for a rehabilitaiion project, it
must be rehabilitated affer NEZ c��signation. EEigible Rehal�ilitation casts an the
property shall �e at least 30% of the Base Value of fhe praperty, or $200,000,
whici�ever is greater.
Years 6 throuah 1Q of the Yax,�ba�Eement Aqreement
Mixed Use DeveEopment projects shaU be eligible fior 1-900% abatement of City ad
valorem taxes for years six tFtt'ough fen of the Tax Abat�m�nt Agreemenf upon th�
safisfactian af the following:
a. Resfdentiai uses in the project constitute 20 percent or more of the total Gross
Floor Area of the project; and
b. Office, eafing - and enter#ainment, andlor retai! sales and . service uses in the
prc�ject constitute � 0 percenf or more of #he total Gross Floor Area of fhe projecf;
c. A new mixed-use d�veEopment prajaci cans#ructed af#er NEZ designation must
have a minimum Capital Investment of $200,000; or for a rehabilitation project, it
must be rehabilita#ed after NEZ designation. Eligible Rehabilifation cnsts on the
property sF�all be af leasf 30% af the Base Value of the praperty, or $200,QOQ,
whichever is greater; and
d. Any other ferms as City Council of the City af Fort Worth deems appro�ria#e,
incl�dmg, but not limited to:
1. utiiizatian of Fort Warth companies for an agreed upor� percentage nf the
total costs far canstruction�contracts;
7
2. utilization of certified minority and women awned business enferprises for
an agreed upon percenfage of the tofal costs far construction contraefs;
3. praper�y inspection;
�4. cammit to hire an agreed upor� percentage of Fort Worth residents
5. cammit ffl hire an agreed upon perceniage af Central City residents
6. landsca�ing;
7. tenant selection plans; and '
8. management plans.
�. ABAT�iVIEfdT GUID�LIAI�S
�. �f a NEZ is located in a Tax Incr�ment Financing Districf, City Council will determine
on a case-by-case basis �f fhe tax abatement incentives En Section I!i wil� be offefed
to eligible projects. Eligibl� projeets must meet ai! eligibility requirements specified in
S�ction III. �
2. !n order to be eligible to apply for a tax abatement, the property ownerldeveloper
must:
a. Not be de[inque�t in paying property taxes for any �raperty owned by ff�e
owner/developer ; and
b. Not have any City afi �ort Worth liens filed agai�st any property awned by tha
appficant property ownerlde�eloper. "Liens" include, but are not limite� #o, weed
liens, demolition liens, 6oard-uplapen sfructure li�ns and pa�ing liens.
3, Praperties under a contract for deed are not eligibie for tax abatemenf.
4. Once a NEZ property owner of a residential property (including mu[fi-farnily} in the
NEZ satisfies i�he criteria set for�h in Sectians III.A, E.1. and E.2. and appl'[es for ar�
abatement, a pra�erty owner must enter into a tax abafem�nt agreemenf with the
Cify of Fort Wort]�. Ti�e tax abatement agreement shafl at�tomatically termina�e if the
property subjec# to the fax abatem�nt agreement is in violation of the City of �ort
Worth's Minimum Buil�ing Standards Cade and the owner is convict�d of suctt
violation.
5. A tax abatement granted under the criteria set forth in Section II�. can onfy be
granted once for a prap�rty in a NEZ for a maximum term of as specffied in the
agresment. If a property on which tax is being abat�d is said, the City wil[ assi�n the
tax abatem�nt agreement for the remaining term once the new owner submits an
application. �
fi. A property ownerlclevefoper of a multifami�y development, cammercial, industrial,
community facilities and mixed-use deve�opment prajact in the NEZ who desires a
tax aba#emen# under Secfians III.B, C or D must:
a. Satisfy the criteria set torth in Sections IEI,B, G ar D, as a�plicable, and Sections
fII.E.1 �.2; and �3. and
b. File an ap�licatian wi�h the Housing Depar#ment or the Economic and
Community De�elapmenf Department, as applicable; ar�d
0
c. The praperty owner must enter inta a tax abatement agreement with the Cify of
Fort WorEh. In addifion to the other t�rms of agreement, the tax abatement
agreement shall provide that the agraement shall automaticaliy terminafe if the
flwner recei�es ane con�iction of a violation of the City of Fort War�h's Minimum
Building Standards Code regarding fhe proper�y subject to the abatement
agreement during fhe term of the tax abatem�nf agrEement; and
d. If a prope�y in the NEZ on which tax is being abated is sold, the new owner
may er�fer i�to a tax abatement agreemenf on ti�e pro�erty for fF�e remaining
term.
F. A�P�IC�TIQPII��E
1. The application fee for residentia� tax abatements go�erned under Section iILA is
$2�.
2. The application fee for multi-famify, commercial, industrial, community facilities and
rr�ixed-use development proj�cts governed under Sections III.B, C:1 and D.1, is one-
haff af one percent (�.�%) af the proposed prajecf`s Capital investment, not #o
exceed $1,000. The application fee wiif be refunded upon iss�aance of certificate of
frnal occupancy and or�ce the property owner enters into a tax abatement agreement
with the City, Otherwise, ff�e Applicat�vn Fee shal� not be credited or refunded to any
party fot' any reason.
IV. FF� WA[V�FtS
A. ��ICIBL� f��C1PI�,NTSIPRO��RTIES
1. !n order to be eligible ta apply fior fee waivers, fhe property ownerldeveloper must
a. Nat be delinquent in paying prope�ty taxes for� any prop�rty awned by the
owner/developer or applicant; and
b. Not have any City fiens filed against any property owned by the applicant praperty
own�rldeve�aper, including but not limited to, weed lie�s, demolition fiens, baard-
up/open structure liens and paving [iens.
2. Properties under a contract for desd are nat eligible for development fee waivers.
3. In o�der far De�elopment Fees andlor Impact F'ees to be waivad for new cons�ruction
or rehabilitation projects �ocated in fhe NEZ, a praperiy awner musf submit an
appfication to th� City. �
Approval of the applieation and waiver of fhe fees shall� naf be deemed �o be
appraval af anv asaect of the proiect. �efare constructiort, the at�plican� musf
ensure tha� the proEect is locaied in �he correct zonina dis�ricf.
�, D�VELO�IV��NT F'EE5
Once tne Application for NEZ Ir�centives has been approved by fhe City, the follawing
fees for services perFormed by the C�ty of �ort Wo�h for �rojects in the NEZ are waived
for new construction prajects or rehabilifafion �rojecfs that expend at least 30% of the
Base Val�e of fhe proper-ty on �figible Rehabilitafion costs:
�7
1. AI� buiiding permit reiaied fees (including Plans Review and Insp�ctians)
2. Plat application fee (including concept plan, prefiminary pla#, tinal p�at, shor� form
repfat}
3. Board of Adjus�ment application fee
4. Demolitinn fee
5. Structure mo�ing fee
6. Community Faciiities Agreement �CFA) application fee
7. Zoning application fee
S. Street and utility easement vacation applicatiort fee
Ot�ter de�elopmenf relafsd fees not specifiiecf abo�e will be cansid�red for approval by
City Council on a case-by-case basis.
C, 1 ilA PACT I���
1. Single family and multi-family residential development projecfis in the NEZ.
Automatic 100% waiver of wafer and wastewater impaci fees will be applied.
2. Commercial, industriaf, mixed-use, or cammunity faciii#y de�eio�ment p�ojects in the
N EZ.
a. Au�omatic 100% waiver of wafer and wastewat�r impact fees up io $55,000 or
eq�ivalent �o two 6-�nch meters far each commercial, industrial, mixed-use or
community facility d�vefopmertt project.
b. If the project requests an im�act fee waiver exceeding $5�,000 or requesting a
waiver for (arger and/or more than iwa 6�inch meter, then City Counc[I appro�al is
required. Ap�licanf may request the addi#ianal amaunt of impact fee waiver
thro�gh the Hausing Department.
V. �t�LEAS� �� CITY I�[�NS
The following City liens may be released for eiigible praperties or projects in a NEZ:
A►. W��� 1�I�IVS
Tf�� fallawing are eligibfe to apply �or release of weed liens:
1. Single unit owners perfarming re�abiEitation on th�ir properti�s.
2. Builders or developers construc#ing new hornes on vacani lots.
3. Owners pertorming rehabilitatEan on multi�family, commerciaE, industrial, mixed-use,
or community faciEity properties. •
4. Dev�lop�rs canstructing new muEti-family, comme�-cial, industrial, mixed-�se ar
communiiy facility devefopment projects.
�. pEMQLIi�QI� !�l�NS
'[ D
Builders ar developers dev�loping or rehabifitafing a properfiy are eligilafe to apply for
release of d�molitian lier�s for up #a $30,000. Re[ease of demalition lie�s in excess ofi
$30,000 is subject to City Council approval.
C. BOA�i�QUP10PEN STRUGTLIRE L1ENS
The following are eligible to apply for release of board-uplopen structure liens:
�. Single �nii owners performing rehabilitatian on their properties.
2. � Builders or deve�opers constructing new singfe family homes on vacant Iats.
3. Owners performing rehabilifafion on multi-family, commercial, ind�stria[, mixed-use,
ar community facility properties.
4. Devefopers cansfr�cting mu[ti-famiiy, commercial, industria[, mixed-use, or
cammunity facility projects.
D. ��►VING LIEf�S
The following are eligibl� to apply for release of paving liens:
1. Single unit o.wners perfarming rehabilita#ion on #heir �roperties.
2. Builders or developers cor�structing new homes on �acant lots.
3. � �wners performing r�habilitation on multi-family, commercial, ir�d�s�rial� Rl[XP.Cj-US�r
or community facili#y praperties.
4. � De�elopers canstructing mufti-famiiy, commercial, industrial, mixed-use, or
comm�nity facility projEcts_
�. �LI('sfB�E RECIP[�NiSlPRQP�FiTf �S
1. ln orrler to be eligible to a�aply for release af City liens, the pra�erty awner/�eveloper:
a. mus� not be delinquent in paying property taxes for any pro�erty owned by
the ownerlde�eloper
, b_ musi nat have been subject to a Building Standards Commission's Order nf
Demalifion where the property was demolished within the last �ve (�} years; and
c. musf not ha�e any City af �ort Worth fiens filed against any other properEy owned
by the appiicanf praperiy ownerld�velaper. "�iens" includes, but is nnt iimi#ed #o,
weed Eiens, demolitiart liens, baard-upbpen structur� lier�s and paving liens.
2. Properties under a contracf fior deed are r�ot eligible for release of City liens.
1l1. PROCEDUI�L SYE�S
A. A�PLICAT'IOi� SU�fVi[S51�f�
1. The applicant for NEZ incentives �nder Sectians fII.A, B, C. D., IV, ar�d V musf
complet� and s�bmit a City of Fort Worth "App[ication for NEZ Incentives" and pay
tf�e appropriafe appfication fee to the Ho�sEng Department or tha Econorrzic and
Community Developmen# Depar�ment, as applicable.
19
2. The applicant for ineenti�es under Sections III.C.2 and D.2 must afso complete and
submit a City of Fort Vllorth "Appfication far Tax Abatement" and pay the appropriate
application fee to fhe Economic and Community Development Depar�ment. The
appfication fee, review, e�aluafion and approval w�ll be go�erned by City of FQr�
Wor�h Tax Abatement Palicy Statement for Qualifyi�g DeveloprrEent Projects.
�. C�RTIFiCATIO�IS �OR A�P�.1C�4�iOMS UN��� S�CiIOPIS E11.A, �, C.1, �.1, 11l',
�IVC] V
�. The Housing Departmentwifl review the appficafion for accuracy and
completeness. Once com�lefie, Ho�s�ng Departm�nt will cer�ify eligibility of the
application based an the criteria set forth ir� 5ection IIL A, B, C.1, D.1, IV, and V af
fhis �oficy, as applicable. Once ar� applicatian is certified, the Housing Departmen#
will inform appropriaf� departments administ�ring ff�e incentives af�aut the certified
appfication. An orieniaiion meeting with City departments and the appficant may be
scheduled. The departments include:
a. Hausing Department: property tax aba�ement for resider�tial properties and muEti-
family develapment projects, refease of City fiens.
b. Economic and Community De�elopment DeparEment: property tax abatemer�t �ar
cammercial,
industrial, community facifities or mixed-use develaprnenf projects.
c. �evelopment Department: d�velaprnent fee wai�ers.
d. Water Department: impact �Fee waivers.
e. Other appropriate departments, if applicable.
2. Once Development �epartment, Water Department, Econom[c and Community
De�elopment Depar�ment, andlor other appropr�ate department receive a cer#ified
app[ication from the Housing Departrrtent, eacF� ciepartmen�loffice shall fill out a
"Verification of NEZ Incentives for Certifiied NEZ Incenti�es Applicatian" and reiurn it
to the Hausing Department for record kesping and tracking.
C. �lPPL.ICATiOf� REVI�W AR�D �VALUATI�IS �OR APPLICA�'10[VS
1. Property Tax Abatement for Residential Propert�es and Multi-family Developmenf
Projects �
a. For a completed and certified application for no more than fi�e years of �ax
abatement, wifF� Council ap�rovai, the City Manager shall execute a tax
abatement agreement with fh� applicant.
b. Far a cflmpleted and cerkified multi-family development project application for
more than five years of fax abat�ment:
{1 } The Housing Depar�ment will evaluate a campletec� and ce�tified application
based on:
(a) The project's increas� ir� the vafue of the tax base.
(b) Costs ta the City (such as infrastructure participatian, eic.}.
(c) Percent of canstruction contracts committed fo:
(i) For� Worth based tirms, and
(ii) Minarity and Women Owned Business Enterprises {MIWBEs).
(d) Oth�r it�ms which may be negatiated �y the City and the applicant.
'12
(2} Consideration by Cauncil Committee.
Based upon the oufcome of ihe e�aluation, Hausing Depar�ment may preser�t
the appfication ta fhe City CounciPs Ecor�amic Development Committee.
Should fhe Housing Department present the appiication to the Economic
Development Commiftee, the Commiftee wil! consider the applicatian at an
open meeting. The Committee may:
(a) Ap�rave the ap�lication. Staff will then incorporaf� the application into a
tax abatement agreement which will 6e sent to the City Council with the
Committee's recommendation to approve the agreement; or
(b} Request modifications to tFie application. Housing Departrr�ent staff wili
discuss the suggested madifica#ions with the applicant and then, if ihe
requested madificafians are made, resubmit the madifi�d application ta
the Committee for cor�s�derafior�; ar
(c) peny the application. The applicant may appea! the Cammittee's finding
by requesting tY�e City Council to: (a) disregard the Committee's finding
and (b) instruct city staff to incorporate the application into a tax
abaiement agreement for future consideration by the City Counci[.
(3) Consideratian by the City Cauncil
The City Counci[ retains sole autnority to approve or deny any tax abatement
agreem�nt and is under no obligatian to approve any tax abatement
application ar tax abatemenf agreement. The City of Fo�t Worih is under nQ
obligation to provide tax abatement in any.amo�nt or value to any applicant.
c. E�'ective Date for Approved Agreeme�is
All tax abafements appraved by the City Council will became efFective on
January 1�f the year following the year in which a Certificate of Occupancy (C�)
is issued for the qualifying development project {unless atherw�se specified in the
tax abatement agreement). Unless otherwise specified in the agreement, taxes
levied during the cflnstruction of t�te proj�ct shalf be due and payable.
2. Property Tax Abatement for Cammercial, fndustrial, Community Faciliti�s, and
Mixet�-�se Developmenf Projects
a. For a compEeted and cer�ified applicatian for no more than fi�e years af tax
abatement, with Counci] approval, the City Manager shafl execute a tax
abatement agreement with the applicant.
b. �'or a completed and certified application for more fhan five years of tax
abateme�t:
(�} The �conamic and Community ❑evelopment Department wili evaluate a
eompleted and eeriified application based on: �
(a) The project's ir�crease in the value o# the tax base.
(b) Costs to the City (such as intrastructur� particFpation, etc.).
{c) Percent of consfruction contracts comrr�itted to:
(i) Fort Warth based firms, and
(ii) Minority and Women owned B�siness Enterprises (MIWBEs}.
(d) Ofher items whic� may be negotiated by the City and the applicant.
13
(2} Consideration by Council Committee �
Based upon the outcame of the evaluation, the �conamic and Comrr�t�nity
Development Departm�nt may present the applicafion to the City Council's
Econamic De�elopment Committee. SF�auld the Economic and Community
De�elopment Depar�ment present the applicaiivn to the Ecanomic
Development Committee, the Committ�e w911 consider the application at an
open meeting. The Committee may:
(a} Approve the application. Siaff will then incorporat� the application into a
tax abatement agreement wf�ich will be sent to the City Council with the
Committ�e's recommendatio� to approve the agreement; or
(b) Request madificatians ta the application. Ecanomic and Community
Development Department staff w�ll d�scuss the suggested modificatians
with the appficant and then, if fhe reauested modifications are rr�ade,
resubmit the modifie� application to #he Committee for consideration; ar
(c) Deny the app�icatinn. 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 appficafian inta a tax
abatement agreement for future consideration by the City Council.
(3) Consideration by the Cify Council
The City Council retains sale authorify to approve or deny any tax abatement
agreement anc! is under no obligatiran ta appro�e any #ax abatemeni
applica#ion nr tax abatemen� agreement. Tf�e City of Fart Vllorth is under no
� obligatian to provide tax abafement in any amounf or value fio any applicanf.
c. Effective Date for Approved Agreements
All tax abatements appraved by fihe City Council will become effective on
January 1 of the year.following th� year in which a Ceriificate of Occupancy (CO}
is issued for the qualifying devela�mer�t praject (uniess otherwise specified i� #ne
ta� abatement agreement). Unless otherwise specified in the agreement, ta�ees
I�vied during the construcfian of the project shall be due and payable.
3. Developm�nt Fee Waiv�rs
a. For certified applications of development fee waivers that do not require Cauncil
apprava�, the De�elopmeni Departrnent will review t}�e c�rtified applicant's
appGcatio� and gran# apprapriate incen�ives.
b. For certified applications of development f�� waivErs that require Council
a�provai, Gify stafF will review the certified applicant's appfication and maice
appropriate r�commendations ta tne City Council.
4. Impact Fee Waiver
a. For certified applicatians of impact fee waivers that do not require Council
appro�al, the Water Departmenf wili review the certified applicant's application
and grant appropriate incenfi�es.
14
b. For cer�ified app�icafions of impact fee waiWers t�at reguire Councif appraval, th�
Waier D��artment wil� review the certified appNcant's application and make
appr'opriate recommendations ta the Gity Council.
5. Release of City Liens
For certified applications of release af Cify fiens, the Hausing Department will release
the appropriate li�ns.
1I11. OYHER R[JLFS PERiAfNIAIG TO �ROP�RTY f�4X /��AT�IV��iV�'
�. RFCAPTUR�
If tF�e terms of fF�e fax abatement agreement are not met, the City Cour�cil has the right to
cancel or amend ihe abatement agreement. In the e�ent of cancellafion, the recapfur� af
abated taxes shall be limifed to tF�e year(s) in wF�ich the defaulf occurred or continued.
�. INSPECiION AND �IIVAA[C�AL V�RIFICATI0�1 �QR MULTI��AlV�1LY, COfMIfE���iCIALI
lfV�US�R1�L, COMIV�UNfTY �ACILI'�'l�5 AND IVIIX€�oUS� ��V��.QF��VI�IVi
�ROJ�C�S
The terms of t�e agreement s�aN inc[ude the Ciiy of Fort Worth's right to: (1) re�iew and
verify tl�e applican#'s financial statements €n eacY� year during the life of the agreement
prior fo granting a tax abatement in any given year, (2} conduct an on site inspection ot
the project in� each year duri�g the lEfe of fhe abatem�nt to �erify camp[iance wifh ii�e
terrrts of the tax abatement agreement.
C. EVALUAiI�fV 1��Ft NlllLila�AMC�Y, COM�Ii�RCIALI IAI�USiRII��, �OIVffl�UNlil(
F/�CI�E fl�S �#N� MIKED-[JSE R�VI�LOPMI�Rli PROJECTS
Upon. complefion of c�nstrucfion of th� facilities, �he City shall no less �han annualfy
e�aluate each project receiving abafement #o insure compliance with the terms o# the
agreement. Ar�y incidents of nan-compliance wifl be reported to the Cify Cauncil.
Dn or before Fe�ruary '�st of every year during fihe life of �he agreemeni, any
individual or enfi�y receiving a tax a6afement frorr� ihe Ciiy o� Fort lfilorth shall
provide informafian and doeumentatior� which de#ails fF�e property owr�er's
cornpliance with fhe terms af the respective agreement and s�all certify that the
owr�er is in cnmpliance wit� each applicab�e �erm of �he agreement. �ailure fo
repori this fnformation and #o provicte the requir�d cer�i�ication by tlte above
deadline shall resu�t in cancellation of agreement and any ta�ces abated in fhe
prior year being due and paya6le.
D. �FF�C� O� SA��, ASS�GNii��NT OR ���5� O� ��OP�RTY
If a property in the NEZ on w�ich tax is being abated is sold, th� new owner may enter
into a tax abatement agreement on the �roperty tor the remaining term. Any safe,
assignmenf or lease of the prope�ty which is naf permi#ted in the tax abatement
agreement results in cancel3afion of the agreeme�t and recapture of ar�y taxes abated
after the date on which an unspacified assignment occurred.
1�
VIIL � fH�� 1MC�I�TIV�S
A. Plan re�iews of proposed de��lopm�nt �rojects in the NEZ will be expedited by the
Develapment Departme�t.
�. The Cify Council may add the following incentives to a NEZ in the Resol�tion adopting
the NEZ:
� . Municipal sales #ax refund
2. Homebuyers assistance
3. Gap financing
4. Land assem�ly
5_ Con�eyance of iax foreclosure properties
6. Infrasfruct�re improvements
7. Su}�por�for Law Incame Housing Tax Credit (LlHTC} app[ications
8. Land use incentives and zoning/bufldi�g code exemptions, e.g,, mixed-use, density
bonus, par�cing �xemptian
9. Tax Increment Financing (TIF)
10. Pub[ic lrnpro�em�nt District (P1D)
11. Tax-exempt bond financing
12. New Model Bfacks
'i3. Loan guarantees
1�. Equifiy irtvestments
� 5. Other incentives that will efFectuate th� intent and purpases of NEZ.
16
Exhibit B
3� 32 Eastcresi Court Lot 2, Block 1 Eastcrest Addition
Exhibit e
Project Descriptinn
Sing[e Family Residence
90% �rick Veneer
1500-1900 square feet
3 Bedroamsl2 Baths
Two car garages
Arched 11Vindows at Fror�t o# House
Front Yard Landscaped .
Microwave with built-in Vent-A-Hood
Wood Burning Fire Place
Buil�-in Security System
Computer Area with CPU & Printer with a dedicated tefephone line
Vauf#ed Ceiling in Master Bedroom and Li�ing Roam
Frer�ch Doors
Separate Tub/Shower in Master Bathroom
Garden Tub in Mater Bathroom
4 ,
�QRT�ORTH �
���� �
Application Na. �� [� � � � �
erzy oF Fa�.x wo�Tx
� �iEIGHBflR�3�QD �NIPOWERM�NT ZONE (N�Z) FROGRAM
PROJECT CERTI�`�CATION APPLxCATION
�'O�tM B FOR �VESTQR OWNERS (SINGLE F�Y ONLY)
x. A,PPLTCATTON CHECK LTST �
_Please submit ihe_ follawving dr��umentation wit� each prapefiy request-ed: '' ' ��
�] A completed"app�icati.o���o�n � �'� �`9�>t= �-', Y
• � �. ::� -
�,.� ;,,�,;[�_, ; 1� Iis� a�:�11.pr�perGieS�a�ed..by the applic�t in Fort W'or�ii �
� Application fee of ��5.�0 (for ta� abatement agplicatians �anly) �
❑ Proof Q� avcrners�i�, such as � tivazxanfy deed} afficiavit af heirship, dr a pra�aied will -�R
. evidence of site�con#xol, sueh•as option to b�y - � -�
� ❑ Title absiract�a�t�e�propertsr.�4ptio7nal�� = � � � ' '
For 12ehabilitati4n P'r`oiecfs Oniv: . .
;❑ �or a pra�eci im the plannzng stage, please s�bmzt a coz�ar�leted set of Re�abi�itaiion � '
.. .��(Remodel� Plan and a Iis.t o£ eti�ible.r�Iaab�itaiio�i_.c.osts'�: �(for applications o£ ta� ..-.
abatexnents and development fee r�vaivexs for rehab projecis orily)
❑ 4nce a project is complet�d, please submit prao� o���ie eligzble rehabilita#ion co�ts* such
� as invoices, cont�aots, or receipts. (fax applications o�' ta� abatemen�s an��) �
�; . .
* Eligihls zehabilitafion includes anly pl�ysica� improverrxents to real property. It daes N`OT include persona�
property such as furniture, apgliances, equzpmeni, and/ar su,ppiies. Total e�igible rehabiaitat�on costs shaII eq�al
. to or exceed 3�°fo of the T,axrant Go�rn.ty Appzai�at Disirict (TAD}.ap�raised value of the stiucture during ths
yeaz rehabi�ita.tion occurs. _ . -
��. n, App�icattt / AGIENT T.�I'Fi�RMATI�N ! — , — — —• — — — — �— • — —� -
1. Applicani: � 2. Con�act Per�on:
. ��c�r���}��h��1l�a�+���u . � ��,�1� ��'�
3. � Adc[ress: � �.�,��.�t�--��
� .�d�Sf" �7� � � T iDZ
' . Street r ` C�ify. Sta�e_ Zip �
. 4. Phane no.: F�/7 - �71�-�3%3° _ � _ 5. Fax �+To.: ;�/7��� -i�1�
�. ��: ����� D�c�.�����-�� 7-Y: vs - - � - �
7. Ageut {if anY) . "
$: Adc�ress: - :- - -- � - - - . - -.. .. - - -- -. .
. . . - Sfireet - - -. City - State - Zfp- -
� r.
9: Plxone no.. .�_ �. � 10. Fa� No.: �
� 1 �. �+ m�il: �
.. = Tf y�� nEed fu��er info�-mati�n or ciar'ifiicaf�on, piease contact Chun-Y Lu at ($�'T} �'�Z-73�Z � or� .
Sea Cuxa at (817} 871-Sd3b. , '
�
� ,.�,
1
�
�`o�.T �oRTx
��
iTI. PR�PERTY ELIGIB�I,IT'Y
1. Plea.se lisf down the addresses and legaI descriptions af the propert� wherc you are app�yi�ag
f�r NEZ i�ncentives and other proper�ies �ou own in Fort Worth. At�ac3� metes and baunds
desc�ripfion xf no address or legal descripiio.zx is avaiiable.
Tahle 1 . Property� Or�nershi.p
�.ddress .
I (Proj�ct Locaiion)
� ' � _
Zip Legal DescripT�on -- -
Cade ��bdxvision Lat Na rBXock No.
- -- �� - - - - , -
�
� ���,% � . �� -- ,�; _ _ �
- � - ..�_ -
. ' �'�� � ��►►�r��� - �. � ��
� + � . .
. - I . - - - - - j.- -. .-.- - - -- -
I
- - �- � -� -- - - - _ -- r- -
- - �,- . - -- . - _ - - --+
(�lease att�cE� additaonal sheets of paper as needed.) � � -
� ��. �ar e�.ch properties listed iri Tab1� 1;•please ch�e+ck fhs baxes below to incticaie if: .
o there are taxes du�; or j� �� ' .
� th�re are Cxty Iiens; or �� �
o yau have been subjec� to a Building S�ndards Camrnission's �rder of D�molition whare the
property vvas d�molisheci within the �ast five years. �¢ �
T�ble 2 Property 'I'a�es and CYty Lieus �
.' , A�ddress i Frdperfy �i#y Liens on Proper�y -�
. .:.,xr•�- -_ � ;y:.: �. Ta.��S •,��Weed Soa�d-up/Open:;..Demolition•� Paving Or.derof•.
. , ," .. , . ` . �� �'�.. ; , - :; -:Due •� �ieas "Stucture Liens -- I,�iens ��_ -�+ Liens � . Der�olitior�� �
. � - � �� . �- � � � I � .
F�=.k "`7' . '�''. . ' - ' ' �[g ,'+`S':'� �,�f���:,..1_�:f t -�:Sa .' —�-",�" i� — � ,_.� �_ _
. �� - � � _��- _.��»- -_ ���� o-�. � -- . . o, ..� _� . . -a : _��� ❑_ � __o �
. � . . -- - �� o .-��- ��_� .: � -=o � -- � +�� �-� o = o - � - _
� . . � , _ i - - - - - - _ - � _ �
_ o� �-o-�� o.�.o � o. f o
. . _, o - o , - o -. . � ., .,__ , � . _� � o ,
� , . � o -.�._�� <<__..to._.=- . o_ __ �_ _o
� _ -- � -o__ __o � o _ o _ o � - o
�� 1
� �.
.(Please attach add'z�ionai sheets of paper as needecl.}
•� _
_i
�. Dn you own other �roperties u�ader other nazzies? ❑ Yes,�,�Yo
� If Yes, p�.ease speci�
4. Dnes the proposed develapment co�foxm �th Ciiy of Fart'Worth Zonizzg? +0 �'es
S. Is��his propertiy� u.nder a contract for r�eed? 0 Yes �l�To
2
❑ No
.. o
~�•.
� F � �`aRT �1V4RT`H
6. Ha.s the cansirueti�n on �he praperty been cornplei�d or is it 4n �he pla�ning s�Eage? Wk�at
type of consiruction?
❑ Canstr�ction Cambleted i� Under Construc�ion �In Pla.nni.n� Sta�e
❑ New Coz�struction 0 Rehab ❑ New Construction �� Rehal� � New Cc�nstruciian [] Rehab
7. Tf the construc�ion on the praperty has been campleted when ihis applicaiion is submitted,
�han rvas the work done? �
8. . Sf it is a rehab propext�, does (or wi�l) fhe rehabilitataon wark� done o� the proparty ec�uai
to at least 30°!o af the Tarraa�t County AppXaisal TJistric# (T.AD) assessed value af the
sixuciure during �e yeax xehabiIitation (remod��ed} occurred? ❑ Yes ❑ Na
*Only p�Zysical impxoveznents to real property is eligible. DO NQT include personal pxvperty
such as furniturea a.pp�ia.�ces, equiprnez�t; andlor supplies.
;�.� �h� IN�NTiVES — — — — — � ; � ; .. . . . . ` ,. � � � } .
_ �.
_ A. _1..'GVhat•inceniives are yau apPl�ing far?; � _ �� . - . .
� N,��iticipaI P]roUertY Tax Aba.ie�et�t5 �F'� ' � � �
� Dev�i�opment �ee Waivea�s �
f� All buil�ing permit related'fees (including P�ans Review aind Ins�ections)
. � Haw much is yo�ti total developmei�t costs? $; j� ���� ��
� Hov�r xnuch is the tatal square foatage of �our proj ect? �,����„ 5qu�'� ��et '
�. .� .� Plat applicatiom fce (i��Iu�ing concept plan, preliminary p1at, final plat, short farm�replat)
� Board ofA.dj�stment a$plica#iort fee
[] Demolitio� fee
. µ [] Structure mnving fee � �
.� . � C`omm.unit�, Facilities:Agr'eeznent-{�FA:} appliEa�ion:%�.. , • .� . _ -• b. . �
� � �oning a.pplication fe�e � � � � - � � . . .: � . .
. � Street aizd utility easemez�t
�
� ZiaAact Fee Wa�vers . �
�. �xnpact fee waiver �t � ,
. �Vletez Si�e ,�� How ma.ny m�ters? �� . . .
ReIease of Citv �iens
❑ ��Veed �iens . .
� ❑ � Board up/open siar�ictuxe liens .
. .' [] � Derriolitiaz� liens . ' .
; � � _ ❑ Pavang Iiens ._, _. _ _ _, —., _. _, — , — -- - —,
u
r
3
F�aRT �ORTH
i
V. ACKNOWLEDGMENT� i � — — —" — —� — — -- — _
I hereby certify thaf t�� �'o�atian pxovided is true and accurate to the best ofmy knowledge. I hexeby
aclaiowledge that T have received a copy of NE� Basic Iz�centives, which overz�s ihe
abaternents, f�e��,�y�r� �� ���ease of City lien:s, and ihat az�y VZOLATION af the tem o�the I�Z
Basic Inc�nti�es or MI�R.EpRESE�ATIi3N shall aoz�stitute ground� for reje�tion af an app�icaiion or
t�rmination of zn.centives.a� the disc�etion of the �ity, �
I understand that the apprav�� of fae waivers and ather incentives shalI not ba de�rned to be approva] of
any aspect af the projact. I understand �hat I ari� r�sponsible in obtainirig rec�uired pe�nYts and
imspeciions frpzxi t.�e C�fiy and i� ��5�g .�� pxo�ect is located � the correct zoni.ng district.
I a�ee to provide any addit�onal infnrmation for deter�xiining eIigibi�ity as requested by the City.
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E�ectronic version ofthis form is available byrer�uest, pleas� oall 817-87�_7381 to request,a copq,
.-- -- Fox Office lrlse Only __ .__ -- --- — -- -- — ,
��ppli�a#ion Nn, �'j�(,''�` � 6 � � vcrhiah NE�? �
TAD ID - � �i� Coizform witkh Zoning? "Q.Y�s � �No
� � Contract �'or deed7 . ❑ Yas - � �• -
.[]� No T�e? � �f .New constr�ction ❑ �eh�.b
Can,str�ctian completion date? ❑ Before NEZ .�� �Z
� O�vnershig � � Yes�� �] Na
Rehab at or hi gh e r t h a n 3 0%? ❑ Yes ❑ No Consistent with fi,��e I�TEZ pZan? � Yes
Tax c�.iirent on this. ro e? � � N�
p P�' � Yes ❑ No Tax cur.rent o� other properties`? � Yes`' [] No .• .
City iiens on ihis properiy? City lie�s`on�otherproperties?
� Weed liens ❑ Yes � Na � Weed Ziens .
� Board-ug/apen str�ctttre lien� . ❑ �'es � No
� Ye� � No � Board-u /o en structure Iiens
.• Demalition Iien� �� 0 I'e� � No •
❑ Yes X[� No � Deii�oli�an liens ❑ Yes �/] No
� Paving Iiens ❑ Yes � No �
Paving lzens ❑ Yes � No
o Order of demo�ition ❑ Yes Q No � Order of demolition
Certified? ❑ Yes , ❑ ��s � Na
❑ Na Gertzfied by . Date certi�cation iss�.ed? ���� ��
7ino� certi�ed, reason r �
Refexred to: [�Economzo Developrr�ent �Housin
— _ _ . g �Development �,Water ❑Cade rp�r
— — — — — -- — — �- _, ;
Revised August 23, zoUl • ' �
0
�
�'ity of ' 1�'0. Yt �Yo�th, Texas
Mayor a�d Counc�l Communica-tion
�A7E REF�R�NCE NIJMBER LOG NAME PAGE
� 91� 01�2 Ca19235 I . 05NEZ�- 1 of 3
suB��cr AUTH�RIZATION TO ENTER INTO TAX ABATEMENT AGREEMENTS WITH THE
� FORT W�RTH H�USING FiNANCE C4RPORATION FOR THE DEVELOf'MENT O�
SiXTEEN SiNGLE-�'AMILY HOMES �OR TH� EASTCREST SUBDlV1SI�N LOGATED
1N THE STOP SfX NEIGHB�RHOOD EMPOWERMENT ZONE �
RECOMMENDATION:
lt is recommended that the City Councif:
Approve the Fort 11Vorth Housing Fina�ce Carporation (FWHFC) applicatior� for Municipal Property
Tax Abatement for the Eastcrest Subdi�is�on; and .
2. Find tF�at the statemenfs set forth in tY�e recitals of the atiached Tax Abatement Agreements (the
Agreements) with �WHFC are true and correct, and •
3. Authorize t�e City Manager ia ente� into iax abatement agreements wiih �WH�C far the develapment
of sixteen sir�gle-family homes in the Eastcrest 5ubdivision located in ihe Stop Six Neig��orhood
Empowerment Zone (NEZ), in acc�rdance with the NEZ Basic incentives.
D15CU5510N:
The FWHFC is #he developerlowner of iF�e Eastcrest Su�bdivision in the 4700 Black of Eas# Berry Street
and Eastcrest Caurt lacated in NEZ Na. 1: � � I
The FWNF'C a�plied for municipal property tax abatement �tr�der the NEZ. Basic Inceniiv�s (M&G G-
i32a8R dated ,lune 5, 2Q02, M&C G-'l3580 dated April 2, 2002, as amended, and M&C G�136fi2R
dated July 23, 2002, as amended). The Housing Department has r�viewed the application and certified
that the proper�y mee�s the eligihility criteria to recei�e NEZ municipa! p�-operty tax abaterr�ent, The
NEZ Basic Incentives offers a fiva-year municipal praperty tax abatement af the increased value of
improvements t� a developerlowner af any r�ew hom� constructed�within a NEZ. �
LJpon executian of the Agreements, the total assessed vali�e af each F�ame in the Eastcrest Subdivision
used for calculating municipal �rop�rty tax will be froz�n far a fv�-year periad, stariing on January 1, of
� the year falfowing the year in wh�ch the hame is sald, at the pre-improvemen# �alue of eact� �o� as c�efned
by the Tar�ant A�praisal Districi �TADj on .�anuary 1, 2002, as follows:
� Pre-lmprovement TAD Value of lmproveme�ts $ -D-
�. Pre-im�rovement TAD Value af Land $�,OOO�per iot ..
� Total Pre-lmprovement TAD Value $1,DQ� per lat
City of .�'o�t l�Vo�th, �'exas
M��or �nd Cou�c�1 Communica-tio�n
l7ATE REFERENCE NUMBER. LOG NAME PAGE
91101a2 . C�� 9235 �_ fl�NEZ � 2 of 3
SUBJEGT AUTHORIZATION TO ENTER INTO TAX ABATEMENT AGREEMENTS WITH THE
' FORT WORTH H�USING FINANCE GORP4RAT10N FOR THE DEVELOPMENT OF
SIXTEEN 51NGLE-FAMILY H4ME5 �OR THE EASTCREST SUBDIVISION L4CATED
lN THE ST�P SIX NEfGHB4RHOOD EMPOWERMENT �ONE �__
Address
31 a0 Eastcrest Court
310� Eastcrest Court
3� 0�4 Eastcrest Court
3105 Eastcrest Court
31 �8 Eastcresi Caurt
31 p9 Eastcr�st Cpuri
3112 Eastcrest Court
3113 Eastcresf Court
31 � 6 Eastcrest Court
33 2Q Eastcrest Court
3124 Eastcrest Court
3128 Eastcrest Court
3132 Eastcrest Court
3'! 33 Eastcrest Court
313fi Eastcrest Court
3137 Eastcrest Caurt
Leqal Description
�.o� 10, Black 1, Easicrest Addition
Lot 6, Bloclt 2, Eastcrest addition
Lot 9, B1ack 1, Eastcrest Additian
Lot 5, Block 2, Eastcrest Addition
Lat 8, Blaclt 1, Eastcrest Additio�
�ot 4, Block 2, Eastcrest A�dition
Lot 7, Block �, Eastcrest Addition
Lat 3, Blocf� 2, Eastcrest Addition
Lat 6, B1ock 1, Easfcrest Atldition
Lot 5, Block �, Eastcrest Addition
Lot� 4, Bloc�C 1, Eastcrest Addition
Lot 3, B1ack 1, Eastcrest Addition
�ot �, Block 1, Eastcrest Additio�
Lot 2, Black 2, Eastcrest Addifion
Lot 1, Black �, Eastcrest Addition
Lot 1, Block 2, Eastcrest Additian
FWH�C expects to compl�te consfiruc#ion on or before .lune 30, 2003, and sefl tY�e sixteen hames ta
new owners. Upon tt�e sale of each home by FWHFC; the Ho�sing Depariment staff wil� p�esent th�
proposed assessment of tha tax abatement agreements to th� City Cauncil far agpro�al if the new
owner meets all eligible criteria as �stated �in �the NEZ Basic Incenti�es.
�WHFC will invest $�,600,004 ta canstruct sixteen single-family hames in the Eastcrest Subdi�ision..
The locatian of the proQosed develapment, .typical elevatio�, and project d�scription are attached to tt�is
Mayor and Council Cflmmunicatian. The municipal properly tax on the improved value is esfimated at
$558 per house per year or a total of $44,64� a�er the five-year period. �
On August � 3, 2002, the abo�e proposal was endorsed by th� Econamic and Community Development
Committee for City Council appraval.
Tne Eastcrest SubdEvision is loca�ed in COUNC�L D15TRICT 5.
City o. f'�'o�t l�orih, Texas
Ma or ar�d Cour�c�[ Gor�rr�unicatior�
y � -- - -
DATE " REFER�NCE NUMBEl� LOG NAME �AGE �
� 9i� aroz C�� 9235 �SNE� � � 3 of 3
SIJB.]ECi' AUTHORIZATiON TO EN ER lNTO TAX ABATEMENT ACREEMENTS W1TH THE
FORT WORTH HOUSfNG FINANCE C�RPORAT��N FOR THE DEVEL�PMENT OF
' SfXTEEN SINGLE-FAM11�Y HOMES FOR THE EASTCREST SUB�IVISION LDCATED
iN THE ST�P SiX NEIGHB�RHOOD EMPOWERMENT ZONE _
FISCAL INFORMaT10N/CERTlFiGAT{ON:
The �inance �irector certifies that t�is actio� will have no material effect on City funds.
I�:i�i
Submitted for City Manager's
Ofiice by:
Reid Rector
Origin�ting Department Hesid
7erome Walker
AdditionAl Infarmation Cantuct:
Jerbme Walker
I �UND � ACCOUNT '
, (to)
614D � � I
I 1
� l �
7537 � (from)
i
�s�� �
�
CENTEIt
� AMUiJN'X'
I
CITY SECRETARY
� ApPA�VLD 09/101Q2
� -
�
1