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HomeMy WebLinkAboutContract 29898 Boulevard Builders Ridglea Place, L TA OF TEXAS CITY SECRETARY CONTRACT NO. COUNTY OF TARRANT § TAX ABATEMENT AGREEMENT' FOR PROPERTY LOCATED IN A NEIGHBORHOOD, EMPOWERMENT ZONE This TAX ABATEMENT AGREEMENT ("Agreement") is entered into by and between the CITY OF FORT WORTH, TEXAS (the "City"), a home rule municipal corporation organized under the laws of the State of Texas and acting by and through Reid Rector, its duly authorized Assistant City Manager, and Ridglea Place, LP ("Ovmer"), a Texas Corporation, doing business in the City of Fort Worth. The City Council of the City of Fort Worth ("City Council") hereby finds and the City and Owner hereby agree that the following statements are true and correct and constitute the basis upon which the City and Owner have entered into this Agreement.- A. Chapter 378 of the Texas Local Government Code allows a municipality to create a Neighborhood Empowerment Zone (NEZ if the municipality determines that the creation of the zone would promote: 1. The creation of affordable housing, including manufactured housing in the zone; 2. An increase in economic development in the zone; 3. A_n increase in the quality of' social services, education, or public safety pr vi*ded to residents, of the zone; or o� 4. The rehabilitation of affordable housing in the zone. B, Chapter 378 of the Texas Local Government Code provides that a murficipality 0 . that creates a NEZ, may enter into agreements abating municipal property taxes on property in the zone. C. On July 31 1 2001, the City adopted basic incentives for property owners who own property located in a NE Z, stating that the City elects to be eligible to participate in tax abatement and including guidelines and entena governing tax abatement agreements entered into between the City and various third parties, titled "NE. Basic Incentives" (LINE Z Incentives"), these axe readopted on April 22, 2003 and May 27, 2003. The May 27, 2003 N Incentives are attached hereto as Exhibit "A" and hereby made a part of this Agreement for all purposes. 10 D. The NEZ Incentives contains appropriate guidelines and criteria governing tax abatement agreements to be entered into by the City as contemplated by Chapter 312 of the Texas Tax Code,, as amended (the "Code"). 'C0, 10 &C, 4V 9A, ill E. On April 2, 2002, the Fort Worth City Council adopted Ordinance No. 15'06,1 the "Ordm" ance") establishing "Neighborhood Empowerment Reinvestment Zone No. 2," City of Fort Worth, Texas the "Zone"'). F. Owner owns certain real property located entirely in the id le. Village Como NE Z and that is more particularly described 'in Exhibit "B"', attached hereto and hereby made a part of this Agreement for all purposes (the Pre nuses"). GO, Owner or its assigns plan to construct the Required Improvements, as defined in Section 1.1 of this Agreement, on the Premises to be used for as a single-family residence that will be owner occupied. (the"Project"). H. On November 107 2003 Owner submitted an application for NEZ *incentives and for tax abatement to the City concerning the contemplated use of the Premises the "Apptication"), attached hereto as Exhibit ",C" and hereby made a part of this Agreement for all purposes. L The City Council finds, -that the contemplated use of the Premises, the Required Improvements, as defined in Section 1.1, and the terms of this Agreement are consistent with encouraging development of the Zone in accordance with the purposes for its creation and are in compliance with the NEB Incentives, the Resolution and other applicable laws, ordinances, rules and regulations. J. The City Council finds that the tenns of this Agreement, and the Premises, and Required Improvements, satisfy the eligibility cn*teria of the NEZ Incentives. K. Written notice that the City intends to enter Into tbis, Agreement, along with a r%this* A copy of this Agreement,,has been fim-lished in the manner prescribed by the Code to the presiding officers of the governing bodies, of each of the taxing units in which the Premises is located. NOW, THEREFORE, the City and Owner, for and in consideration of the terms and conditions set forth herein, do hereby contract, covenant and agree as follows: 1. OW'NER'S COVENANTS, 1.1. Real Property Improvements. Owner shall construct, or cause to be constructed, on and within the Premi'ses certain improvements consisting of a. single family residence,, (1) of at least 1 square feet in size, and built to the specifications listed in Exhibit D and it having, an appraised value of at least $140,000.00 as determined by an independent appraiser (collectively, the "Required Improvements"). Owner shall provide a survey of the completed home showing Required Improvements before the home is sold. The parties, agree that the final % -,ro 4 survey shall be a part of this Agreement and shall be labeled Exhibit E. 'nor VIMi2tionsl and more substantial variations if approved in writing by t(1 this C?W;4 2 Agreement, in the Required Improvements ftom the description provided in the Application for Tax Abatement shall not constitute an Event of Default, as defined in Section .1, provided that the conditions in the first sentence of this Section 1.1 are met and the Required Improvements are used for the purposes and in the manner described in Exhibit"D". 1.2. Completion Date of Required Improvements. Owner covenants to substantially complete construction of all of the Required Improvements within two years from the issuance and receipt of -the building permit, unless, delayed because, of force majeure, in which case the two years shall be extended by the number of days comprising the specific force maeure. For purposes of this Agreement, force ma"'eure shall mean an event beyond Owner's, reasonable control, includ" without E 'tabor delays caused by adverse weather, delays in receipt of any & required permits or approvals from any governmental authority, or acts of God, fires,, strikes,, national disasters, wars, nots, and'. material or labor restrictions and shortages as determined by the City of Fort Worth in its sole discretion, which shall not be unreasonably withheld, but shall not include construction delays caused due to purely financial matters,, such as,, without limitation, delays in the obtaining of adequate financing. 1.3. Use of Prenukes, Owner covenants that the Required Improvements shall be constructed and the Premises shall be sold so that it is continuously used as the primary residence, of the Home Buyer in accordance with the description of the Project set forth in the Exhibit "D". In, addition, Owner covenants that throughout the Term, the Required Improvements shall be operated and maintained for the purposes set forth in this Agreement and in a manner that is consistent with the general purposes of encouraging development or redevelopment of the Zone. 2, ABATEMENT AMOUNTS, T:IERMS AND CONDITIONS. Sub.ect to and in accordance with this Agreement, the City hereb grants to Owner a real J Y property tax abatement on the Premises, the Required Improvements,, as specifically provided in this Section 2 ("Abatement"). ""Abatement"' of real property taxes only includes City of Fort Worth-imposed taxes and not taxes, from other taxing entities. 2.1. Amount of'Ab ate ment. The actual amount of the Abatement granted 'under this Agreement shall be based upon the increase in value of the Premi'ses and the Required Improvements, over their values on January 1, 2003 ($17,040.00) the year in which this Agreement was entered *into-. io V7 3 One Hundred percent (100%) of the increase in value from the construction of the Required Improvements. If the square footage requirement and the appraised value of the Required Improvements are less than as provided in Section 1.1 of this AgTeement, except that such mini*mum construction costs shall be reduced by construction cost savings, Owner will not beeligible to receive any Abatement under this Agreement. 2.2. Increase M' Value The abatement shall apply only to taxes on the increase in value of the Premises due to construction of the Required Improvements and shall not apply to taxes on the land. 23 Term of Abatement. The term of the Abatement (the "Term") shall begin on January I of the year following the calendar year M"' which the Required Improvement is sold to a Home Buyer to be used as its primary residence ("Beginning Date"'), mid, unless sooner terminated as herein provided, shall end on December 31 'Immediately preceding the fifth (S') anni'versary of the Beginning Date. Upon the sale to a Home Buyer, City shall detemaine if the Required Improvements have been completed M* , satisfaction of the terms of this Agreement. City shall certify such fact. 2A. Protests Over Aapraisals or Assessments. Owner shall have the night to protest and contest any or all appraisals or assessments, of the Premises and/or improvements thereon. 2.5. Abatement ApplLcation Fee. The City acknowledges receipt from Owner of the, required, Abatement application fee of twenty-five dollars ($x,5.00) for,each application for a total of$1375. 3, 1REC01 OF PROJECT,. 3.1. Inspection of'Prenu*ses,., Between the execution date of this Agreement and the last day of the Tenn, at any time during construction of the Required Improvements and following reasonable notice to Owner, the City shall have and Owner shall provide access,to the Premises in order for the City to 'inspect the Premises and evaluate the Required Improvements to ensure compliance with the terms, and conditions of this Agreement. Owner shall cooperate fully with the City during any such inspection and/or evaluation. IR 3.2. Certification Owner shall certify annually to the City that,it is in compliance with each applicable term of this agreement. The City shall have the right to audit at the City's expense the financial and 'business records of Owner that relate to the square footage, 11 Ir cations 'in attach irea improvements spec, ed Exhibit D and appraised value of the Requ* and once the city property taxes are abated, the home owner must provide documentation that be or she is using the Required Improvements as its primary residence (cone`tively,1 the "Rec rds") at any time during the Compliance Auditing Tenn in order to determine compliance with this Agreement and to calculate the correct amount of Abatement available to Owner. Owner shall make all applicable Records available to the City on the Premises or at another location in the City following reasonable advance notice by the City and shall otherwise cooperate fully with the City during any audit. 3.3. Provision of Information. On or before Feb�ruary I following the end of every year during the Compliance -1 Auditing Term and if requested by the City, Owner shall provide information anci documentation for the previous year that addresses Owner's compliance with each of the terms and conditions of this Agreement for that calendar year. Failure to provide all information within the control of Owner required by this Section 3.3 shall constitute an Event f Default, as defined in Section 4.1. 3.4. Deter :nation of COMP,Hance. On or before August I of each year during the Compliance Auditing Tenn, the City shall make a decision and rule on the actual annual amount of Abatement available to Owner for the following year of the Term and shall notify Owner of such decision and ruling. The actual percentage of the Abatement granted for a given year of the Term is therefore based upon Owner's compliance with the terms and conditions of this Agreement during the previous year of the Compliance Auditing Tenn. 40 EVENTS OF DEFAULT. 4.1. Defined. Unless otherwise specified herein, Owner shall be in default of this Agreement if (i) Owner fails to construct -the Required Improvements as defined in Section, 1.1-, (1i) ad valorem real property taxes with respect to, the Premises or the Project, or its ad valorem taxes with respect to the tangible personal property located on the Premises, become delinquent and Owner does not timely and properly follow the legal procedures for protest and/or contest of any such ad valorem real property or tangible personal property taxes or (iii) HOME BUYER DOES NOT USE THE S S AS PRINLkRY Map n 5 ]RESIDENCE ONCE THE ABATEMENT BEGMS (collectively, each an "Event of Default"). 4.2. Notice to Cure. Subject to Section 5,, if the City determines that an Event of Default has occurred, the City shall provide a written notice to Owner that describes, the nature of the Event of Default. Owner shall have ninety (90) calendar days from the date of receipt of this written notice to fully cure or have cured the Event of Default. If Owner reasonably believes that Owner will require additional time to cure the Event of Default, Owner shall promptly notify the City in writing, in which case (1) after advising the City Council in an open meeting of Owner's efforts and intent to cure, Owner shall have one hundred eighty (180) calendar days from the original date of receipt of the written notice, or (ii) if Owner reasonably believes that Owner will require more than one hundred eighty (1 810) days to cure the Event of Default,, after advising, the City Council in an open meeting of Owner's, efforts and intent to cure, such additional time, if any, as may be offered by the City Council M* its :solle discretion. 4.3. Ter M" ation for Event of Default and Payment of Liquidated Dama2ea. If an Event of Default which is defmeld in Section 4.1 has not been cured within the time frame specifically allowed under Section 4.2, the City shall have the right to terminate this Agreement immediately. Owner acknowledges and agrees, that an uncured .Event of Default will (i) harm the City's economic development and redevelopment efforts on the Premises and in the vicinity of the Premises; it require unplanned and expensive additional administrative oversight and involvement, by the City.; and (iii) otherwise harm the City, and Owner agrees that the amounts of actual, damages therefrom are speculative in nature and will be difficult or impossible to ascertain. Therefore, upon tennination of this. Agreement for any Event of Default, Owner shall not be eligible for the Abatement for the remaining Tenn and Owner shall pay the City, as liquidated damages, all taxes that were abated in accordance with this Agreement for each year when an Event of Default existed and which otherwise would have been paid to the City in the absence of this Agreement. The City and Owner agree that this amount is a reasonable approximation of actual damages that the City will incur as a result of an uncured Event of Default and that this Section 4.3 is intended to, provide the City with compensation for actual damages and is not a penalty. This amount may be recovered by the City through adjustments made to, Owner's ad valorem property tax appraisal by the am appraisal district that has jun'sdiction over the Premises. Otherwise, this ount shall be due, owing and paid to the City within sixty (60) days following the effective date of termination of this Agreement. In the event that all or any portion of this amount is not paid to the City within sixty (60) days following the effective data of termination of this Agreement, Owner shall also be liable for all penalties and interest on any outstanding, amount at the statutory rate for delinquent taxes, as determined by the Code at the time of the payment of such penalties and interest(currently, Section 33.01 of the Code). 6, L 6 iv fNm 4-4. Termm* afion at,Will. If the City and Owner mutually determine that the, development or use of the Premises, or the anticipated Required Improvements are no longer appropriate or feasible, or that a higher or better use is, preferable, the City and Owner may terminate this Agreement in a written format that is signed by both parties. In this event, (1), if the Tenn has commenced, the Term shall expire as of the effective date of the to nation of this Agreement; (it) there shall be no recapture of any taxes previously abated; and (x.11) neither party shall have any further rights or obligations hereunder. 51 EFFECT' Off"...,,S,A,LE OF PREMISES. Except for an assignment to Ridglea Place, LP's Affiliates, Ridglea Place, LP's first mortgagee or to a homeowner who will use the Required Improvements as its 0 primary residence or the homeowner's mortgagee which City Council hereby agrees to, the Abatement granted here-under shall vest only 'in Owner and c annot be assigned to a new owner of all or any portion of the Premises and/or Required Improvements without the prior written consent of the City Council, which consent shall not be unreasonably w lfl 1 1, 1 1 cl ibeld provided that (*) the C*ty Council finds that the proposed ass'gnee 's finan *ally capable of meeting the terms and conditions of -this Agreement and it the proposed purchaser agrees in writing to assume all to and conditions of Owner under this Agreement. Owner may not otherwise assign, lease or convey any of its rights under this Agreement. Any attempted assigru-nent without the City Council's prior written consent shall constitute grounds for termination of this Agreement and the Abatement granted hereunder following ten (1 0) calendar days of receipt of written notice from the City to Owner. For the purposes of this Section, "affiliate" shall mean (1) any entity in which at least 25% of the ownership consists of individuals, partnerships, trusts (or their individual partners or beneficiafies) or other entities included whether by legal title or beneficially, in the present ownership of Owner or (11) any entity which has at least a fifty-one percent (51%) ownership interest in Owner or any entity 'in which Owner has at least a fifty-one percent (51%) ownership interest. Upon assignment to Rid lea Place, LPs afffilates, or hl*s first mortggcree,, or to a homeowner who wW use the Re 10, 1 quired Improvements as its primary residence or the homeowner's mo rtgacree Ridglea )lace Ll shall have no further obligations, or duties under this aareementO In addition, upon ass' n other ment to anv oer entit-v witu ............ the written consent of City Counefl, Rid lea Pla P shaH have no further duly or objjggfi2punder t is a re meat. In no event shall the abatement term be extended M" the event of a subsequent sale 'b or assignment. cd" 7 6, NOTICES. All written notices called for or required by this Agreement shall be addressed to the following, or such other party or address as either party designates in writing, by certified mail, postage prepaid, or by hand delivery: cit Y, 0 1 0 Owner. City of Fort Worth Michael Vick, President Attn: City Manag'er B B :boulevard uil der s, LAC 1000 Tbrockmorton General Partner for Ridglea Place, LP Fort Worth TX 76102 4809 Cole Avenue Suite#34S Dallas, Texas 75205 and Housing Department Attn.- Jerome Walker, Director 1000 Throe Orton Fort Worth, TX 761 2 7, MISCELLA-NEOUS. 7.1. Bonds. The Required Improvements will not be financed by tax increment bonds., This Agreement is subject to rights of holders of outstandffig bonds of the City. 7.2. Conflicts of Interest. Neither the Premises nor any of the Required Improvements covered by this Agreement are owned or leased by any member of the City Council, any member of the City Planning or Zoning Commission or any member of the governing body of any taxing units in the Zone, 7.3. Conflicts Between Documents. In the! event of any conflict between the City's zoning ordinances, or other City ordinances or regulations, and this, Agreement, such ordinances or regulations shall control,. In the event of any conflict between the body of this Agreement and Exhibit 46D, the body of this Agreement shall control. "S F­i 8 7A. Future Ap,,pfi,eation, A portion or all of the Premises and/or Required Improvements may be eligible for complete or partial exemption from ad valorem taxes as a result of existing law or future legislation. This Agreement shall not be construed as evidence that such exemptions do not apply to the Premises and/or Required Improvements. 7.5, Council AuthoriLzation. This Agreement was authorized by the City Council through approval of'Mayor and Council Communication No:. C-19864 on November 18, 20103, which, among other things, authorized the City Manager to execute this Agreement on behalf of the City.' 7.6. E ppel Certificate. Any party hereto may request an estoppel certificate from another party hereto so �& 'The long as the certificate is requested in connection with a bona fide business purpose. certificate, which if requested will be addressed to the Owner, shall include, but not necessarily be lirmted to, statements that this Agreement is in full force and effect without default (or if an Event of Default exists, the nature of the Event of Default, mid curative action taken and/or necessary to effect a cure),, the remaining to of this Agreement, the levels and remaining to of the Abatement in effect, and such other matters reasonably requested by the party or parties to receive the certificates. 7.7. Owner Sta4dWg. Owner shall be deemed a proper and necessary party in any litigation questioning or challenging the validity of this Agreement or any of the underlying laws, ordinances, resolutions or City Council actions authorizing this Agreement, and Owner shall be entitled to intervene in any such litigation., 7.8. Venue and Jurisdiction., This Agreement shall be construed 'in accordance with the laws of the State of Texas and applicable!ordinances,rules, regulations or policies of the City. Venue for any action under this Agreement shall lie in the State District Court of Tarrant County, Texas. This Agreement is performable in Tarrant County, Texas. 7.9. Recordation. A certified copy of this Agreement in recordable fon-n shall be recorded in the Deed Records of Tarrant County, Texas. ro 71jr4 47), F) A J 91 7.10. Sever,a 101 If any provision of this Agreement is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of'the rernau' u'ng provisions shall not in any way be affected or impaired. 7.11. Headu'a2s Nast Controlling. Headings and titles used in this Agreement are for reference purposes only and shall not be deemed a part of this Agreement. 7'.12. Entirety of Aureement. P-." This Agreement, including any exhibits attached hereto and any documents incorporated herein by reference, contains, the entire understanding and agreement between the City and Owner, their assigns and successors 'in interest as to the matters contained herein. Any prior or contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict with any provision of this Agreement. This Agreement shall not be amended unless executed in writing by both parties and approved by the City Council. This Agreement may be executed in multiple counterparts, each of which shall be considered an original,, but all of which shall constitute one instrument. 10 U IV7V I" EXECUTED this day of 2004 by the City of Fort Worth, Texas. EXECUTED this day of 2004, by Michael Vick, CITY OF FORT WORTH, RIDGLEA PLACE, LP: ij 1�� By: 13 y: i,�a Reid Rector Michiel Vick, President, Assistant City Manager Boulevard Builders, LLC General Partner for Rid lea Place LP ATTEST.. ATTEST-., By- dity Secretary APPROVED TO FORM AND� LEGALITY: By'-7; Cynthia Garcia Assistant City Attorney M &C: G4 0? NaI J` STATE F TEXAS § COUNTY OF TAR ANT § BEFORE ME the undersigned authority, on this day personally appeared Reid Rector, Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation, known to me to be the person and officer whose name is subscribed to the foregoing instrument,, and acknowledged to me that the same was the act of the said CITY OF FORT' W RTH, TEXAS, a municipal corporation, that he was duly authorized to perform the saxne by appropriate Mayor and Council Con-imunication of the City Council of the City of Fort Worth and that he executed the same as the act of't' said City for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this ;02,71a� a day of kvrd 2004. Notary Public in and for HE,TTIE LANE the State of Texas COMMISSION EXPIRES& July 26,2007 Notary's Printed Name V MF V t.e 12 STATE OF TEXAS § COUNTY OF TARRANT § AL6J( 00' BEFORE ME, the undersigned authority, on this day personally appeared 'I WIP I V'( �e known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed, in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day o f .4610,� ",U C J, 2004. F. No y Public in and for i�terms the tote of r exas rip ............. Notary's Printed Name '0 J E D.WAR,NER AMI My COMMISSION EXPIRES :mow...... November 5,2007 4/sr,v 13 Exhibit,A-, NFZ Incentives, 4-n- ExhibiL ID I. Property Description Exhibit C. Application-. (NEZ)l Incentives and Tax Abatement Exhibit D.- Project description fficluding kind., number and location of the proposed improve fpm ryry Exhibit E: Filial Survey 14 HB' T A CITY bF FORT WORTH NEIGHBORHOOD EMPOWERMENT ZONE.(NEZ) TAX ABATEMENT POLICY AND BASIC INCENTIVES 1, GENERAL PURPOSE AND OBJECTIVES Chapter 378 of- the Texas. Local Government C s,ode! allow a municipality to create a Neighborhood Empowerment-Zone (NEZ) when a ."O.,murTicipality determines that the (ireation of the Zone would promote.- (1) the creation of affordable housing, including manufactured housing; in the zone; (2) an 'increase in economic development in the zone; (3) an increase in the quality of social services, education, or public safety provided to residents of the zone; or (4) the rehabilitation of affordable housing in the zohe.jy The` City, by adopting the following NEZ Tax Abatement Policy and Basic Incentives, will prbrhote aff6rdable housing and economic development in Neighborhood E' rhpower ont Zones. NtZ incertives will not be granted after the NEZ expiry as defined in the resolution designating the NEZ. For each NEZ, the City Council may approve additional terms and incentives, as ts full term permitted, by Chapter 378 of the Texas Lodall Government Code or by City Council re8olu-tibn. 6' " H 'w ever, any tax abatement awarded before the expiration of a NEZ sh,-�Il carry i according to its tax abatement agreement approved by the City C, ouncil. As M' 'andated by�tbt6 law, the property tax abatement under this policy applies to the owners of' real Propefty. Nothing in the policy shall be construed as an obligation by the City of Fort Worth to alprbw any tax abater:n1eht application. If. DEFINITIONS "Ab8temene means the full or 'Partial exemption from City of Fort Worth ad valorem taxes on eligible properties for a period of up to 10 years and an amount of up to 1'00% of the increase in appraised value (a as reflected lected on the certified tax roll of the appropriate county appraisal district) resulting from 'improvements begun after the execution of the tax abatement agreement. Eligible properties must be located in the NEZ. "Bl5se Value"'is the value of the property, exclud ing land, as determined by the Tarrant County appraisal' District, durlin g the year rehabilitation occurs, "Building Standard,§ Commission" is thb commission created under Sec. 7-,7�, Artide IV.* Minimum Building Standards Code of the Fort Worth City Code. Capital Investment," 'includes only real property improvements such as new facilities and structures, site improvements, facility expansion, and facility modernization. Capital Investment May 27) 2003 does NOT include land acquisition costs and/or any existing Improvements, or personal property (such as machinery, equipment, and/or supplies -and inventory). "'City of Fort Worth T6x Abatement Policy Statement"means the policy adopted by City Council on February 29, 2000. "'Co rim erciallfndustrial Development ProjecC is a development project which proposes to construct or rehabilitate commercial/industrial facilities on property that is (or meets the requirements to he zoned commercial, industrial or mixed use as defined by the City of Fort Worth Zoning', Ordinance. "Community Facility Development Pro ject"is @ development project which proposes to construct or rehabilitate cot-nmunity facilities an property that aflows such use as defined by the City of Fort Worth Zoning Ordinance. "'Eligible Rehabilitation If i,n�cluldos only physical itprovernents to real property. Eligible Rehabilitation does NOT include personall, property (such as furniture, appliances, equipment, and/or supplies). "'Gross Floor Area" is measured by taking the outside dimension's of the blui'lldihg at each floor level, except that portion of the basement used only for utilities, or storage, and any areas within the building used for off'-street parking. "Minimum Building Standards Code"is Article IV of the Fort Worth City Code adopted pursuant to Texas Local Government Code, Chapters 54 and 214. "Minority Business Enterpn'se, (MBE)"and 'Women Business Enterprls' e BE "'is a minority or woman owned business that-has received certification as either a certified MBE or certified WBE by either the North Texas Regional Certification Agency (NTRCA), or the Texas Department of Transportation (TxDot), Highway Division. "'Mixed-Us,e Development Project" is a, development project which proposes to construct or rehabilitate mixed-use facilities in which residential uses constitute 20 percent or more of the total gross, floor area, and office, eating and entertainment, and/or retail sales and service uses constitute 10 perc nt or more of the total gross floor area and is on property that is (or meets the requirements to be zoned mixed use as described by the City of Fort Worth Zoning Ordinance. "'Multi-family Development Project" is a development project which proposes to construct or rehabilitate multi-family residential living units on property that is or meets the requirements to be zoned multi-family or mixed use as defined by the City of Fort Worth Zoning Ordinance, JU "roject means a "'Residential Project', "Comm erciallIndustria] Development Project'"Community Facility Development Project", 'Mixed-Use Development Project-' or a "Multi-family Development Project.' "Reinvestment Zone" is an area designated as such by the City of Fort Worth in accordance w'th the Property Redevelopment and Tax AbatemIent Act codifie' f 1!7 2­­of the Texas p ", rie' Z Tax Code, or an area designated as an enterprise zone pursuan i �i,E t rp r,ise one Act, codified in Chapter 2303 of the Texas Government Code. ,1 1Z 1 ff, May 27,,12010_-) 2 Ill. MUNICIPAL PROPERTY TAX AB:ATE M-ENTS A. RESIDENTIAL PROPERTIES LOCATED IN A NEZ 1. For residential property purchased before NEZ designation, a homeowner shall be eligible to apply for-a tax abaternent by meeting the followl'irig: a. Property is owner-occupied and the primary residence of the homeowner prior to the final NEZ designation. Homeowner .shall prow ,ide proof of ownership by a warranty deed, affidavit, of heirship, or a probated will, and shall show proof of primary residence by homestead exemption; and b. Property is rehabilitated after NEZ designation and City Council approva,l of the tax abatement. c. Homeowner rn,ust perform Eligible Rehabilitation on the property after NEZ designation equal to or in excess of 30% of the,Base Value of the property; and d. Property is not in a tax-deli'nquient status when the abatement application is submitted. 2. For residential property purchased after NEZ designation, a- homeowner shall be eligible to apply for a, tax abbtement by meeting the following: a. Property is constructed or rehabilitated after NEZ designation and City Council. a0provalof the tax abatement; b. Property is owner-occupied and is the primary residence of the homeowner, Homeowner shall provide proof of' ownership by a warranty deed, affidavit of heirship, or a Orobated will, and shall show proof of prig arvy residence by homestead exemption-, c. For rehabilitated property, Eligible rehabilitation costs on the property shall be equal to or in excess of 30% of the Base Value of the" property. The seller or owner shall provide the City informationto support, rehabilitation costs; d. Property is not in a tax-delinqluen!t status when the abatement application is submitted; and. e. Property is in conformance with the City of Fort Worth Zoning ordinance. 3, For investor owned single family property, an investor shall be eligible to apply for a tax abatement by meeting the following: a. Property is constructed or rehabilitated after NEZ designa' tioln and City Council approval of the tax abatement; b. For rehabilitated property, Eligible Rehabilitation costs, on the property shall be equal to o.r in excess, of 30% of the Base Value of the property', c. Property -is not in a tax-delinquent status when the abatement application is - submiI tted, and d. Property is in co,,nflormanc' e with the City of Fort Worth Zoning Ordinance. B. MULTI-FAMILY DEVELOPMENT PROJECTS LOCATED IN A NEZ 6 1 100% Abatement for 5 years. "ZI if an agglicant a2pl'ies, for a tax abatement agreem t -­i� 4 five years or 71'. Bess, this section shal.] ap- May 27, 2003 3 Abatements for mul'ti-family development projects for. up to 5 years are subject to City Council approval. The applicant may apply with -the Housig Department for such abatement. The apolicant must apply for the tax abatement and be approved by City Council before c,onistruiction or rehabilitation is started. In order to be eligible for a property tax abatement, upon completion, a newly constructed or rehabilitated multi-family development project in a NEZ must satisfy the following: At least twenity per'cenit (2,0%), of the total units cons,truct,ed or rehabilitated shall be affordabfe as defined by the U. S. Department of Housing and Urban Dev�lopmient) to persons with incomes at or below eighty percent (80%,) of area median income based on family size and such units shall be set aside for persons at or below 80% of the median income as defined' by the U.S. Depaftnien*t of Housing and Urban Development City Council may waive or reduce the ,20�% affordability requirement on a case-by-cas,e basis; and (a) For a muilti-fami,ly development project constructed after NEZ designation, the project must provide at least five (5) residential living units OR have a minimum Capital Investment of$200,000; or (b) 'For a -rehabilitation project, the property must be rehabilitated after N'EZ designibtion. Eligible Rehabilitation costs on the property shall be at least 310%,of the Base Value of the property. Such Eligible Rehabilitation Costs must come from the rehabili tation of at least five (5) residential livings units or a minimum Capital' Investment of$2001,0010,, 2. 1%-100% Abatement of C! Ad Va,l'ore'm taxes lu[2 to 10,years If an applicant aoplies for a tax ablatemenit, aq.reement with a term of more than five years, this section shall g2ply, Abatements for multi family development projects for up to 10 years are subject to City Council approval. The appl'icant may apply with the Housing Department for such abatemOnt. The appilicanit must apply for the tax abatement and be approved by City Council before construction or rehabilitation is started. Years 1 throe h 5 of the Tax A,batement Agreement Wlti-famNy projects shall be eligible for 100% abatement of City ad valorem taxes for years one through five of the Tax Abatement Agreement upon the satisfaction of the following.- 0 11:�� I 61)7a ated shall At least twenty percent (201%) of the total units be affordable (as defined by the U. S. De,pl' rtrT"j-41 ) and Urban ) o f a re evelopment) to persons with incomes at or bel w eqghty,pe,rcen (8o�'� median income based on family size and su h, its�*' 8h611 be sod aside for May 27, 2003 4 persons at or below 80% of the median income as defined by the U.S, Department of' Housing and Urban Development. City Council may waive or reduce the 20% affordability requirement on a case-by-case basis; and a. For a multi-family development project constructed after NEZ,designation, the project must provide at least five (5) residential lliving units OR have a mihimum Capital Investment of$,20�0,000; or . b. For a rehabilitation project,, the p,ropefty must be rehabilitated after 1 designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property. Such Eligible Rehabilitation costs must come from the rehabilitatiotti of at least five (5) residential living Units or a minimum Caplital Investment of$200,000. Years 6 through 10 of the Tax Abatement Aciriaement Multi-fami1y pr jects shall' be eligible for a 1%-100% abatement of City ad valorem 0 taxes for years six through ten o the Tax Abatement Agreement upon the satisfaction of the following: a. At least*twenty percent (20%) of the total Units constructed or rehabilitated shall be affordable as defined by the U. S. Department of Housing and Urban Development) to persons with incomes at or below elighty percent (80%) of area median income based on family size and such units shall. be set aside for persons at or below 80%, of the median income as defined by the 'U'.S. Department of-Housing and Urban Development. City Council may waive or 0% reduce, the 2 affordability requirement on a case-by-case basis; and 11. For a multi family development project constructed after NE Z designation, the pr o e must Provide at least five (5) residential living units OR have a J minimufn Capital Investment of$2,001,000; or 2. For a rehabilitation project, the property must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property. Such Eligible Rehabilitation costs must 'Come from the rehabilitation of at least five (5i) residential living, units or a, minimum Capital Investment of$2010,0001. b. Any other terms as City Council of the City, of' Fort Worth deems appropriate, including, but not limited to.- 1 utilization of Fort Worth companies for an agreed upon percentage of the total costs for construction contracts,-1 2. utilization of certified minority and women owned business enterprises for an agreed upon percentage of the total' costs for construction contracts, 3. property inspection; 4. commit to Nre an agreed upon percentage of Fort Worth residents 5. commit to hire an agreed upon percentage of Central City residents 6. landscaping, 7. tenant, selection plans; and 8. management plans. C COMMERCIAL INDUSTRIAL AND COMMUNITY KA-�' k, IT �,�V E 0 P M E N T L Z PROA-:CTS LOCATED IN A NEZ Fly May 27, 2003 5 100% Abatement of City Ad Valorem l taxes fo[_� earq If an app,licant a,2plies for a tax abatement aqreement with a term of five gars or less this section shall a Abatements for Commercial', lndustrial and Community Facilities Development j Pr 0ects for up to 5" year area to City Council approval. The applicant may apply with the Housing Department for such abatement. The applicant must apply for the tax abatement and be approved by City Council' before construction or rehabilitation is started. In. order to be eligible for a property tax abatement, a newly constructed or rehabilitated commercial/industri'al and community facilities development project in a NEZ must satis�the following- a. A commercial, industrial or a community facilities, development project constructed after NEZ designation must have a minimum Capital Investment of $75,000; or b. For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property, or$75,000, whichever is greater. 2,. 1%-100% Abatement of City Ad Valorem taxes up to 10 Ilf an applicant applies for a tax abatement agreement with a term of more than five yeats, this section shall Abatements agreements for a Commercial, Industrial and Community Facilities Development projects for up to 10: years are subject to City Council approval. The applicant may appily with the Economic and Community Development D�partment for such abaterfierit. The applicant must apply for the tax abatement and be approved by City Coluncil bef6rb-con struction or rehabilitation is started. Years 1 through 5 of the Tax Abatement Aqreement Commercial', Industrial and Community Facilities Development projects shall be eligible for 100% abatement of City ad valorem taxes for the first five years of the Tax Abatement Agreement upon the satisfaction of'the following.* a. A commercial; industrial or a comm,unity facilities development project constructed after NEZ designation must have a minimum Capital Investment of $75,000; or b. For a f-'ehabilitation project, it must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base value of the property, or-$75,0 01, whichever is greater. IT, `3 'L May 27 2003 6 Years 6, through 10 of the Tax Abatement Agreement Commercial,, Industrial and Community Facilities Development projects shall be eligible for 1%-100%, abatement of City ad valorem taxes for years six through ten of the Tax Abatement Agreement upon the satisfaction of the following.: a. A commercial, industrial or a community facilities de- velopment project' constructed after NEZ designation must have a minimum Capital Investment of $75,000 and must meet the requirements of subsection (c), below - br b. For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property, or 75,000, whichever is greater and meet the requirements of subsection (c) below. c. Any other terms as City Council of the City, of' Fort Worth deems appropriate, including, but not limited, to 1. utilization of Fort Worth companies for an agreed upon percentage of the total costs for construction contracts, 2. utilization of certified minority and women owned business enterprises for an agreed upon percentage of the total costs 'for construction contracts; 3. commit to hire an agreed upon percentage of Fort Worth residents; 4. commit to hire an agreed upon, percentage of Central City residents; and 5. landscaping. D. MIXED-USE DEVELOPMENT PROJECTS LOCATED IN A NEZ 1. j00% Abatement of'City Ad Valorem taxes for�_y ears If an ap lies for a tax abatement agre,ement with b term of five plicant 2PQ I ive years or Jess this section shall gpLly. Abatements for Mixed:-Use Development Projects for up to 5 years are subject to City Council approval. The app-licant may apply with the Housing Department for such abatement. The applicant must apply for the tax abatement and be approved by City Council before construction or rehabilitation is started'. In order to be eligible for a property tax abatement, upon completion, a newly constructed.or rehabilitated mixed-use development project in a, NE� must satisfy the following: a. Residential uses in the project constitute 2,0 percent, or more of the total Gross Floor Area of the project� and b. Office, eating, and entertainment, and/or retail sales and service uses in the project constitute 10 percent or more of-the total Gross Floor Area of the Project, and' (1) A mixed--use development project constructed after NEZ designation must have a minimum Capital Investment of$200,000; or May 27,, 20,03 7 (2) For a rehabilitation project, it must be rehabilitated after N Z designation, Eligible Rehabilitation costs on the property shall be at least 30�% of the Base Value of the property, or$200,000, whichever is greater. 2. 1%-100% Alb,atement of City Ad Valorem ta,xe.su 1 to 1 Oyqars If an..,..,,,.a ,li ca nit ap-p lies, for a tax abatement aqreement with a term of more than fiv6 years, this section shall ap IV Abatements agreements for a Mixed Use Development projects for up to 10 years are subject to City COLincil approvall. The apolicant may apply with, the Housing Department for such abatement. The applicbrit most bpply for the tax abatement before construction or rehabilitation is started' and' the application for the tax abatement must be approved by City Council. I Years 1 throw 5 of the Tax Abate ment Agree ment Mixed Use Development projects shall be eligible for 100% abatement of City ad valorem taxes for the first five years of the Tax Abatement Agreement upon the satisfaction of the following.- a. Residential uses in the project constitute 20 percent or more of Ifhe total Gross Floor Area of the p r0i ect; and b. Office, eating and' entertainment, and/or retail sales and s,ervice uses in the, project constitute 10 percent or more of the total Gross Floor Area of the pro pct and c. A new mixed-use development project constructed after N!EZ designation must 00, 1 0- or for a rehabilitation project it have a minimum Capital Inves,tm,ent of$200, 1 must be rehabilitated after N'IEZ designation. Eli'g�[ble Rehabilitation costs on the property shall be at leapt 0% of the Base Value of the property, or $200,000, whichever is greater. Years, 6 throe 10 of the Tax Abatement Agreement Mixed Use Development projects shall he eligible for 1-100% abatement of City ad valorem i taxes for years six through ten of the Tax Abatement Agreement upon the satisfaction of the following: a. Residential' uses in the project constitute 20, percent or more of the total' Gross Floor Area of the project; and b. Office,1 eating and entertainment, and/or retail sales and service uses in the p r0i ect constitute 1,0 percent or more of the total -611" M wo lll project, c. A new mixed-use development project construct d 4g n, Lion must ft�rti pro i have a minimum Capital Investment of$200,000; or, "'on ect must be rehabilitated after NEZ designation. Eligiple ts on the May 27, 2003, 8 property shall be at least 30% of the Base Value of the property, or $200,000, whichever is, greater; and d. Any other terms as City Council' of the City of Fort Worth deems appropriate, including, but not limited to,-, I. utilization of Fort Worth companies for an agreed upon percentage of' the total costs, for construction contracts; 2. utilization of certified minority and women owned business enterprises for an agreed u'pon percentage of the total costs for construction contracts, 3. property inspection, 4. commit to hire an agreed upon percentage of l or t Worth residents 5. commit to hire an agreed upon percentage of Central City residents 6. landscaping,-I 7' tenant sele' Iction plans; and 8. manage.ment plans,. E. ABATE M'EN'T' G U 11 DELI N ES 1. If a NEZ is located-in a Tax Increment rinancing District,, City Council will determine on a, case-by-cas,e basis, if the tax abatement incentives in Section III will be offered to eligible Projects. Eligible Projects must meet all eligibility requirements specified in Section 111. 0sect 1 pow,erment Zone, in order 2. If a Pr is located in the Woodhaven Neighborhood' Erh to be considered "eligible" to apply for a tax abatement under this Policy,, the Woodhaven Community Development Corporation and the Woodhaven Neighborhood Association, must have siubimIitted a letter of suppbrt for the Project to the City of Fort Worth 3. In order tio be eligible to apply for a tax abatement, the prbp6rty owner/developer M u s:t., a Not be delinquent in paying property taxes for any property owned by the owner/dev eloper ; and b. Not have any City of Fort Worth liens filed against any property owned by the applicant property owner/developer. "Liens" include, but are not limited to, weed liens,, demolition liens,, board-up/open structure liens and paving liens. 4. Projects to be constructed on property to be purchased under a contract for deed are not eligible for tax abatemenits,. 5. Once a NEZ property owner of a residential property (including multi-family) in the NEZ satisfies the criteria set forth in Sections III.A, E.I. and E.2., and applies, for an abatement, a pro party owner may enter into a tax,abatement agreement with the City of Fort Worth. The tax abatement agreement shall automatically terminate if the property subject to the tax abatement a reem in violation of' the City of Fort .................... Worth's Minimum, 8uilding Standards Code convicted of such violation!. Aq,�04 t IR. can only et, rt in 1,17 S 9,c io n be 6. A tax abatement granted under the criteria et rV granted once for a property in a NEZ fair a [aximum f6eh� as specified in the May 2 7, 2003 agreement. If a property on which tax is being abated is sold) the City will assign the tax abatement agreement for the remaining term once the new owner submits an application. 7. A property' owner/developer of a multifamily developiment, commercial, industrial, community faclllitie and mix -use development project in the NEE who desires a tax abatement under Sections 111.B$ C or D must.- a. Satisfy the criteria set forth in Sections 11L B, C or D, as applicable, and Sections JILEA E.2; and E3. and I kilo an plication with the Housing Department, as applicable; and b. lle ap c. The property owner must enter into a tax abatement agreement with the City of Fort Worth. In addition to the other terrns, of agreement, the tax abatement agreement shall provide that the agreement shall automatically terminate if the, owner re�ei:ves one conviction of a violation of the City of Fort Worth's Minimum BUIlding Standards, Code regarding the property subject to the abateme'n't agreement during the term of the tax abatement agreement;-and d. If a property in the NEZ on which tax is being abated, is sold, the new owner may enter into a tax abatement agreement on the property for the remaining term. 8. If the terms of the tax abatement agreement are 'not met, the City Coo-n6ill fias the right to cancel or amend the abatement agreement. In the event of cancellation, the recapture of ablated taxes shall be limited to the year(s) in which the default occurred or continued. 9. The terms of the agreement shall include the City of Fort Worth's right to: (1) review and verify the applicant's financial statements in each year during the life of the agreement prior to granting a tax abatement in any given year, (2) conduct an on site inspection of the project in each year during the life of the ' y abatement to, verify` compliance with the terms of the tax abatement agreement (3) terminate the agreement if the Project contains or will contain a sexually oriented' business (4 terminate the agreement, as determined in City's sole discretion, 1�if the Project contains or will contain a liquor store or package store. 10. Upon completion of construction of the facilities, the City shall no less than annually evaluate each project receivi,ng, abatement to insure compliance with the terms of the agreement. Any incidents of non-compliance will be reported to the City Council. On or before February 1st of every year during the life of the agreement, any individual or entity receiving a tax abatement from the City of Fort Worth shall, provide information and documentation which, details the property owner's compliance with the terms of the respective agreement and shall certify that the owner is in colm!plfance with each applicable term of the agreement. Failure to report this information and to provide the required certification by the above deadline shall result in cancellation of agreement and any taxes abated in the prior year being due and payable. 11. If a property in the NEZ on which tax is being abated Oil' or may it enter into a tax abatement'agreer-nent on the property�for ", rp,6i h, t-erm. Any I - (I r f t r sale, ass,i'gr�ment or lease of the property which is not r -,t th x abatement .......... May 27, 2003 agreement reSLAS in cancellation of the agreement and recapture of any taxes abated after the date on which an unspecified assignment occurred. F. APPLICATION FEE 1. The application fee for residential tax abiaternents governed under Section III.A is $25. 2. The application fee for multi-family, commercial, industriall community facilities and m 15(ed-use development pro'ects governed under Sections 11I.B., C. and D., is, on�e- 1 half of one percent (0.5%) of the proposed Project's Capital Investment) not to exceed $1,1000. The application fee will be refunded upon issuance of certificate of final occupancy and once the property owner enters into a tax abatement agreement with the City. Otherwise, the Application Fee shall not be credited or refunded to any party far"any reason. IV. FEE WAIVERS A. ELIGIBLE RE,CIPIE,NT-SIPROPERTIES I. City Council shall determine on a, case-by-case basis whether a Project that will contain or contains a liquor store or package store is eligible to apply for a fee waiver. 2. If a Project is located in the Woodhaven Neighborhood Empowerment Zone I in order to be considered It eligible" to appily for a fee waiver under this Policy, the Woodhaven Com' 'mUnity Development Corporation and the Woodhaven Neighborhood Association must 'have submitted a letter of support for the Project to the City of Fort Worth, 8. Projects to be constructed on property to be purchased under a contract for deed are not eligible for development fee,walvers. 4. In order for a property owner/developer to be eligible to apply for fee waivers for a Project, the property owner/developer.: a. must submit an application'to the City; b. must not be delinquient in paying property taxes for any property owned by the owner/developer or appilican�t; c. must not have any City Hens, filed against any property owned by the applicant property owner/developer,, including but not limited for weed liens, demolition liens, board-up/open structure liens, and paving liens; and d. of a Project that will contain or contains a liquor store, plack'age store or a sexually oriented business has received City Council's determination that the Project is eligible to apply for fee waivers. Ap royal of the ap lication and waiver of the fee ed to be approVal of any aspect of the Pr t. Before cdhilril"'W106 :ttgaplicant. must ensure that the proiect is located in the correct Bonin cildr- IFT J I May 2 7, 2003 B. DEVELOPMENT FEES Once the Application for NEZ Incentives has been approved and certified by the City, the following fees for services iDerfo�rmed by, the City ,of Fort Worth for Projects, in the l are waived for new construction projects or rehabilitation projects that expend at least 30% of the Base Val�ue of the property on Eligible Rehabilitation costs.* 1. All building permit related fees (including Plans Review and Inspections) 2. Plat application fee (including! concept plan, preliminary plat, final plat, short form . replat) 3. Bard of Adjustment application fee 4. Demolition fee 5. Structure moving fee 6. Coma-hunity Facilities Agreement (CFA) application fee 7. Zoning application, fee 8. 8treet and utility easement vacation application fee Other development related-fees not specified above will be considered for approval by City Council on a case-by-case basis. C. IMPACT FEES I. Single family and multi-family residential develop-ment projects ire the NEZ. Automatic 100% waiver of water,and wastewater impact fees will be applied. 2. Commercial, industrial, mixed-use, or community facility development projects in the NEZ'* a. Automatic 100% waiver of water and wastewater impact fees up, to $55,000 or equivalent to two 6-inch moters for each tommercial, industrial, mixed-use or community facility development project. b. If the project requests an impact fee waiver exceeding $55J 00 or requesting a waiver for larger and/or more than two 6-1'nch meter, then City Counci'l approlvall, is required. Applicant may request the additional amount of impact fee waiver through the Housing Department., V. RELEASE OF CITY LIENS A. ELIGIBLE RE,CIPIENTS/PROPE,RTIES 1. City Council shall determine an a case-by-case basis whether a Plroject-that will contain or contains a liquor store or package store is eligible to apply for a fee waiver. 2. If a Project is �located in the Woodhaven Neighbor ne, in order .............. to I the , be considered eligible" to apply for release of ci ,�h ve n Woodhaven Community Development Corporation anO�11 0 W o 64, o May 27, 2003 12 Neighborhood Association must have submitted a letter of support for the Project to the City of Fort Worth. 3. Projects to be constructed on property to be purchased under a contract foir deed are not, eligible for,any release of City Liens. 4. In order for a property oWner/developer to be eligible to, apply for a release of city liens contained in Section V.B., C,., D., and E. for a Project, the property owner/develloper: a. Must SUbt-hit an application to the City; b. must not be delinquent in paying property taxes for any property owned by the own er/d eve looer; b. tuist not have -been subject to a Building' Standards Comirrilission's Oirder of Demolition where the property was demolished within the last five (5) years; I c. must not have any City of Fort Worth l'iens, filed against any other property owned by the applicant property owner/developer. "Liens" includes, but is not limited to, weed liens, demolition liens, board-up/open structure 11 iens and paving Hens and d. of a Project that contains or will contain a liquor store, package store or a sexually , , .1 eiil9 oriented business has received City Council'J!s determination the be sot i,s gibiie to apply for release of City liens. B. WEED LIENS The following are eligible to apply for release of weed liens: 1. Single unit owners, performing rehabilitation on their properties. 2. Builders or developers constructing new homes on vacant lots. 3. Owners, performing rehabilitation on multi family, commercial, industrial, mixed-u8e, or community facility properties. 4. Developers constricting new multi family, commercial,, industrial, mixed-use or community facility development projects. C. DEMOLITION LIENS Builders or developers developing or rehabilitating a property for a Project are eligible to apply for release of demolitioni, liens for up to $30,,000. Releases of demolition liens in 0 excess of$30,00 are s,ubj�ect to City Council approval. D. BOARD,-UPIOPEI STRUCTURE LIENS The following are elligible to apply for release of board-up/open structure liens: 1. Single unit owners performflng rehabi'liitation on their proper-tie8. 2. Builders or developers constructing new single family homes on vacant lots., Owners performing rehabilitation on multi family, commercial, industrial, mixed-use, or community facility properties. 4. 'Developers constructing multi-family, commercial, industrial, mixed-use, or community,facility products. �,7 J W'W 6� A�J N 4 E. PAVING LIENS 'IT r",f C3 41 4 4144 May 27, 2003 13 The following are eligible to apply for release of paving liens: 1. Single unit owners performing rehabilitation on their properties. 2. Builders or developers constructing new homes on vacant lots. 3. Owners performing rehabilitation can multi-family, commercial, industrial, mixed-use, or community facility properties. 4. Developers constructing multi-farnily, commercial, industrial, mixed-use, or commiunity facility projects. VI. PROCEDURALSTEPS A. APPLICATION SUBMISSION d Vst te a 1. The applicant for NE I Z incentives under Sections ll. IV. an . mu comple nd ) submit a City of Fort Worth "Application for NEZIncentives" and pay the appropriate application fee to the Housing Department, as applicable. 2. The applicant for incentives under Sections III.C.2 and D.2 must also complete and submit a City of Fort Worth "Application, for Tax Abatement" and pay the appropriate! application fee to the Economic- DeveloPment Office. The application fee, review, evaluation and approval will be governed by City of Fort Worth Tax Abatement Policy Statement for Qualifying Development Projects. B. CERTIFICATIONS FOR APPLICATIONS UNDER SECTIONS 111. IV, AND V 1. The Housing Department will review the application for accuracy and compk�teness. Once the Housing Department determines that the aplplicbtion is complete, the Housing Department will certify the property owner/developer's eligibility to receive tax abatements and/or basic incentives based on the criteria set forth in Section Ill., IV., and V. of this policy, as applicable. Once. an applicant's eligibility is certified, the Housing Department will inform appropriate departments, adminisitering the incentives. An orientation meeting with City departments and the applicant may be scheduled. The departments include: a. Housing Department,.- property tax abatement for residential properties and multi- family development projects, release of City liens. b. Economic Development Office: property tax abatement for commercial, industrial, community facilities or mixed-use development projects. c. Development Department.- development,fee waivers. d. Water Department: impact fee waivers,. e. Other appropriate departments, if applicable. 2. Once Development Department, Water Department, Economic Development Office, and/or other appropriate department receive a certified application from the Housing Department,, each department office shall fill out a "Verification of NEZ Incentives for Certified l Incentives Application" and return it to the Housing Department for record keeping and trading, T'OS C. APPLICATION REVIEW AND EVALUATION FOR APPLIC -1 N , May 27, 2,003 14 Al Property Tax Abatement for Residential Properties and Mullti-family Development Pro ts a. For 2 completed ands certified application for no more than five years of tax abatement, with Council approval', the City Ma,nager shall execute a tax abatement agreement with the applicant., b. For a completed and certified multi-family development project application, for more than five years of tax abatement: (1) The Housing Department will evaluate a completed and certified application based on (a) The project's increase in the value of the t,ax.bas,el. (b) Costs to the City (such as infrastructure partic1 pat ion, etc.). (c) Percent of construction contracts committed to® (1) Fort Worth biased firms, and (111) Min�6rity and Women Own'ed Business Enterprises (M/W8Es), (d) Other items which the City and the applicant may negotiate. (2) Consideration by COLinciJ Committee. Based upon the outcome of thle evaluation, Housing Department may present the application to the City Council's Economic Development Committee. Should the Hou8ing Department present tl e! application to the Economic Development Committee, the Committee will consider the application at an open meeting. The Committee, may.* (a) Approve the application. Staff will than incorpbrate the application into a tax abatement agreement which will be sent to the City Council with the Committee's recommendation to approve the agreement;, olr (b) Request modifications to, the application. Housing 'Department staff will discuss the suggested modifications with the applicant and then, if the reOuested modifications are made, resubmit 'the modified application to the Committee for consia I eration" or (c) Deny the application. The applicant may appeal 'the Committee's finding by requesting the City Council to: (a) disregard the Committee's finding and (b) instruct city staff to incorporate' the application into a tax abatement agreement for future consideration by the City Council. (3) Consideration by the City Council The City Council retains, sole authority to approve or deny any tax abatement agreement and is under no obligation to approve any tax abatement application or tax abatement agreernent. The City of Fort, Worth is under no obligation to provide tax abatement in any amount or value to any applicant. c. Effective Date for Approved Agreements All tax abatements approved by the City Council will become effective on January I of the year following the year in which a Certificate of Occupancy (CO), is issued for the qualifying development project (Linless otherwise specified in the tax abatement agreement). Unless otherwis, s. I eme,nt, taxes Z.4 I levied during the construction of the projects be.tim It1w, V1 q'Mpwud NF U11 May 27, X003 15 2. Property Tax Abatement for Commercial, Industrial, Community Facilities, and Mixed-Use Development Projects a. For a completed and certified application for no more than five years of tax abatement, with Council approval, the City Manager shall execute a to abatement agreement with the applicant. b. For a completed and certified appl'ication for more than five years of tax abatement.- (1) The Economic Development Office will evaluate a completed and certified application based on.- to ('a) The project's increase in the value of the tax base. (b) Costs to the City (such as infrastructure participation, etc.). (c) Percent of construction contracts committed to: (i) Fort Worth based firms, and (11) Minor lty and Women or Business Enterprises (M/WBEs). (d), Other items which the City and the applicant may negotiate. (2 Consideration by Council Committee Based upon the outcome of the evaluation the Economic Development Office may present the application to the City Council s conorni c Development Committee. Should the Economic Development Office present the application to the Economic Development Committee, the Committee will consider the application at an open mleetingi. The Committee may. (a) Approve the apiplication. Staff will then incorpoate the application into a, tax, abatement agreement Which will be sent to the City Council with the Committee 11 s recommendation to approve the agreement; or (b) bequest modifications to the application. Economic Development Office staff will discuss the suggested modifications with the applicant and then, if the requested modifications are made, resuornit the modified iapplicatilon to the Committee for consideration or (c) Deny the application,. 'The appilican�t may appeal the Committee J s finding by requesting the City Councilto.- (a) disregard the Committee's finding and (b) instruct city staff to incorporate the application into a tax bbaternC�nt agreement for future consideration by the City Council. (3:), Consideration by the City Council The City Council retains sole authoritytO approve or deny any tax abatement agreement and is under no obligation to approve any tax abatement application, or tax abatement agreement. The City of Fort Worth is under no obligation to provide tax abatement in any amount or value to any applicant. c. Effective Date for Approved Agreements All to abatements approved by the City Council will become effective on January I of-the year following the year in which a Certificate of Occupancy (CO) is is-sued for the qualifying development project (unless otherwise specified in the tax abatement agreement). Unless otherwise specified in the agreement, taxes levied during the construction of the project shall be due and payable. May 27� 2003 16 3. Development Fee Waivers a. For certified applications of development fee waivers that do not require Council approval, the Development Department will review the certified applicant's application and grant appropriate 'Incentives. b. For certifid' pplicat i' a ons of development fee waivers that require Council e approval, City staff will review the certified applicant's application and make appropriate recommendations to the City Council. 4. Impact Fee Waiver a. For certified applications of impact fee waivers that do not require Council approval, th-e Water Department will review the certified applicant's application and grant appropriate incentives. b. For certified applications of impact fee waivers, that require Council approval, the Water Department will review the certified applicant's' application and make appropriate recorntnendations, to the City Council. 5. Release of City Liens For certified applications of release of City liens, the Housing Department will release the appropriate liens. V11. THER INCENTIVES A. Pla reviews of proposed development projects in the NIEZ will be expedited by the Development Department. B. The Cpl Council may add the following incentives to a NEZ in the Resolution adopting the NE Z.- 1. Municipal sales tax refund 2. Homebuyers, assistance I Gap financing 4. Land assembly 5. Conveyance of tax foreclosure properties 6. Infrastructure improvements 7. Su port for Low Income Housing Tax Credit (UHTC), applications 8. Land use incentives, and zoning/building code exemptions, e.g.,, mixed-use, density bonus, parking exeMption 9. Tax Increment Financing CTl F i 101. Public Improvement District (PID), 11,Tax-exempt bond financing 12. New Model Blocks 13. Loan guarantees 14. Equity investments 15. Other incentives that will effectuate the intent and purposes of NEZ. May 27) 2003 17 ro ollo Vill. Ineligible Projects The following Projects or Businesses shall not be eligible for any incentives under the City of Fort Worth's Neighborhood Empowerment Zone (NE Z) Tax Abatement Policy and Basic Incentives': Sexually Oriented Businesses W rn 11, May 27 20103 18 I J",XHIB,IT B rL Property Description 3803 Westridge Ave., Block IR Lot 7, Ridglea Place Addition r + .,FORT WORTH w Application "` . CITY OF FORT WORTH NEIGHBORHOOD P ZONE ) ]PROGRAM , PROJECT CERTIFICATI ONA.PPLI CATION FORM C FOR DEVELOPMENT PROJECTS I. APPLICATION CHECK LIST Please submit the fallowing documentation., A completed a plicatio*n form A list of all properties owned by the applicant in jort Worth Application fee cdshier's check or money order car tax abatement applications only. For multifamily, commercial, industrial,, commercial facilities, and mixed-use abatement applications.- 0.5% of the total Capital Investfent o' f'the project, not to exceed $1,01001.010; For single family tax abatement applications: $25 per house) Proof of ownership) such as a warranty deed:,,affidavit of heirship, or a probated will OR e� ence of site c nt of , such as option to buy Title abstract of the prop rty(optiona For Rehabi. tat on Projects M Ell, A completed se �' Rehabilitation Memodel) 'ian ar list of rehabilitation costs* (fblr a. a ica.tions vi tax abatements and development fee wai'ers for rehab projects only), gligi e rehabilitation includes only physical improvements to real property. It does NOT include ersona property such as furnituxe, appliances, equipment, and/or supplies., Total eligible rehabilitation costs shall equal to or exceed.30% of the Tarrafit Appraisal District T appraised value of the striiUdre during the year Y V MUST APPLY FOR TAX ABATEMENT BEFORE ANY BUILDING PERMITS ARE ISSUE. YOUR PROPERTY if APPLICANT AGENT INFORMATION t� cps P � 1. Applicant 2. Contact Person: Joia Kline 1 4 3. Address: t . Oak La Suite 450 Dallas M... TX 75219 Street City State ,alp . Phone 214 559-484 214 X59-3347 6. �" �` '" ���� Sri� �°�.� m ail e dcorri a @cress da as,� om 7. Agent any) Joe Kline 8. Address-, Ma � ��� .� ���. � �` � �'tr�„ '�� 76104 treet City tate Zip 9. Fax .: Phone n �" � I s 11. Email: ; co swbe11.net If you need further information or clarification, please contact Enka Anderson at 39:2-7507 or 'F,lizee AE chel at 8 7 392-7336. nm FORT III. PROJECT ELIGIBILITY 1. " addresses �� i 'os the project and other properties your Please lust n organization owns n or Worth. Attach metes and bounds description if no, address or legal description is available. Attach an exblibit showing the location of the ro es . Table I Property Ownership Address Legal,Description Code Subdivision Lot No., Block NO. (Project Location) 37010, W t� � ��ge A 61 6 Ridgeway M � 308 E mlkn 08 Calhoun St, 761 F , .Ors 1 Town I, ' Jones 0 3107 E. Weatherford St, �6102 jFt.W.0rJ'_gi-na1 Toim 6B 309 E. Weatherford St. 7 6102 -w F .W.Or � 3014 E. Bgjknap St (Please at,tach additional sheets of paper as,needed.) 2,. For each properties listed in Table 1,please checks the boxes below to indicates ifil there are taxes due- or 0 there are City liens, or you have been subject to a Building Standards Commission's Order of Demollition where the property was c is e 'thin the last five years. Table 2 Property Taxes and City Liens Address Property Liens on Property a ie,s Weed Board-up/Open Dem i ion Pa-ving Order off' Due Liens Stucture Liens Liens L 1*4h s, niolli ion I ...I I El I i El 0 E I Ej I I I 1:1 11 0 (Please attach i additionalsheets needed.) 3. Do you own other properties under other name s9 „ Yes 0 N If Yes please specify, F'W C k . ne vet merit Ltd 4. Does the proposed project conform with City of Fort Worth Z m ng? Yes No 0 If no, what steps are being taken insure compliance? S. Pro*ect Type,. Single Mull Commercial Industrial Community Mixed-Use Family Family,, Facilities 2 ORT O�RTH as Is this a new construction or rehab proiect'9 New Construction �ehab 7. What i's the status of your projlec,t? In Planning Stage, E-1 Under Construction O' Completed 8. If your project has been completed, when wasit completed? 9. How rhucb 'is the total development cost of your priojec0 10. Will the rehabilitation work* equal to at,least 30% of the Tarrant Appraisal District assessed value of the structure during the year rehabilitation occurred 1-1 Yes El No *Only physical improvements to real property is eligible., DO NOT include personal property such as fumiture, appliances, equipment, and/or supplies. V 0 11,HOW mucn is the total square footage of your pro'ect? square feet a. 4 11--S21,5,006 rn' please 12. For a simrle family homeownel ip,, mix,ed-use, or multi a i -v devel!jpme�at pi fill out the number of residential um*ts based on income range of owners, or renters 'in the following table. Table 3 Number of Residential Units and Income Ran., e I of Owners or Renters I. L?�_800/0 of"Fl** At or below 80%, of AMFI '1.. nmN°..�M d' w,a.,J ,.. ,.; ' �. �. �„"'M. Y. SIS Em� **AMFI:Area Median FamAy Income. Please see attachment for income and housm' g payment guidelines. 13. For a multifavail"y vroj-ect to be qua fed for tax abatement at least 20% of total units shall be affordable to families at or below 80% of AMFI. Check the box if you are requestjiug a waiver of this requirement. 4, 4 - 2 t dus: Y.al or comin cill LI e ifleAtt"; qVil"fe 1outage-of it _e L I nOn-residential suave. Commercial Itidustn''a unity Facilities square feet square feet square feet PLEASE ANSWER QUESTION'S NO.].0 TO NO. 1,2 ONLY IF YOU ARE APPLYING FOR A TAX,ABATEMENT. 15. How much will be your Capital Investment*** on the project? Please use the folio w' 'ling, table to provide the details and amount of'your Capital Investment(Attached additional sheets iff necessary). Table 4 Ca ita nv stineni of the I roject z" od A 'A011,C), Alp E ail 0� M MIN 3 FORTWORTH *Capital Investment iiieludes only real property improvements such as new facilities' and structures, site improvements, facility expansion, and facility modernization. Capital Investment DOES NOT include laid acquisition cosh and/or any existing improve en s, or personal pope (such as machinery, equipment, and/or supplies or inventory). facility project employees will the proij ect generate 17. For a mixed-u,se project,please lindicate the percentage ofall uses Iin theproject in the followln,g table. Table 5 Percentage of'Uses in a Mixed-Use Project Residential n W, m 1 F « I' fflIc Eating Entertainment Retail sales Service W r ,: ,,, «' ,. " :. 4W .N xd,., " .,, "'.� ° w,-� :d"�..A.. d.�„«r.,��,i, y X",�,M� ,.0,�,'�3"��;!Y4.'.9:Wiii w''W :,�„��M"�.��✓� C U c""�` �"t r�",�»w«,w w.`'�� ���^F.,��»; .t�-, `INP.V«„M� ��,�"..m”"w,'nu,.w.�a'��"X w",.,,,.�,�W&.w•.,'.��Mk�,°�w'' "�i.M�""d",«fwp",'��.. ,,',.,w,p ��..«,�'L s x«,,.�d�, �� A.°, � ,+�'Xg� w v M HIP", Im Y . , q ,�L'"i�"''�'.�«•-"^v�a� a«�,« «..��.. w'�t,�.«.'s.�^:«�a'k a�..... W .�.,'�b wow.»,.. IV. INCENTIVES Wbatincentives lare ply for? Property bate Int . 5 ears .d!,.," F � „,W r "w 'rw'.n�"� .�".».�"•.F.....-,..»�..«��F��''". 'w." ,..�w.,,� � �r,.»,x.°awk w �w+w.^w"��. .�W�.�..»..�w Mw �X":�. »�,^w�rr w „,x� �. « ^P' « ..�:+"�k'� ""*""'"4� Ore n y � Development Fee Waivers [J1 All building plernait related fees (including Plans Review ana inspections) EA Plat (including cation fey concept plan, preliminary lit, final plat, short form replat) Board of Adjustment application fee Demolition fee Sire moving fee Community Facilities en (CFA) a ppl ication fee zoning application fee D Street and utility ease e vac,a, n a l ca fee Im,pact I Fee Waivers Impact fee waiver Meter Size How many meters? Release m Liens Weed liens Board up/open structure liens Demolition liens Paving liens 4 ORT WORTH , x r VAX AC W L D G NT'S' hereby certify that the Information provided is true and accurate to the best of my knowledge, hereby « w zD c e ge that have,rece ved a cc of Z as c Incentives, which geave ns the antra of tax abatements, � � fee waivers and release of City liens, and that any VIOLATION of the terms of the NEZ Basic Incentives or MISKEPRESENTATION shall coast t to grounds for rejection of an application cr termination of Incea t ves at the discretion of the City. understand that the approval of fee waivers and other incentives shall net be deemed to be approval of any aspect of the prp ect" I understand that I am responsible is obtaining required permits and inspectional from the City and is ensuring the project is ,located in the correct zoning district. agree to provide any additional information for dete " ng eligibility as requested by the City. -4HL 6C- (TYPED NA?VIE) (A THORIZED SIGNATURE) (DATE) rt r. .. ;»",«w '� m '� «d �4-�'" a ,, w as fi"� «� m r, w,�".•' ^. .„r'«�. aa«,;y«,.• " ��~4 r p':. w ;:'. „�:, � � � '4 ,y',,: .. «u^� •a r�w. � ... �m«��... «Y� t. �«.,..... W.w .r-m.^ � + &:.� « ,�, w;� •�*:.y..r , ..... *'- L- n, ,.«.1 « wry Xa 44 W C W �i � ., .;,. w Wy w � •, r X7^w »gym r� & n ,• y�y � � � � S�� x .. ..�'+d"�i- « w't«�3i'.X .a»: •-... r.. .,w ^s'"m4,.�. . .•�. M"M Electronic version ofthis form is available b re uest• Please call 817-392-7507 to request a«copy. Por more information on the NEZ Program,please visit our web site at N ortwo rt gov.or/hoU : . For Office Use Only � � ����'k'.4«�:� dJf..�'�..�''�aa �..�"�, �4"""�"� ...�. �� L«',l ���r ' .... �W. w � �`�, �RrX�„� «""�w :,«.�•w'ti;,n..,...wdX..�..,,. •• r'a...«w«. .. , Application Beaton Ccm leted Date(Received I Date).- Conform with Zorn Yes N Type? SF E],MultifaTnily D1 Conunercial L Industrial Community facilities El Mixed-Use Construction comp etio date? EJ Before After,NEZ Owners p S rte Control Yes 0 No TAD Ac6ount No. 611IZ545 .w Consistent with.the NEZ plan? "des 0 N " Meet affordability test? Yes. Na Minimum Capital Investment? Yes LINO Rehab at or higher than,,3 %I?I Yes []No Meet ' ed-use defm t caa " Yes No Tax current on,this rope Yes No Tax current ent en ether properties? Yes No C4 liens on this property.? City liens on other properties? e Weed liens E' Yd's No a Weed liens Yep I e Bard-up/open structuxe liens 0 Yes No * Board-up/'open structure l ens Yes No * Demolition liens 0 Yes XNo o Demolition liens « ElYes RI No mm. # Paving liens Yes XNo, * Paving ens o es No Order of demolition �0 pie Wa°. Certified.? Yes No Certified by certification Referred to.. p g ` [LTPW WE WOMEN%" Revised December 31,2002 FoRTWORTff V. ACKNO"WLEDGMIENTS I hereby certify that the information provicied is true and accurate to the best of my knowledge. I hereby acknowledge that I have received a copy of'NE,Z Basic Incentives, which governis the granting of tax abatements, fee waivers and release of City liens, and that any VIOLATION of the terms of the NEZ Basic Incentives or MISREPRESENTATION shall constitute grounds for rejection of an application or termination of incentives at the discretion of the City. I understand that the approval,of fee waivers and other incentives shall not,be deerned to be approval of any aspect of the project. I understand that I am responsible in,obtaim'ng required permits and inspections from the City and 'in ensurmg me project is located in the correct zoning district. I agree to provide an,y additional information for detennining eligibility as,requested by the City. Mu( i I.."L F.,R 0:3 (TYPiED NAME) (AUTHORIZED SIGNATURE) (D�ATE) N I a "�I# �D, vni "'01 td' 11'1��'S-ftl&0 7 /......... '2 73'27,&,,� 9, 7 in tw .............. Electronic version of this form is available by request. Please call 817-392-7'5071 to request a copy. For more information on the N­EZ Progam,please visit our web site at www.fortworthgov,,ororr/ho�usi"ug. For Office Use Only AppilicationNo., p,,,,N- In which NEZ9. Council District Application Completed Date(Received Date)l. Conform with Zonffig'? S]Yes LNo, Community fac i I Mixe d-Use Type? SF LJ Multifamily Commercial Industrial I Itle!s Li Construction completion date.9 Li Before NEZ After NEZ Ownership/Site Control 0, Yes El No TAD Account No. Consistent with the NEZ plan? Yes No Meet affordability test? No Minimum Capital Investment? L J Yes No, L Yes L_JI Rehab at or higher than 30%,"? E Yes EJ No Meet mixed-use definition? E Yes El No Tax current on this property? Yes No T4u current on other properties,.? El Yes No City liens on this property? City liens on other properties,'.? Weed liens Yes No * Weed liens Yes, No Board-up/open structure liens Yes No * Board-up/open structure liens, Yes No Demolition liens LJ Yes No * Demolition liens, Yes No Paving liens Yes No Paving Iiiens D Yes JZ'No Order,of demolition L__J Yes No Order of demolition 0 Yes DK'No Certified? 0 Yes Ej No Certified by Date certification issued? Tf not nertlifle-d req-qnn ReferTed to-. DEconomic Develop ent 91-lousffig IgDevelopment 2Water X'Coide TKTPW mm"0000 11 Revised April,15�20013 5 Project D escrU on, Standard Amenities EXTERIOR., 0 8' insulated front door with glass insert. 0 161 metal overhead doors. 0 Metal awnings. Lawn sprinkler system, comm,unity controlled (private backyards optional). Private back yards (select townhomes). Balconies on all 3-story townhomes. 8" and' 6' privacy wood' fens ng. Full, landscaping. Guttering on front aired rear. 0 Community pool. 0 Brick and cementuous siding construction. INTERIOR: 0 10" ceilings on Living Rm. floors and 9' ceilings on other floors. 0 2-car attached garage with opener. 0 Recessed, can lighting throughout. 0 Art niches. 4b TV and teiepholne pre-,wire. 0 Security system pre-wire., Audio and home theater pre-wire. 0 Nickel dooir hardware. is Vinyl clad wire shelving. Ceramic tile entry. ITC H E N: IAN Oak cabinetry. 41" tall upper cabinets. Granite slab countertops. Ceramic tile floor. Stainless steel sink with disposer., Moen upgraded pull-out faucet. Whirlpool appliances Gas drop/slide-in range. Dishwasher. Microwave built-in. • Under•cabinet lighting pre-wire. 0 Full i size pantry closet. • Island with raised granite bar top (standard on select townhomes), BATHROO MS: 0 Ceramic tile floor in Master Bath & Powder Room. 0 Roman tub in Master Bath,. 0 Separate 4,8," walk-in shower in Master Bath. 0 Upgraded faucets in faster Bath. Full height mirror in Master Bath. 0 Solid surface countertops,. 0 2 drop-in china bowls in Master Bath. 36" high vanity cabinets. Recess can fighting. Separate toilet room in Master Bath. Decorative picture frame mirror in Powder Room. Pedestal sink in Powder Room. 60" tub / shower in Guest Bath. QUALITY CONSTRUCTION: �,Rqkneered fouiRdation. eered door and roof trusses. 1'614 L Engin 2 0 Copper water lines. 0 Copper electrical wiring. I 0 2 hour fire wall ass ernbly between townhornes. ENERGY FEATURES: 50 Gallon gas water hea,te,r'. 2 gas HVAC systems. R-30 blown insulation in attic. R-13 Batt insulation in perimeter walls, R-11 Batt insulation in bath walls. OPTIONAL UPGRADES,: Gas fireplace. 3rd Bedroom package. Built-in, c,abinetry in Study. Island, with raised granite bar top (standard on select townhomes), Countertops, floom ng, electrical, plumbing and blinds. OTHER FEATURES: 1588, to 2270 sq., feet Minimum 2 bedrooms,, 2 batbrooms 3 lip u r, two v 7 luxe s o% &' 0"m rt Wo�r-'A JM AM& Ma% ,,or an uni'cation Y d uounci COUNCIL ACTIOW, Approved on 11/18/2003 'Tuesday, November 18, 2003 DATEM LOG NAMEI,,-, 051BLVD BUILDERS REFERENCE NO.: C-19864 0 SUBJECT, Approval of Tax Abatement Agreement with Ridgilea Place,, LP for 55 Real Estate Properties Located in the Ridglea Village/Corno Neighborhood Empowerment Zone RECOMM Ell DATIO N It is recommended that the City Council: 1. Approve a five-year Municipal Property Tax Abatement, for each of 55 Real properties, listed in Exhibit, "A", owned by Ridglea Place, LP and located in the Ridglea Village/Como Neighborhood Empowerment Zone (NEZ) for the development of town,hiomes; and 2. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement with Ridglea Place, LP are true and, correct; and 3. Authorize the City, Manager to enter into a separate Tax Abatement Agreement with Ridglea Place, LP for each of the properties listed on Exhibit "A"" in accordance with the NEZ Tax Abatement Policy and Basic Incentives. DISCUSSION: Ridgilea Place,, LP is the owner of the 55 properties listed in Exhibit "A". The real properties are located in the Ridglea Village/Como FEZ and Neighborhood, Empowerment Reinvestment Zone; No. 2. Ridglea Place, LP applied for a five-year municipal property tax abatement under the NEZ Tax Abatement Policy and Basic Incentives (M&C G-13208R, M G-13580 and M&C Gi-1366�2, as amended). The Housing, Department reviewed the appilication and certified that the properties meet,the eligibility criteria to receive NE,Z municipal property tax abatement. The NEZ Basic Incentives offers a five-year municipal property tax abatement on the increased value of improvements, to the qualified owner of any new home constructed within a, NEZ. Ridglea Place, LP will invest, at a minimum, $6,215,000 to construct 55 town homes in the Ridglea/Como NEZ. In order for Ridglea Place, LP to qualify for the tax abatement, Ridglea Place, LP must construct the townhomes, with a minimum of 17010, square feet that will appraise for $140,000. A more detailed description of the homes to be constructed is attached as Exhibit "B". The form of the Tax Abatement Agreement is attached as Exhibit"C", Upoin execution of the agreement,, the total assessed value of the home used for calculating municipal I property tax will be frozen for a five-year period, starting on January 1, 20014, at the estimated pre- 4 improvement value as defined by the Tarrant Appraisal District (TAD) on January 1, 2003, for each one of the properties as follows: Pre-improvement TAD Value of Improvements $0 Pre-improvement Estimated Value of Land, $17,040 Total Pre-improvement Estimated Value $17tO4O The municipal property tax on the improved value of the homes is estimated at $684 per year on each 60 properiy for a total of $188,1 0:0 over the five-year period for the 55 homes. However, this estimate may be diffe,rent from the actual, tax abatement, value, which will be'cal culated based on the TAD appraised value of the property. Upon the sale of-the home, the agreement will be assigned to, the new owner, so long as the new owner meets all eligible criteria as stated in, the NEZ Tax Abatement Policy and Basic Incentives. The Tax Abatement Agreement provides -that the agreement may be assigned without subsequent City Council approval to Ridglea PiDuce, LP's first mortgagee,1 or to a, homeowner who will use the re�quired improvements as his,/her primary residence or the homeowner's mortgagee. All other assignments must be approved by the City Council. Ridglea Place, LP is located in COUNCIL DISTRICT 3. F1SCj%L KFORM AT IONIC ERT1 F1 CATI ON: The Finance Director certifies that this action will have no material effect on City funds. TO Fund/Acclount/Centers; FROM Fund/Accoun1t/Cegter_$ Submitted'for C,i Mangger's Off ice, I ty- Reid Rector (61,40) Origina,fina Department Head: Jerome C Walker(7537) Addlitional, Information Contact: Jerome C Walker (7537), ElIzee Michel (7336) *7_"s1w1R0N I OV5,401"r IMMIP 0_1"Mm'Ims.0""W"mmmmor 10 pl,%MMWOOMI MOMMIMA"10 mo Wmq."msr"_ O'l qWMN0 MIN M1 F ."w"'',11MV-1100MM lee,R