HomeMy WebLinkAboutContract 28124STATE OF TEXAS §
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TAX ABATEMENT AGREEMEi�iT FOR PROPERTY LOCATED IN A
l�EIGHSORHOOD EMPOWE1tME1lTT ZONE .
Tlus TAX ABATEMENT AGREEMENT {G4Ag�'CeinCIl�ri) is entered inko by and
between the CITY OF FORT WORTH, TEXAS (the "City"), a home rule municipal
corporation organized under the laws of t�e State of Texas and acting by and through
, its duly authorizcd Assistant City Manager, and the Fort Worth
Housing Finance CorporaYion, a non-profit housing development
corporation, ("Owner"), acting by and through Jerome WaIker, its duly
authorized Owner�' Representative. .
The City Council of the City of Fort Worth {��Cit� Council") hsreby �inds and the City
and Owner her�by agree that the following statements ara true and correct and constitute the
basis upon which the City and Owner have entered into this Agreernent: �
A. Chapter 378 of the T�xas Local Gavernment Cade allows a municipality to create
a Neighborhood Empowerment Zone (NEZ) if the rnunicipality determines that
the creatio� of the zone would pramote:
1. The creataon of affardable housing, including manufactured housing in the
B.
zone;
2. An increase in economic de�elopment in �he zone;
3. An increase in the quality of social services, education, or public safety
pravided to residents •of the zone; or
�. The rehabilitation of affordable housing in the zone.
Chapter 378 of the Texas Local Go�ernment Code provid�s that a municipality
that creates a NEZ, may enter into agreements abating municipal praperty taxes
on property in the zone.
C. On JuIy 31, 2001, the City adopted basic incentives %x property owners who own
property located in a NEZ, stating that the City elects to he eligible to participate
in tax a6atemant and including guideli�es and criteria �aveming tax abatement
agreem�nts entered into between the City and various third parties, titled "NEZ
Basic Incentives" ("NEZ Yncentives"}, which is attached hereto as Exhibit "A"
and hereby made a part of this Agreerrient for all purposes.
D. The NEZ IncenEives contains appropriate guidelines and criteria governing tax
�batement agreements ta be entered into by the City as contemplai�d by Chapter
312 of the Texas Tax Cade, as amended (the ��Code").
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E. On September 11, 2001, the Fart Warth City Council adopted Ordinance No.
147b7 (the "Qrdinance") establishing °`Neighborhood Empowerment
Reinvestrnent Zflne No. 1," City of Fart Warth, Texas (the "Zone").
F. Owner owns certain real property located entirely within the Zone and that is
more particulariy described in Exhibit "B", atiached hereto and hereby made a
part of this Agreement for all purposes (the `�Premises").
G. Owner or its assigns plan to constru�t the Req�ired Improvements, as defined in
Sectian 1.1 of this Agreement and as described in Exhibit "C", on the Premises to
be used for as a sing�e-family residence that will be owner occupied. (the
��Project").
H. On Sep�ember 2$, 20Q1, Owner su�mitted an applicatian far NEZ incentives and
tax abatement to th� City concerning the contemplated use af the Premises (the
"Applitatiqn"), attached hereta as Exhibit "D" and hereby made a paz� of #his
Agreament for all purposes.
I. The City Council finds that the contemplated use af the Premises, the Required
Zmpravements, as defined in 5ection 1.1, and the terms of this Agreement are
consistent with encouraging develapment of the Zon� in accordance with the
purposes far its creatson and are in compliance with the NEZ �centives, the
Resolatian and o�her applicable laws, ordinances, rules and regulations.
J. The City Council finds Chat the terms af this Agreement, and the Premises and
Required Improvernerits, satisfy the eligibility criteria af the NEZ IncenCives.
K. Written not�ce that thc City intends to. enter into this Agreernent, along with a
capy of this Agreement, has been furnished in the manner prescribed by the Code
ta the presiding officers af the governing bociies of each of the taxing units in
which the Premises is located.
NOW, THEREFORE, the City and Owner, for and in consid�ration of the terms and �
conditions set forCh herein, do hereby confract, covenant and agree as follaws:
1. OWli1ER'S COVENANTS.
11. Real P�roqe�rtV Tmprovemenis.
Owner shaIl construct, or cause to be constructed, on and within the Premises
certain improvements consistin� of a single �amily residence, (i) of at least I,200 square
feeC in size, and (ii) having a constructian cost upon compietion of $ 60,000 including site
de�elopment C05t5 but st�c� minimum construc�ion casts shall be reduced by any
construction cost savings (collecti�ely, the �iRequired Impravernents"). Owner shall
provide a survey of the cornpleted home showing Required �nprovements befare the
home is sold, The parties agr�e that the final survey shall be a part flf this Agreement and
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shall be labeled Exhibit E. Minor variations, and more substantial variations if approved
in writing by both of the parties to this Agreement; in the Required Improvements from
the deseription pro�ided in the Application for Tax Abatement shall not constitat� an
Event of Default, as defined in Sectian 4.1, provided that the conditions in the first
sentence of this S�ction 1.I are rnet �nd the Required Improvements are used for the
purposes and 'm the manner dascribed in Exhibit "D".
1.2. Comnletion Date of Reauired Imnrovements.
Owner covenants to substantially complete construction of all o� the Required
Impravemenis within two years from the issuance and receipt of the building permit,
un3ess dela�red because of forc� majeure, in which case the twa years shall be extended
by the number of days comprising tha specific farce majeure. For purposes of this
A�reement, force majeure shal� mean an event beyond Owner's reasonable contral,
including, without limitation, delays caused by adverse weather, delays in receipt of any
required perrnits oz' approvals from any governmentai authority, or acts of God, fires,
strikes, national disasters, wars, riots and material ar labar restrictions ar�d sharta�;es as
det�rmin�d by the City of �ort Worth in its sole discretion, which sf�alI not be
-unreasonably withheId, but sha�l not include canstructian delays caused due to purely
financial matters, such as, without limitation, delays in the obtaining of adequate
financing.
1.3. U�e of Pr.emises.
Owner cavenants that the Required Improvements shall be consiructed and the
Premises shall be sald so that it is continuously used as ti�e primary residence af the
Hame Buyer in accordance with the description of the Project set forth in Exhibit "D°'. Tn
addition, Owner covenants that throughout the Term, the Requi�ed Irriprovernents shall
be operated and maint�ned for the purposes set fort� in this Agreer�nent and in a ma�ner
that is consistent with the general purpases af , encouraging deveIapment or
redevelopment of the Zone.
2. ABATEMENT AIVIQUAiTS. TERMS AIi�D CO�DITIONS.
St�bject to and in accordance with this Agreement, the City hereby grants to Owner a reai
property tax ai�atement on the Premises, the Required Tmprovements, as�specifically provided in .
this Section 2("Abatement"). "Abatement" of real propc:rty ta�ces anly includes �City af Fort
Worth-imposed taxes and not taxes from other �axing entities.
2.1. Amount of Abatement.
The actual amount of thc� Abatement granted under this Agreement shall be
based upon the increase �in value of the Premises and the Required Improvements aver
their �alues on January I, 2002 and accarding to the T�ar�i �,���is�i,�3'is� 'ct, this
amount is $1,004 the year in which this Agreement r�as en�ered�i�.t�i:' ��
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One Hundred percent (lOQ%) of the increase in value from the
constYuction of the Required Improvements.
If the total construction costs of the Required Zmprovernents are less than a�
provided in Section 1,1 of this Agreement, except that such minimum construction costs
shajl be reduced by constructian cost savings, Owner r�vill not be eligible to receive any
Abatemen� under this Agreement.
2.2 Term of Abaiement.
The term of the Abatement (the �`"Term") shall begin on January 1 af khe
year following the calendar year in which the Required I�nprovement is sald to a
Hame Buyer to be used as its primary residence ("Beginning Dake")�,and, unless
sooner ternunated as harein provided, shall end on December 31 immediat�ly
preceding �the fift4� (5t�} anniversary of the Beginning Date. Upon the sa�e ta a
Honrze Buyer, City shall certify that .the Required Improvements �ave been
completed in satisfactian oi the terms af this Agreernent. ,
However, tke Compliance Auditing Term wi11 begin on the date this agreernent is
executed and will end on the expiration date a� the Term.
2.3. Protests Over Anpra�� or Assessments.
Owner shall have the righ� to protest and coniest any ar all appraisais ar
assessments of the Pz'emises and/or improvements thereon,
2.4. Abatement Apt�lication Fee.
The City acknowledges receipt f�am Owner of the r�quired Abatement
application fee of twenty-five dollars ($25.Oa}.
3. RECORDS. CERTIFICATIQ� AND EVALiTATI�N (�F PROJECT.
3.1. �nspection af Premises.
Between �he execution daie of this Agreement and the last day of the Term, at any
time during construction of the Required Improvements and following reasonable notice
to Owner, �he City sha]1 have and Owner shall provide access ta the Premises in order for
the City �o inspect �he Premises and evaluate the Required Improvements to ensure
compliance with Che �tezms and conditions of this Agreement. . Owner shall cooperat�
fully with the City during any such inspectian and/or evaluation.
3.�. Certification
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Property Owner, a�d Home Buyer once the property is sold, .shalI certify annuaily
to the City. that i� is in compliance with each applicable term oi this agreerri�nt. The City
shall ha�e the right to audit at the City's expense the financial and business records of
Owner that relate to the Construction of the Project and Abatement terms and condi�iflns
{collectively, the "Retords") at any time during the Complianee Auditing Term in order
to determine compliance with this Agr�ement and to calculate Che correct percentage of
Abatement avaiIable to �wner. Owner shalI make al1 applicable Records available to the
City on the Premises ar at anoCher location in the City following reasanab�e advance
t�otice by the City and sha1F otherwise cooperate fu11y with th� City during any audit.
3.3. Provision of Information.
On or 1�efare February 1 followirig the end of every .year during the Compliance
Auditing Term and if requested by the City, Owner shalI provide informafion and
documentation for the previous year that addresses Owner's compliance with each of the
temas and conditions a� this Agreement for that calendar year.
Failure to prvyide all infor�mation within the control af 4wner required hy this Sectian
3.3 shall constitute an Event of Defauii, as de�ned in Section 4.1.
3.4. De�ermxnation o� Comnliance. .
On or before August 1 af each year during the Compliance. Audit�ng Term, khe
City sliall make a dacision and rt�Ie on the actuaI annual percenta$e of Abatement
available to Owner for ttfe foIlowing year of the Term and shalI notify Owner of such
decision and ruling. The actuaI percentage of the Aba�ement granted for a given year of
the Term is therefore based upon Owner's compliance with tha terms and conditions of
this Agreement during the previous year of the Compliance Auditing Term.
4. EVEIVT'S 4F DEFAULT.
41. Deiined.
Unless otherwisa specified herein, Owner shall be in default of this Agreement if
(i) Owner fails to cnnstruct the Required Lnprovements as defined in Section 1.1; (ii) ad
valorem real property taxes with respect to the Premises or the Project, or its ad �alorem
taxes wiEh respect to �he tangible personal prop�rty located an the Premises, become
delinquent and Owner daes nat timeiy and praperly fallow the legal procedures for
protest and/or confiest of any such ad �alorem real property ar tangible personal �raperty
taxes or (iii) Honae Buyer d�es nat use the Preir�ises as primary rc;sidence once the
abatement b�gins (collectively, each an "Event of Default").
�.�. Notice to Cure.
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Subject to Sectzan 5, if the City deternunes that an Event af Default has accurred,
the City shall pro�ide a written notice to Owner that describes �he nature of the E�ent of
Default. Owner sl�all have ninety (90) calendar days from the date of receipt of this
written notice to fully cure or have cured th� Event of Default. T�f Owner reasonably
belie�es that Owner wi�l requiz'e additional time ta cure the Event of Default, Owner shall
promptly notify the City in writing, in �+hich case {i} after ad�ising the City Councij in an
open meeting ot' Owner's efforts and intent to cure, Owner shall have ane hundred eighty
(180) calendar days fram the original date of rec�ipt of the written notice, or (ii) if Owner
reasanably believes that Owner wilI require mnre than one h�ndred eighty (I80) days to
cure t�e Event of Defautt, after ad�ising the City CounciI in an open meeting of Dwner's
effarts artd i�tent to cure, such additional time, if any., as may be offered by the City
Council in its sole discre�ion.
4.3. Termination far Event af Default and Pavment of Liauidated Dam�,��s,
If an Event af Default which is defined in Section 4.1 has not heen cured within
the time frame specifically allowed under Section�4.2, the City shali have the right to
terminate ihis Agreernent immediately. Owner acknowledges and agrees that an uncured
Event of Default will (i) karm the City's economic dr;veiopment and redeve�opment
efforts on the Premis�s and in the vicinity of the Premises; (ii) require unplanned and
expensi�e additional administrative oversigY�t and involvement by the City; and (iii)
ath�rwise harm the C�ty, and Owner agrees that the amounts af actual ciamages therefrom
are speculative in nature and wil! be difficult or �mpossible to ascertain. Therefore, upon
termination of this Agreernent for any Event af Default, Owner sha11 nat be eligihle for
the Abatement far the remaining Term and Owner shall pay the City, as liquidated
damages, al1 taxes that r�ere abated in accordance with this Agreement for each year
when an Event of Default existed and which otherwise wou3d have been paid to the City
in the absence of thxs Agreement. The City and Owner agree that this amount is a
reasonable approximation of actual damages that the City wi�l incur as a result af an
uncured Event of Default and that this Section 4.3 is intended to provide the City with
compensatian for actual damages and is not a penalty. This amount may be recovered by
the City �through adjustments made to Owner's ad valorem praperty tax appraisal by the
appraisal district that has jurisdiction over the Premises. Otherwise, this amount shall be
due, owing and paid to the City within sixty {6p) �days following the effective date af
termination of this Agreement. In the event that all or any portion of this amount is nat
paid to the City within sixty (GO) days following the effective date of termination of this
Agreement, Owner sha�� alsa be liable for all penaltie� and interest an any outstanding
amount at the statutory rate for d�linquent t�xes, as determined by the� Code at the time of
the payment of such penalCies and interest (currently, Section 33.Q1 of the Cade).
4.4. Terminatian at Will.
If thc City and Owner mutually determine that th.e development ar use of the
Premises or the anticipated Required Improvem�nts are no longer appropriate or_��a��ble,
or t�at a higher or better use is preferable, the City and O.�vr��r• ;�rn�y�, tsr-mi��;ai�� �lhis
Agreement in a written format that is signed by both parties. In tfi�s'�vE�''t,` ('i) �i���h�,�'�-m
has comrnenced, the Term shall expire as of the effective date of the ternaination of this
Agreement; (ii) there shall be no recapture of any taxes pz'eviously abaked; and (iii)
neither party shaIl have any further rights or obIigations hereunder.
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6.
City:
EFFECT OF SALE OF PREMISES.
Th� Abatem�nt granted here�nder shall vest anly in Owner .and cannot be
assigned to a new owner of aIl or any portion of the Premises and/or Required
Impro�ements without the prior written consent of the City Council, which consent sha11
not be unreasonably withheld provit�ed that (i) ihe City Cauncil finds that the proposed
assignee is finaneially capable af ineeting the terms and conc�itions af this Agreement and
(u} the proposed purcha�er agrees in writing to assume aIl ternis and canditions of Owner
under this Agreement. Owner may not otherwise assign, lease or convey any af its rights
under thzs Agreement. An� attempted assignment withaut the City Council's prior
written consent shall constitute gro�nds for terminatian o� this Agreement and the
Abatement granted hereunder following ten {IO} calendar days of receipt af written
natice from the City to Owner.
Tn no event shall the a�aatement term be exten�ed in the event of a subsequent sale
or assignment.
NOTICES.
All written notices ealled for or required by this Agreement shalj be addressed to
the follflwing, or such oCher party or addx'ess as eikher party designates in writing, by
certified mail, postag� prepaid, or by hand delivery: �
Owner:
City of Fart Worth
Attn�: City Manager
1000 Throckmorton
Fort Worth, TX �76102
7. MISCELLANEOUS.
i,l.. Bonds.
Fort Worth Hausing Finance Corporataan
1000 Throclamarton
Fort Worth, Texas 76102
The Required Imgrovements rrrill not be iinanced by taac increment bands. This
Agree�nent is subject ta rights of holders of autstanding bonds of the City.
7.2. Conflicts of Interest. --
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Neith�r the Prc;mises nor ar�y of the Required Improvements covered hy 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 t�ing
units in th� Zone. �
7.3. Conflicts Between Documents.
In the e�ent of any conflict between the City's zoning ordinances, ar other City
ordinanees or regulations, and this Agreement, such ordinances or regulations shall
control. In the event of any conflict between the baciy of this Agreement and Exhibit
"D", the body af this Agreement shall contro3.
7.4. Future AnAlication.
A portion or all of the Prernises and/or Required Improvernents may be eligible .
�ar carnplete ar partial exemptian frorn ad valarem taxes as a resuit of existing law or
future legislation. This Agreement shall not be canstrued as evidence that such
exemptions do not appiy to the Premises and/ar Required Impro�ements.
i.�. Citv Gaunci! Authorization. �
� This Agreement was authorizEd by tt�e City Council ttu�ough appravai of Mayor
and Council Communicatian No. an , which, among other
things, authorized th� City Manager to execute this Agreement on b�half of the City.
i.6, Estopnel Certificate.
Any party hereto may request an estoppel certificate from anather party hereto so
long as th� certifieste is requested in connection wfth a bona fide husiness pu�pose. The
certificate, whzch if requested will be addressed to the Owner, shall include, but nat
necessarily be lirnited to, statements that this Agreement is in fu�l force and effect
witt�out default (or if an Et+ent of Default exists, the nature of the Event nf Default and
curative actifln taken .and/or necessary to effect a cure}, the remaining term af this
Agreement, the Ievels and remaining term of the Abatement in effect, and such other
rnatters reasonably requested by the party or parties io receive the cerkificates.
7.7. Owner Standin�.
Owner shall be deemed a proper and necessary party in any litigation questioning
ar challenging the validity af this Agreernent or any of the und�rlying 1aws, ordinances,
resolutions or City Council actions authorizing this Agreement, and Ownar shall be
entit�ed to intervene in any such litigation.
7,8. Venue and .Turisdictian.
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This Agreemenk �hall be construed in accordance with the lavvs af the State of
Texas and applicable ardinances, rules, regulations or palicies of �the City. Venue for any
actian under this Agreement sY�all lie in the State District Court of Tarrant County, Texas.
TMs Agreement is performable in Tanrant Co�nty, Texas
7.9. Recordation.
A certified copy of this Agreement in recordable forzn shall be recorded in the
Deed Records of Tarrant County, Texas.
7.10. Sever�bilitv.
If any provision of this Agreement is held to be invalid, illegal or unen%rceable,
the valir�ity, legality and enforceability of the xemaining provisions shall not in any way
be affected or impaired.
'�11�. Headin�s Nat ControIlin�,.
Headings and tit3es used in this Agreement are for reference pu�pases only and
shall not �e deemed a part of khis Agreernent. �
�.12. Entiretv o� A�r�ement.
This Agreement, including any e�ibits attached hereto and any documents
incorporated herein by reference, cantains 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 contem�oraneous oral or written agre�ment is hereby
declared null and �oid to the extent in conflict with any provision of this Agreement. .
This Agreemen� sha�l 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 oi which shall be considered an original, but a�l af which shall
constitute one instrurnent.
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EXECUTED thi�da of , 2002 b khe Cit of Fort Worth
Y , Y Y �
Texas.
EXECiJTED this �day of 5����,,... ��- , 2002, by Fort Worth Housing
Finance Corporatian. � .
CITY OF FORT WORTH:
B�: , - `t. . .
Assistant City Manager
FORT WORTH HOUSING FINAI�TCE
co�o�Tro�v:
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Je o e C. Walker
ATTEST,� �
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By: _.. �_ f/.�.`. �_-.,
City�Secretary � � ��. !
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ATTEST;
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APPROVED T� FORM AND LEGALITY:
By:
Cyn`�hia Cr�rcia
Assistant City Artorney
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S�TATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, an this day personally appeared
/��i `�e(�7?�R, Assistant City� Manager of the CITY OF FORT WORTH, a municipal
corporation, known to rne to be t�e person and officer whase name is subscrib�d to the foregoing
instrument, and acknowledged ta m� that the same was the act of the sard CITY OF FORT
WORTH, TEXAS, a municipal corparation, tk�at he was duly authorized to perform the same by
appropriate Mayor and Council Communication of the City Cauncil of the City of Fort Worth
ar�d that he executed tI�e same as the act oi the said City for the purposes and consideration
therein expresaed and in the capacity therein stated. '
GIVEN UNDER MY HAND AND SEAL OF �FFICE this �day of
�Q@,"�n�J , 2002.
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Natary Public in and for
the State af Texas
'�05��,1/.9 �'�i��U��
Notary's Printed Name
=ot?�Y•P��:t R05EL�A BARNES
� � NpTAF�Y pUBLfC
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°y�,..... � Stafe of Yexss �
'�•;�oF�Comm. �xp. fl3-31-2 `
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.�u.�,,,.,,� �.,,ns�.s�.,4,4
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STATE OF TEXAS §
COUlli'I'Y OF TARRANT §
BEFORE ME, the undersigned autho�ity, on this day personally appeared�e_�.r..,� �, 4��� +���-
�� ��~�—� of Che Fort Worth Housing Finance Corporatian, a Texas non- profit corporatian,
known to me to be the person r�vhose name is subscribed to the �aregait�g instxument, and
acknowledged to me khat be executed Che same far Che purposes and consideration therein
expressed, in the capacity therein stated and as the act and c�eed o€ the Fort Worth Housing
Finance Corporation. .
GIVEN LTNDER MY HAND AND SEAL OF OFFICE this Ir���l day
of .�� � `��e �.... � � � , 20Q2. �
�J ` .� .
Notary Public in and for ��
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the State of Texas ';��; r;�r. yy��,�.�� H�+N�Tr �
=*: *� MY COMMCSSIDN EXPk4�ES x
� Januaty 27, 20D3 ;
��Rf���''� . ,�.. :#
Notary"s Printed Name ' —' ' � � � �
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Exhibit A: NEZ Incentives
Exhibit B: Property Descriptian
Exhibit C: Pro�ect description incluciing kind, number and location of the proposed
impro�ements.
Exhibit D: Ap�lication: (NEZ} Tncentives and Tax Abateinent
ExhibiC E: Final Survey
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c��r o� FORT woR-rH
WEIGI�BORHOOD EM�OWERNIENT �ON� (NE�) BAS1C 1[�CEAITIV�S
Adopfed 6y fhe Fort Worth Gity Courlcil on Ju1y 39, 2QD1 (M&C G-93208 R}
Amgnded by the Forf Worih Cify Council on Apri12, 2p�2 (M&C G-93580), July 23, 2002
{M&C G-�38B2)
I, f3�RlERAL PUR�OS� AN� O�JI�CTNES
Gha�ter 378 of the Texas �ocal Government Code allows a municipality to create a
Neighiacarhoad Empowerment Zone (NEZ) when a"...munici�ality determines #hat the crea�ion
of f�e zone would pramote:
{'�} the creation of affordable housi�g, including manufactured housing, in the zone;
(2} an increase in economic development in the zone;
(3) an ir�crease in the qualify of sacial services, education, or pubiic safety provided �o
residents of the zone; or
(4) the rehabilitation of affardabie housing in the zone."
TF�e City, by adopting the followi�g incentives, will promota affor�able housing and
economic de�elopment in �he NEZ. NEZ incenfives wiil not be granted after the NEZ expires as
defined in the resofution designating the NEZ. For each NEZ, the City Cfluncil may ap�rove
additional terrns and incentives as permitt�d by Chapter 378 of #he Texas Lacal Government
Cade or by City Council resolution. However, any tax abatement awarded before the expira�ifln
af a NEZ shall carry its full term accarding to its tax abatement agreement appraved by fhe City
Council. . �
As mandafed by s�ate law, the property �ax abatemeni under fihis policy applies to the
owners of real proper�ty. Nothing in fihe palicy shal! be consfirued as an obligat`ron by fhe
City af Fori L�Vorth �io appro�e any iax abatement application.
Il. ���INlYIORlS
"A6ateme�nt" means the tUfl or partial exemption from City of Fort Worth ad valorem taxes on
eligible properties for � periad of up to 10 years and an amounf of up f� 100% of the incr�ase in
appraise� vaiue (as reflected an the certified tax rofl of fhe appropriate caunty appraisal district)
res�lting �ram improvements. Eligibie praperties must be focated in the NEZ.
`Base Value" is fhe value of the pra�erky, excludirtg land, as d�t�rmined by the Tarrant County
Appraisaf Disfrict, durirtg the year reF�abi�itatior� occurs.
"Building 5fandards Commission" is the commission created under 5ec. 7-77, ArtEcle EV.
Minimum Building Standards Code of the Fort Worth City Code. �
"Capital lnvestment" includes only real praperty improvements such as new facififi�s ancl
structures, site im�rov�ments, facili#y expansion, and facil�ty modernizatian. Capita! I�vestment
does NQT incltade [and acquisition costs andlor any existing improvements, or personal property
(such as machin�ry, equi�ment, and/or sup�lies and inv�ntory).
"City of Farf Worfh Tax A6afement P�Iicy Statement" m�ans the pa[icy adopted by City Gouncil
on February 29, 2000.
"Commercial/Industrial Developmenf Praject" [s a deve[o�ment project which propases to
construct or rehabili#ate commerciallindustrial facilities on property fhat is (or meeis the
requirements to be) zoned commercial, industrial ar mixed use as defir�ed by the City of For�
Worth Zoning Ordinance.
"Communify Facility Development Projecf" is a developmer�t project which proposes to construct
or rehabilitate community facilities on property that allows such use as defined by the City of
Fort Worth Zoning Ordinance.
"Eligfble Rehabrlrtafiorr"
Rehabilifation does NOT
andlor supplies).
includes only physical im�rovements to r�al property. Eligible
incl�de personal property {such as furnifure, appliances, equipment,
�Gross Floor Area" is measured by taking �he outside dimensions of the building at each fioo�
E�vel, except that portion of the basement used ort{y for utiiities or s#orage, and any areas within
tha building used for off-street parking.
"Minimum Building Sfandards Code" is Articfe !V of the Fort Worth Ciiy Cod� adop#ed pursuant
to Texas Local Gavernment Code, Chapters 54 and 214�.
"Minorrty Business Enterprise (NIBE)" and "Women Business Enterprise (WBE}" is a minoriiy or
woman owned �us�ness that �as received certification as either a cer�ified MBE or certi�ed
WBE by either the North Texas Regional Certifiication Agency {NTRCA) or the Texas
Depar�ment of Transpartation {TxDot), Highway Division.
"Mixed-Use Development Project" is a deve{opment project wf�ich pro�oses to constr�ct or
rehabilitate m�xed-use facilities in which residential uses constitute 20 perceni or more of the
tota! gross floor area, and office, eating and enfertainment, andlor retail sales and service us�s
constitute �iQ percent or mare af fhe tatal gross floor area and is on property fhat is (ar meefs
the requirements to be} zoned mixed-use as described by the City of Fort Worth Zoning
Ordinance.
"Mulfi-family Developmen# Project" is a de�elo�mant praject which praposes to construct or
rehal�ilitate multi-family residentiai living units on �roperty that is (or mee#s the requirements to
be) zoned multi-famify ar mixed use as defined by tF�e City of �o�t Warth Zoning Ordinance.
"Reinvestment Zone" is an area designated as such by the City of Fark Wo�h in accordance
with the Prop�rty Redevelopmer�t and Tax Abatemertf Act cadified in Chapter 312 of tha Texas
Tax C�de, or an area designated as an enterprise zone pursuant to the Texas Enferprise Zone
Act, codified in Chapter 23�3 af the Texas Government Gade.
IIL MUhIIG1PAL PROP���'Y YAX l��/���M�NTS
�. RESID�WTIAl. PROPERTI�S LOCAYED IN A N��: FU�� �.�ATEMEfVT FO� �
Y�.ARS
E
�. For residential property purchased before NEZ designation, a homeowner shall be
eligible to apply for a tax abatement by meeiEng the folfowing:
a. Property is owner-occupied and the primary residence of the homeowner priar to
the final N�Z designatian. Homeowner shall provide proof of ownership i�y a
warranty deed, a�Fidavit of heirs�ip, or a�robafed will, and shall show proflf of
primary rEsidenc� by f�omastead exemption; and
�. Homeawner must perforrr� Eligible Rehabilitation on ihe property after NEZ
designation equal to or in excess of 30% c�f the Base Value of the property; and
c. Property is nat in a tax-de[inquent stafus when t�e abatement application is
submitted.
2. For residential p�operiy purchased af�er NEZ designatron, a homeawner shall be
eligible to apply for a tax abatement by meeting the faffowing:
a. Property is newly constructed or reha�ilitated after the date of final NEZ
� designation; ancf
b. Property is owner-occ�pied and is the primary residence of #he homeawn�r.
Hameowner shall provide proaf of ownership by a warranfy cieed, affidavit af
heirship, or a probated will, and sF�all shaw proof of primary residence by
homestea� exemption; and
e. For rehabilitated pr•aperty, Eligi�le R�habiliiation costs on tF�e praperty shall be
equal to or i� excess of 30% of the Base Val�e of the proper#y. The seller or
owner shall pro�ide the Ciiy information to suppor� rehabilitation costs; and
d. Property is not ir� a tax-delinquent status when the abatement applicatian is
su6mittecf.; and
e. Property is in conformance witF� the City of Fark Worth Zoning Qrdinanc�. �
3. For in�esior owned single famify prap�rty, an investor shall be eligible fo apply for a
tax abat�m�nt by me�ting the following:
a. Proper�y is newly constructed or rehabilitated by the investor afiter NEZ
designation; and
b. Far rehabilitated property, Eligible Rehabiiitation cosfs o� the praperty shalf be
equal to ar in excess of 3�% af the Base Value of the praperty; and
c. Praperty is not in a ta�c-de[inquent status when the abatement applicatian is
submit#ed; and
d. Properiy is in conformance with fF�e Cify of Fort Worth Zoning Ordinance.
�. IV1U�iio�AHlll�Y D�VE�.OP�V�A�T PROJ�CiS LOC�TED IfV /� N��
1. Full Abatement for 5 years.
ln order to be eligible for a properly tax abatement, upon completion, a n�wEy
ca�structed ar reha�ilitated multi-family developmenf praject in a NEZ must satisfy
the f�!lorrving: -
Ai leasf twenty percent (20%) of the tofal units canstructed or rehabiiita�ed shall
be affardab{� (as defi�ed by the �. S. Department of Housing and Urban
Deveiopmer�t) ta persons with incomes at ar below eighty percenf {80%} of area
median income based an family size and s�ch units shall be set aside for
��rsons at or be�ow 80% of the median incame as defned by th� U.S.
Depar�ment of Housi�g and Urban Development. City Councif may waive or
reduc� the 20% affordability requiremant on a case-by-case basis; and
(a) For a mul#i-fam�ly de�elopment project constructed after NEZ designafion, the
project must provide at least fi�e (�) r�sidentiai living units OR have a
minimum Capital lr�vesfiment of $200,000; or
(b} For a rehabi�itation project, the properiy must be rehabifitated a#ter NEZ
designation. Eligible Rehabilitation cosfs on th� property shall b� at least
30% of �he Base Value of the property. Such Eligibie Rehabilitation casts
must corr�e from the re�abilitation of afi least five (5) residential living u�iis nr
a minimum Capital investment of $200,000.
2. 1%�100% Aba#ement of City Ad Va[arem taxes up ta 10 years
If an ap�licant applies for a tax abatement agreement wifh a term af more #han five
years, this section shall apply.
Abatements for multi-family develapmenf projects for up to 90 years are subject to
City Council approvaL The applicant may apply with the Hausing Department for
such abatement.
Years 1 throuqh � of the ia�c �ba�emenir Aareemeni
Multi-family pra�ects shall be eligib�e for 100% abatement o� City ad �aiorem taxes
for years one througl� five of the Tax Abatement Agreement upon the satisfaction of
the fiallowing:
Afi least twenfy percent (2Q%j af the totaf units constructed or rehabifitated shall be
affordabie �as defined by the U. S. Depa�iment af Housing and Urban Development}
t� persons with incomes a# ar �elow eigf�ty percen# (8Q%} af area median incame
�ased on family size and such units shall be set asi�e for persons at or befow 80% of
the median income as defined by the U.S. Departmeni of Housing and llrban
De�elaprnent. City Council may waive or reduce tfie 20% affordabili#y requiremenfi
on a case-by-case basis; and
a. For a multi-family development pro�ect constructed after NEZ designation, the
project must provide at least five (5) residential living units OR have a minim�m
Capital In�estment o# $200,000; or
b. For a rehabiiitation praject, the properEy musf be rehabilitatacf after NEZ
designation. Eligible Rehabiiitation cosfs an the properly shafl be at leasf 30% of
tha Base _Vafue of the prope�ty. Such Eligibfe Re�abilitation casts must com�
from th� rehabilitation of at least five (5) residential living units or a minim�m
Capital fnvestmenf af $200,OOQ,
Years 6 thrauph 10 of th� iax Aba�emenf Aqreement
Mulfi-family praj�cts shall be eligible for a 1-�OD% abaternent of City ad valor�rn
taxes for years six fF�roug�t t�n of the Tax Abatement Agreement upon the
satistaction of the fal�owing:
a. At least fwenty percent (20°/a) of tf�e tafal units constructed or rehabiiitated shall
be affardable (as definecE by fhe U. S. Departm�nt of Hausing and Urban
De�elopment) to persons with incomes at or below e�ghfy percent {8Q°/a} of area
�1
median incame bas�d on family size and such units shall be set aside for
�ersons at or 6elow 80°/a ofi the median income as defined by the U.S.
Department of Housing and Urban Development. City Council may waive or
reduce the 20% affordabifity requirement an a case-by�case �asis; and
1. For a mult9-family deveiopment projecfi constructed after NEZ designation, the
projeet must provide at least .five (5) residentia] living units OR have a
minimum Capital lnvestment of $200,000; or
2. For a rehabi[itation project, the property must be rehabilitaied af�er NEZ
designation. Eiigible Rehabifita#ion costs on the property shall be at least
30% of tF�e Base Value af the property. Such Eligible Rehabilitation costs
must come fram the rehabilitation of at least five (�) residential living units ar
a minimum Capita! lnvesiment of $200,000.
b. Ar�y ather terms as City Council of �he Gity of Fort Worth deems appropriate,
including, but not limifed to:
1. utiiization af Fort Wortf� campan9es far an agreed upan percentage of fh� total
costs for constructian contracts;
2. ufilization of certified minority and women owned business enterprises for an
agreed upon p�rcentage of the tatal casts for canstruction cantracts;
3. property inspection;
�. commit to hire an agreed upon percentage af Fort Worth residents
5, commit to• t�ire an agreed u�on percentage af Central CEiy residents
6. [ancEscaping; .
7. tenar�t selec#ion plans; and
8. managemenf plans.
C. COIUIfl��RCIAL, [N�US7�IAL �ND COIVi�ilUN1TY FAC[�ITl�S 9�V�LOP�4IIENi
PROJ�CiS �OCA`�E� I{� �1 N�Z
1. Full Abatemenf far 5 years.
ln order to be eligible fior a property fax abatemen#, a newly constructed or
rEhabilitated commercialli�dustrial and cammunity �acilities development praject in a
NEZ must satisfy th� fol[owing:
a. A commercial, industrial or a community facilities development project
� consfructed after N�Z designation must F�ave a minimum Capital Investment of
$7�,000; or
b. For a rehabilitatian project, it must be rehabilitated after NEZ desi�nation. Eligibie
Rehabilitation casts an the property shall be at I�ast 3�% of the Basa Value of
the property, or $75,000, whichever is greater.
2. 1%-100% Abatemenf of City Ad Valorem taxes up to 10 years
If an applicant appfies for a iax abatement ag'r��ment with a term of more tf�an fi�e
y�ars, t1�is sect�on snafl appEy.
Abafement agreemenfs for a Commereial, Ind�sfrial and Community F'acilities
D��efapment �rojects for up ta 90 years are subject to City Council approval. The
F
applicant may apply wi#h the Econornic and Cflmmunity Deve�apment Departmenfi for
such abaiement,
Years 1 throuc�h � of �he �ax Abafemen# Aareemeni
Comm�rcial, Indusfrial and Community Facifities Development projects shall be
eligibie for 100°/n abatement af City ad vaiorem taxes for the first five years of the
Tax Abatement Agreement upor� the satisfaction of the fallowing: ,
a. A cammercial, industrial or a cammunity facilities development projecf
constructed after NEZ designation must have a minimum Capital ln�estment nf
$75,000; ar
b. For a rehabilitation project, it must be rehabilitated after NEZ desig�ation. Eligible
Rehabilitation costs or� ihe properfy shall be at least 30% o� the Base Va�ue of
the property, or $75,004, whichever is greater.
Y�ars 6 thro�ah 10 of the Tax Abatemeni Aareement
Cammercial, Industrial and Cnmmunity Facilities Develapment projects shafl be
eligible for 1°/o-100°/fl abatement of City ad �alorem taxes for years six thro�gh ten of
the Tax Abatement Agreement upon the satisfaction of the foAowing:
a. A commercial, industrial or a community facilities developme�t project
consfructed after NEZ �esignafion must have a rninimum Capifial Investment of
$75,000 and must meet the requirements of su#�section (c) befow ; or
b. �'or a rehabilitation project, it musi be rehabiiitated after NEZ c�esignafion. Eligibl�
Rehabilitation casts on the property s�al� be at leasf 3Q% of the Base Value af
the property, or $75,000, whichever is greater and meet fhe req�irerr�ents of
subsection {c) below.
c. Any other terms as City Councii of the City of Fort Worth d�ems apPropriafe,
incltading, but not limited ta:
1. utilizafiion of Fort Worth companies for an agreed upon perceniage of the totaf
casts for construction contracts;
2. utilization ofi cer�ified minority and women owned b�siness enterprises �or an
agreed upon percentage of the tofai costs for canstructian eontracts;
3. cammit to hire an agreed up�n percentage af Fort Warth residenfs;
4. commit to hir� an agreed upon percenta�e af Cenfral City residents; and
5. landscaping. �
D, Ni1XED�US� 9EV����IV��iV f PROJ�CTS LOCATED IW A idFZ
1. F'ull Abafemenf tor 5 years.
[� order to be efigib�e for a property tax abatem�nt, upon completion, a newly
canstructad or rehabilitated mixed-use develapment project in a NEZ must satisfy f[��
following:
a. Residenfiial uses in the project constitute 20 percent or more of tf�e total Gross
Floor Area of the project; and
b. Office, eating and �ntertainment, anc�lor retaif sales and service uses in the
proJect cons#itute 10 percent c�r more of tF�e tatal Gross Floor Area of the project;
and
{1) A mixed-use de�elopmer�t project constr�tcted af�er NEZ designation must
have a minimum Capital Investment af $200,�00; or
(2) �or a rehab9litatian project, it must be reha�ilitafied. after NEZ designation.
Eligible Rehabilitation costs on the prop�rty sY�all be .at least 3Q% of the Base
Value of the p�ope�ty, or $200,000, whichever is greater.
2. �%-100°!� Abaterr�ent o# City Ad Valorem taxes up to 10 years -
If an applicant applies for a tax a�atement agreement with a ferm af more than five
years, this section shall apply.
Abatemenfs agreements far a Mixed Use Development prajeets for up to 10 years
are s�bject to Ciiy Council appraval. The appficant may apply with the Economic and
Community Develo�menf Deparimertt for such abafement.
Years '! fihrouqh � of the iax Al�afiernenf �dqreement
Mixed Use De�elopmen# projec#s shall be eiigible far 100% abafement of Cify ad
valarem taxes for the first five years o� the Tax Abatement Agreement upon the
satisfaction of the fallow9ng:
a. Residenfial uses in the project constit�te 20 p�rcent ar more of the toial Grass
Floor Ar�a ofi the project; and
b. Office, eating and enfertainment, andlor retail sales and service uses in the
project constitute 10 percent or more of the total Gross Ffoor Area of the project;
an� -
c. A n�w mixed-use develapment �ro}ect constructed afiter NEZ designati�� m�st
have a rtiinimum Capital lnvestrrment af $200,fl0a; or far a rehabifitation project, it
mus� be rehabilifated after NEZ designation. Eligible Rehabifitation costs on the
pro�erty sF�afl �� at least 30% of #he Base Value af the proper�y, or $200,OOQ,
whichever is greafer.
Years 6 fihrauqh 10 af �Ehe �ax Abafement �►areemeni
Mixed Ll�e De�eiopment projects shall be �Ggible far 1-10�% abateme�t of City ad
valorem taxes for years six through ien �f the Tax Aba#ement Agreement upon fhe
satisfaction of the tollawing:
a ResidenfiaE uses in the pro�ect cortstitute 20 p�rcenf or more of the total Gross
FEoor Area af t�e prajecfi; and
b. Office, eafing and entertainment, andlor retail sales and s�rvice uses in the
project constitute 10 percent or more of the #ota! Gr�ss Floor Area o� the project;
c. A new mixe�-use de�elopm�nt project constructed af�er NEZ designation must
have a minimum Capital Investment of $200,000; or for a ref�abilitation project, it
mus# be rehabilitated after NEZ designation. Eligible Rehabilifat�on costs on the
properiy shall be at leas# 30% of fF�e Base Vaiue of the proper�y, or $2p0,00Q,
whiehe�er is greater; and �
d. Any other terms as City Council of the City af Far� Worth deems appro�riate,
including, but �ot limited to:
1. utilization of �ort Worth companies for an agreed upon percentage of fhe
total cnsts for construction contracts;
7
2. utilization of certified minority ar�d women owned business enterprises for
an agreed upan percentage of t�e total costs for construction contracts;
3. property ir�spection;
4. commit ta hire an agreed upon percentage of Fort Worth residents
5. commit to hire an agreed upon percentage of Central City residents
6. landscaping; .
7. tenant selection plens; and
8, management plans.
�. AS/�i�MENT GUI���iN�5
1, If a NEZ is located in a Tax Increment �'inancing �istriet, City Council wiEl determine
on a case-by-case basis if t�e tax abatement incentives in Section li� wi[I be offered
to eligi�le projects. Eligible projects must meet a[I e�igEbility r�quirements specified in
Section lI1. '
2. In order to be eligibie to appfy for a tax abaternent, the property ownerlde�eloper
must:
a. Not be definquent in �aying property taxes for arty property awned by the
ownerldevelo�er ; and
b. Not E�ave any City af �ort Wort� liens fiifed against any property owned by fhe
applicanf praperty own�rlde�elaper. "Liens" include, but are nat fimited tfl, weed
liens, demolition liens, board-uplopen s#ructure liens and pa�ing liens.
3. Propertaes under a contract for deed are not eiigible for tax abatemenf.
4. Once a NEZ property owner of a rasidential property (including mul#i-family} in the
NEZ saiisffes the criteria set forth ir� Sectians iII.A, E.1. and E.2. and applies for an
abatement, a property owner must enter into a tax abatement agreemer�t wit� the
City of Fort UVarth. T�e tax abatement agreement shall a�#amatically terminate if fhe
property subject to the tax abatement agreement is in �iolation of th� City, af Fo�t
WortY�'s Minimum Building Standards Code and the owr�er is convicted of such
�iolation.
5. A tax abatement granted under the crif�ria set fortl� in Section lll. can only �e
granted once far a property in a NEZ for a maximum term of as sp�cified in the
agreement. If a properiy on which taac is being abated is sold, the City wi�l assign fF�e
tax abafiement agreement for the remaining term �nce the new awner sUbmits an
appiication.
fi. A pro�erty ownerldev�iop�r of a multifamily de�elopmer�t, commercial, industrial,
cammunity faci[ities and mixed-use de�eiopment prajsct in the NEZ wFto desires a
tax abatement �nder Sectians III.B, C or D mUsf:
a. 5atisty the criteria set far�h in 5ections III.B, C nr D, as app�icable, and Sections
III.E.1 �.2; and E3. and
b. File an application with the Housing Department ar the �conomic and
Comm�nity Development Department, as applicable, and
0
c. The property awner must enter infa a tax abatement agr�emenf wi#h the City af
Fort War�h. In ad�ition to the other terms of agreement, the fax abatement
agreement shafl pravide t�at fhe agr�ement shall au#omatically terminate if the
owner receives an� canvictian of a violatior� of tf�e City of Fort Warth's Minimum
Building Standards Code regarding the property subject to i�e abatement
agreemenf d�ring the ferm of t�e tax abat�ment agreement; and
d. If a praperty in the NE� on which tax is being ab�ted is soid, the new awner
may enter inta a tax a�atement agreement on the pro�er�y for the remaining
term.
�. A�PLfCAT10N �'E�
The applicatian fee for residential fax abatements gaverned under Section III.A is
$25.
2. The applicatio� fee for mul#i-family, cammercial, indusfrial, commuriity facifities and
mixed�use developmertt projecfs go�err�ed under Sections f II.B, C.1 and D.1, is one�
half of ane percent {4.5°/a) of the proposed project's Capital Investment, not to
exceed $1,000, The appiicaiion fee will be refunded upo� issuanca of certifiicate of
f[nal occupancy and once the praperly owner enters into a tax abatement agr�ement
with the City. Otherwise, the AppGca#ion Fee shall nat be credited or ref.unded ta any
par[y far any reason.
iV. �'�� lMAIVERS
/�. �LIG��LE R�Cl4�IEWTSIPROP�RTf�S
1. fn order to be eligible to apply for fee waivers, the praperty ownerldeveloper must
a. Not be delinquent in �aying praperty taxes fior any �roperEy owned by t�e
owr�erldeveloper or applicant; ar�d
b. Not ha�e any City liens filed againsf any �roperty owned �y fh� appi�cant property
ownerlde�eloper, including but not lim�ted ta, weed liens, demoiition fiens, board�
up/op�n strucfiure liens and paving liens.
2. Properties under a contract for deed are nat eligibl� far developmenf fee waivers.
3, In order for Devefopment Fees andbr Impact Fees to be waived for n�vv canstruction
or rehabilitatian projects I�cated i� the NEZ, a property awner musf submit an
application to the City.
�ipproval of t�7e apqlication and waiver of th� fees shall' not Fae deemed �o be
approval of an� aspect of the proiecf, �efore consfiruction, ihe applicani mus#
ensure fihat the proiect is locafied in ihe correct �onina district.
B. ��1/ELOPIV➢EiVT ���5
Once the Applicafion for NE� Incenti�as �as been approved by the Cify, fiF�e foflowing
fees far senrices pertarmed by the Cify of Fort Worth for pTajeets in the N�Z are waived
for new construction projec#s or re�abilitafion projects that expend at least 30% of fhe
Base Value of the property on Eligible ReF�abilitatian costs:
0
9. All building permit reiated fe�s (including Plans Review and
2. Plat app�ication #ee (including concEpt plan, preliminary E
replat)
3. Baard of Adjustment application fee
4. Demofifian fee
�. Struc�ure ma�ing fee
6. Community Facilities Agreement �CFA) application tee
7. Zoning application fee
8. Street and utiiity easement �acation application fee
C.
�
Inspections)
lat, final plat, shor� form
Other developmenf related fees not specified above will be considered for approval by
City CounciE an a case�by-case bas�s. �
i��aeY ���
1. Single family and multi-family residentiaf d�velopm�nt proj�cts in the NEZ.
Autamatic 10D% waiver af water and wasfewater impact fees will be applied.
2. Commerciai, industrial, mixed-use, or commur�ity facility development projects in tne
N�Z.
a. Autamatic 140% waiver af wafer and wastewater impact fees up to $55,000 or
equivalent to twa 6-�nch meters for each commercial, industrial, mixed-use or
community facility development project.
b. If the project requests an im}�act fee waiver exceecEing $5�,000 or requesting a
wai�er for larger and/or more than two 6-inch meter, then City Council appro�af is
requir�d_ Ap�licanf may request the additiona! amaunt of impact fee waiver
thraugh the Housing Departmenf.
R�L��oS� O�' C�T1( LIEAlS
Th� fo[lowing City liens may be released for e[igible properties or projects in a NEZ:
�. VIIEED I�I�NS
The following are eligil�le to a�}aly for release of weed liens:
1. Singie unit owners perForming re�abilitation on their properties.
2. Bui�ders or developers consiructing new homes on vacan# lots.
3. �Owners perfo�'ming rehabiiitation on multi-fami�y, commerciaf, industrial, mixed-use,
or community facifity properties. .
4. Developers construcfing new multi-family, commercial, industria�, mixed-use or
community faciliiy devebpment projec#s.
B. �)�MOLI7'lON LIENS
10
Builders or developers developing or rehabi�itating a property are eligible ta appiy for
release of cfemolition liet�s far u� to $30,000. Re�ease ofi demoli��on liens in excess at
$30,000 is subject to City Council approval.
C. �OA�iD�UP10�'�N SiRUCYURE LI�NS
The following ar� eligible to apply for release flf board-uplopen structure liens:
1. Single unit owners performing reF�abil�taiion an their proper�ies.
2. � Builders or develop�rs constructir�g new single family homes an vacant lats.
3. Own�rs performing rehabilitation an multi-family, commercial, industriaf, mixed-us�,
or community facility properties.
4. Developers canstructing muiti�family, comm�rcial, industrial, mixed-use, or
community facifity projects.
�. P�V[NC LI�NS
The following are eligibfe to apply for refease of pa�ing liens:
1. 5ingle unit o.wners pertorming re�abilitation on their properties.
2. Builders or d�vefopers constructing new hames ar� vacant Iots.
3. Owners performing rehabilitation on multi-family, commercial, industrial, m�xed-use,
or community facility properkies.
4. De�elopers constructing mulfi-family, commercial, �ndustrial, mix�d-use, ar
communify faci�fty projects.
�. ��ICIBLE RECIPI�NTSI�R���RTi�S
1. In order to be efigible �o apply for release of City lierts, the proper�y owner/developer�
a. musf r�nf be delinquent in paying property taxes for ar�y properly owned by
the ownerlde�eloper _
, b. must nof have been s[�bject to a Building 5tandards Commission`s Order of
Demolition where the property was demofished within fhe last fi�e {�) years; and
c. must not ha�e any City af �nrt Worth liens filed against any other prnperty awned
�y the appficant property awnerldevelopar. "Liens" incl�des, but is t�ot limited to,
weed liens, demolition liens, board-uplopen struc#ure liens and paving liens.
2. Proper�ies under a contract �or deed are not efigibfe for refease of City fier�s.
l�I. PROC�DUR/�L SY�PS
A. A1�PLICAiIOf� SU��l11S�lOiV
The applicanf for NEZ incentives under Sections III.A, B, C. D., IV, and V�must
compiete and submit a City of Fort Worth "App[icaiion for N�Z Incentives" and pay
the appropriate applicatiort fee ta the Housing Department or the Economic and
Corrtmunity C7eve�apment Department, as appiicabfe.
11
2. The app[ican# for incentives un�er Sections IILC.2 and D.2 must also complete and
submit a City of Fort Worfih "Appiicatio� for Tax Abatemen#" and pay f�te approprEate
application fee ta th� Econ�mic and Community De�elopmenf Department. The
app�ication fee, re�iew, evalua#ion and approval wi[I be governed by City of For#
Warth Tax Abatement Policy Statement for Qua�ifying Develapment Projects.
B, G�RiI�ICp►iIONS �OR APPLICA�tONS UN��R S�CYIQId� f11./�, B, C.'I, D.1, 11l,
AN � V
1. The Hausing Depar�ment wiil review th� application for accuracy and
camplefeness. Once complete, Housing Department will certify e[igibility of the
app�icafion based on the criteria set forth in Section III. A, B, C.9, D.1, IV, and V af
this policy, as appiicable. Once an ap�licatian is certified, the Hausing Department
will inform appropriate departments administering fhe incen�ives a�out #�e certified
application. An orien�afion meeting with City departments and the appficant may be
scheduled. Ti�e departments include: �
a, Housing Department: prflperty tax abatement for resid�ntial properties and multi-
family development projects, refease of City liens.
b. Economic ar�d Community Developmer�i Departmeni: property tax abatement for
commercial,
intfustrial, community facilities ar mixed-use development prajects.
c. Development De}�artment: devefo�ment fiee waivers.
d. Water Department: impact fee waivers.
e. other appropriate departments, if applicable.
2. Ohce Developm�nf Departrn�nt, Water Department, Economic and Cvmmunity
De�elopment Department, artdlor other appropriate department recei�e a certified
application fram the Hausing �epartment, each departmentloffice sF�all fill out a
"Verification of NEZ fncentives for Certified NEZ lnceniives Applicatia�" and re#urn i�
to the Housing Depar�ment for record kee�ing and tracking.
C. APP�.ICATIOfV R�VI�W AN� �V,4�lJ�►'fIOfV FOR APPl�ICAilO�'S
1. Praperty Tax Abatem�nt for Resideniial Praperties and Multi-family Developmer�t
Projects
a. For a campleted and certified ap�licatian fiar no more fhan five years af tax
abatemeRt, wi�h Cou�ci[ approval, t�e Cify Manager shal[ execute a tax
abatement agreement with the appficant.
b.. For a campleted and certified multi-�amiiy deveiopment project application fo�'
more than five years of tax abatement:
(1) The Ho�sing �epartment will evaivate a campleted and cerfE�ed applicatian
based on:
(a) The project's increas� in the value of the tax base.
(b) Costs ta fhe City (such as infrastructure participation, etc.}.
(c) Percent of construcfion cor�tracfs committed to:
(i) For� Worth based firms, and
(ii) Min�rity and Wamen Owned Business �nterprises (M/WB�s).
(d) Other items which may be negotiated by the City and the appEicant.
12
(2} Considerafion by CQuncil Comrnittee.
Based upon the outcome of t�e evaluatifln, Housing Department may present
the applicati�n ta the City Councii's Econom[c DeveEapment Committee.
Should the Housing Departmenf present the application ta the Ecanomic
Development Committee, the Commi�tee will consider fhe application at an
open meeting. The Committee may:
(a) Approve the application. 5taff will then incorporate the application inio a
tax abatement agreement which wil� be sent ta the City Co�Rcil with the
Committe�'s recommendation ta apprave the agreement; ar
{b) Request modifications to tFie application. Hausing Department sfaff wil!
discuss the suggesied modifcations with the a�plicant and fhen, if fh�
requested modifica#9ons ar� made, resubmit the modified applicafinn tn
ihe Committee for consideration; ar
(c) Deny fhe appficatian. The ap�licani may appeal the Cammittee's finding
by req�esting the City Councif to: (a) disr�gard the Committee's finding
and (b) instruct cify s#aff to incorporate fhe applicatEon inta a tax
abatement agreement fior future consideration by the City Council.
(3) Considerakion by the Gity Couneii
Th� City Council retains sole authority to ap�ro�e or deny any fax abafement
agreement ancf is under no obligation to approve any #ax abatement
application ar tax abafemer�t agreement. The City of �ort Worth is under na
obligatian to provide tax abatEment in ar�y amount or valu� to any appficant.
c. EfFecti�e Date for Approved Agreements
All tax abafer�-��nts approv�d by the City Cauncil will become efFective on
January 1 af fhe year following #he year in which a Certificate of Occupancy {GO}
is issued for the qualifying developmenf project (unless otherwise specified in the
tax abatemer�t agr�ement). Unl�ss oth�rwise specified in the agreement, taxes
le�ied cturing the construction of tite projeet shafl �e due and payable.
2. Property Tax Abatement for Commercial, Indusfrial, Community Facilities, and
Mixed-Use Development Prajects
a. For a completed and certified app[ication for no more tha� f�ve years af tax
abatement, with Council appr4val, the City Manager shall execuie a tax
abatement agreemer�t with the applicant.
b. For a completed and certifiied application for more than fi�e years of fax
abatement:
(1) The Ecanomic and Community De�elopment ❑epartment wiil evaluate a
campleted ar�d certified applicatian based on:
(a} Th� praject's increase in the �alue of fF�e tax base.
(b} Costs to the City (such as infrastructure participafian, etc.).
(c) Percen# of construction contracts committed to:
(i) Fort Worth based firms, and
(ii} Mi�ority and Women owned Business Enterprises (MIWBEs).
{d} Other items which may be negotiated �y the City and #he applicant.
�3
(2) Consideration by Cou�eil Commit�ee �
Based upon the oufcame of the evaluation, the Economic and Cammunity
�evelopment D�par�ment may present the application ta the City Council's
Economie DeveEoprnent Committee. Should the Economic and Gommunity
Devefapment Department present t�e a�p[ication to the Economic
Development Committ�e, tf�e Committee will considec' the application at an
open meeting. The Committee may:
(a) Apprave th� application. Staff wiU ther� incarporate the applicatian inta a
tax a�atement agreemen� whicF� wi[I �e sent to the City Council with the
Committee's recommenclation to apprave the agreement; or
(b) R�quest modificatians fa the applicatiort. Ecanomic and Community
Development Department staff will discuss i�e suggested modificat�ons
with the applicant and then, if the requested modifications are made,
resubmit t�e modified application to the Committee for car�sideration; or
(c} Deny the applicafion. The applicant may appeal the Cammittee's finciing
by requesting the City Caunci! ta: {a) disregard tne Committee's frnding
and (b) ins�ruct city sfaff to incorporate the applica�ion into a tax
abafement agreement far fufure ctinsideration by fhe City Council.
(3} Consideration by the Ciiy Counci!
The City Council reiains sale autharity ta approve or deny any fax abatement
agre�ment and is under no � obligafian to a�aprove any tax abat�ment
applicafion or tax abafernent agreement. The City of For� Worih is under no
abligatian to pravide tax abatement in any amaunt or va�ue to any appiicant.
c. Effective Date for Approved Agreemenfs
All tax abatements approved by the City Council wiil become effecti�e on
January 1 of the year following the year in w�icf� a C�rtificate Qf Occupancy (CO)
is issued for tihe qualifying development project (unless otherwise specified in the
tax abatement agreement). �nless ofherwise specified in the agreement, taxes
levied during the construction of fhe project shall be due and payable.
3. �e�elopmer�t Fas Waivers
a. For cerfiified applications of de�elopment fee wa[vers that do not require Ca�ncil
approval, t}�� Develapment Depar�ment wi[I review tf�e cerkified applicanf's
application and grant appropriate incenti�es.
b. For certified applicatians of d��elopment fiee waiv�rs that require Council
approva�, City staff wiil review the ce�tified applicant's ap{�licatian and make
appropria#e recommendat�ons to the City Council.
�4. Impact Fee Wai�er
a. For certifed ap�iicaiions of impact fee waivers that da no# require Council
approval, the Wafer Department will revi�w the certified appiicant's application
and grant appropriate incentirres.
14
b. For certified a�plications af impact f�� waivers fhat require Council appro�al, the
Water Department will review the certified applicant's application and make
appra�riafe recammendations to the City Cvuncil.
5. Release of City Liens
�or certified applications of releas� o� City liens, tF�� Housing Departmenf will release
the appropriate liens.
VIl. OiH�� RUL�S P�F�iAIR�iN� TO PROP�RTY iAX �►�ATEfw�PlY
A. ��CAPTURF
ff tne terms of the tax abaiem�nt agreement are nof inet, th� Cify Council has the right t�
cance] ar amend the abatement agreement. In the event of cancellation, the reca�ture of
abated faxes shall �e limited to the year(s) in which fihe defaul# occurred ar continued.
�. �1[VSP�CTIOfd Af�D I�II�APICIA� V�fil�IC,4ilOf� FO�i fNU�.'iI��ANiI�Y, COMMI�RCIALI
�fV�US�RIAL, CQMMUMITY F�AGILI7'[�S �►ND M[XED�USE �EVELQPNi�M�
PFiOJ �C�'S
The terms of the agreemer�t shall inc��de the City of Fort Worth's right to: {�} review and
verify the applfcanf's financial statements in each year during tF�� iife of the agreement
prior to granting a fax abatement in any given year, {2) conduct an on site inspection of
the project in-each year during the life of the abatement �o verify compliance with the
ter�s af the tax abatement agreement,
C. �VALUAY[OI� �OR hfl[JLTI-FAIVifLY, COMMFRC[AL! IA1DlJ5TR[AL, COMiwUIdIYY
�A►CI�Iii�S �►IVD i1111X�9nU5� ��V��O�M�IV� �ROJ�C�S
Upon. compleiion of construction of the facilities, the City snall no less than annua[ly
evaluate each project r�cei�ing abatement to insure campliance with the terms of the
agreemenf. Any incidenfs ofi non-comp[iance will be reported tn the City Co�ancil.
On or before �'ebruary 1st of every year during the li% cr� fhe agreemen�, any
individual ar entity rece'rving a ta�c al�atemen� �'rom �he City of �orfi Wor�h shal[
provide informafiion and doc�mer�tatiar� which details t1�e property owner's
compliance with fhe ��rms of �he eespec#ive agreemen� and shal[ certify tha� the
owner is in campfiance wiih each appiicable ferm af the� agreemeni. �ai�ure to
repor� this information and �o pro�ide the req�ired cerfiificafion by �he above
deadline s�alC resuli in cancella#ion of agreement and arry �axe�s abated in the
prior year E�eing due and �ayable.
D. �FF�CT OF SALE, AS51GN1Vi]�NT OR �.I�AS� OF PROP�RTY
If a property in the NEZ on which tax is being abated is solcE, the new owner may enter
into a tax abatemenf agr�ement on the proper�y tor the remaining term. Any sale,
assignmenf or lease of the property w�icF� is not permitted in tne tax abatement
agreement results in cancellafion of tl�e agreement and recapture of any faxes abated
after fhe date on which an unspecified assignment occurred.
15
vii�. �'�H�� INCEPITIVES
A. Plan rev�ews of proposed develapment projects in tt�e NEZ will be expedited by the
Deve3opment Department.
�. The Cify Counci! may add the following ineentives to a NEZ in the Reso�ufion adopting
the NEZ:
1. Municipal sales iax refuncf
2. Hamebuyers assistance
3. Gap financing
�. Land assembly
5. Car��eyance of tax foreclosure prape�ties
6. Infrastructure improvements
7. Support for Low Income Housing rtax Gredit (LIHTC) applicat�ons
8. Land use incentiv�s and zoninglbuilding code exemptions, e.g., mixed-use, density
bonus, parking exemption
9. Tax Incr�mertt Financing (TIF)
90. Public Im�rovement District (PID)
11. Tax-exempt bond financing
12. New Model Blocks
13. Lnan guarantees
14. Equity investments
T 5. O�her incer�fives that will effectuafe the intent and purposes of NEZ.
16
Exhibit B
3108 Eastcrest Court Lot 8, �locf� 1 Eastcrest Ad�ition
Exhibit C
Project Description
Single Famify R�sid�nce
90% Bric�C Venee�
1500-1900 square feet
3 Bedrooms/2 Baths
Two car garages
Arched Windows at Front of House
�ront Yard Landscaped
Microwave with built-in V�nt-A�Hood
Wood Burning Fire Place
Built-in Security System
Comput�r Area witn CPU & Printer with a dedicated telephone line
Vaulted Ceilir�g in Master Bedroom and �,i�ing Roam
French Doors
Separate Tub/5hower in Master Bathroom
Garden Tub in Mater Bathraom
4 �
FQRT �ORTH �
�
�X�� �ti� ��
Applicatian No. �� � � } � i ti9
CTTY UF FORT W4RTH
NEZ�HB4RHQOD EN.�PO'V�ERM�NT Z4N� �Z} PROGRAM
PR.OJECT CERTIFZCATI4N .A.FPLTCAT�ON .
FURNI B F�It �1'�TVESTOR OWNERS (SIri1GLE FAMiL�' ONL�'}
L APPLICATIQN CHECK LIST
,Please submait the. following documenfa.t�an. Witl� each pxoperty requesi.ad:
� A eompletecl`�ppT7ca�i��;fo�rii� s�: "��,�;E;`��,-� -
�.•; .�,-[�-: ...:; A list af all�.pz�pertie�Cawr�ed,by i�e applicant in �'ort Worth �
� Application fee of $�S.'t?0 �for tax abatenri�nt applications onry) •
❑ Proof of o�ersh.ip, such as a warranty deed, affzdavit of heirship, dr a probated will OR
evidez�ce of sita�contro�, sueh�as option to huy � - �
❑ � Title absiract�of i�e�pxoperty (�aptional}- ; . � � '
Fox Rehabi�itatiian I'i�oiects Onlv: � �
:❑ �or a project in the planning stage, please submit a completed s�t af Rahabilitation , "
.� •-�Remodel'1 Plan and a last of eli�ib�e r.ehab7liiatio�i.�.�sts'�.•(�c�r a��Iicaii�ns n� f� ��•
�batemenfs a�d deveiopment fee vvaxvers for rehab projects oz�y)
❑ Oncs a project is completed, please sub�it proo� o��the cligible rehabzlita#ion costs* such
as ir�vaices, con�racts, or receipts. (�ox ap�licaf�ons of tax abatements o�Iy) �
.�3 .� �
"` Elzgible relzabiIitatir�n i�acludes on�y physical improvemen.ts to real propert�. It does lY�T inelude persanal
pzop�riy such as fur�iturc, app�Zances, equipment, andlor su,pplzes. Tota.). elib hIe rehabiiiiation costs s]zall equal
to or exeead 3Q°lo of thc Tarcant Conn.ty Apprazsal Distr�ct ('Z'.AD). apprazsed valua of �he siructure during the
� year rehabilita.tion occurs. -
��� n. — ApP�cant 1 AG�NT Il'�F�RM�TT�I'� — -• — — — — — — ! 1— _ �
1. .A.p�lica�#; � • Z. Cax1tact �ersan;
. �� ���� l �__F_1A�����ap,�g�-r�N _ � �l��t�fl' ��'�
3. � Address: .
4. Pho�e no..,
6. Lmazl:
i. Agent (if �nY)
S: Address:
9. Pho�ae no.:
1I. �mai�:
� � �� 1�Z .
Street ity. Sta#e_ Zi� �
,Rf� � �37/-��°i� ... _ 5. Fax T+Io.: �Ii�-�'71 �3'.?��,. -- -
����� ����.����-�� ��-'x: vs . .
Street
„ ,
City Sfate Zip
10. Fa� No.: �
d
� If you need fnz�her in�'ormatio� or ctarifzcat�a�., please cantact C�un-� Lu. at (817) $'�I-73SI. oz _.
Bea Cura at (S�'� 871-8036. � '
�
a ....
�
�
e
�ORT�ORTH . �
III PROPERTY ELIGIBILITY i —� — —�-- — • —
1. P�ease list down tb.e addresses and legal descx�ip�aox�s Qf the prnperty whare you are app�ying
for I'�EZ incentives anc€ o�her proper�ies ynu own in Fort Warth. Attac� meies and baunds
desczip�ian if na address or legal descripfion is �vai�able.
Table 1 Propert,y Ownexshfp
+ Address 7ip f ,�,egaI Descxiption. �
(Praject Location) �
. � � - - �. - � -�� ��� - � �- I
� � - � - I� _ � -- ` _ . I. - �-I I
I : I I-. I
- - 1
� _ � . _-. �- -. 1 I (
(P[ease attach additianal sheets of paper as needed.} � � •
� � 2. For -e�ich pro�erties listed in, T`abl�e• 1,•please ch•eck ihe boxes below to xncIi�a#e if:
� there are ta�ces due; or jl� � " .
o there are Ci�,y liens; or �(„/ � .
� you have bee� subj�ect �o a Building Standarc�s Corlamission's Order of Deinolition vvhere the
properiy was demQlished within the last five years. ��
Tali�e � Prpperty Taxes and Cit,y Liens
. , Address ' Propexty + - - - �ty Liens an Property - -
, , : ° ,__?, �. ., � �-.: �: _ T�.�es �� �-=Weed B�a�r�-uplOpen :; ..DemoIiiion• � , P$'viug .. Or.der uf :
: _�'"` ... � `-. ` �` .. •:��• _ -:: "Due �- � � �iens � ��Stucture r,iens � � Liens -� :� Lie�s Demolition.�
-- - - -- - ❑ � � � ❑ � ❑ ❑ 0 ' �
�:X •-.x, �iu ��r•-`. -' . . � ' `�.+�"�'�"' ���'�: .,�.=, � �s�a ' - t'*^''�� : JI_ —❑ —� ❑—
- �:�' �-�7 ..�� � . : jr ]
�. *•^ . . _ I. _ _ .�' �'+ f L..f,— — � , �, ' I � I � �
� :�
. ...., . :I !
. I � � �„ � -V� — I � � I � �
� j I I
� , � -- 1 � -- � -- � I � � �
1 . -,- . � —� � — ❑ — � , — ., � -❑ - — ` ❑ — ❑ — .
� „ , 1 �
I � � ,�.��— ��..: S ��k4 � �—` � � �--❑ - �
� ' ❑ f { ❑ s � - ' ❑ , �I�� V ❑ 1 ❑ ❑
� 1 �
_ � I
.(Please atEach additional sheets of paper as needed.} �
���� � � . � .
�fJ , � - - , ..-
._ . �a�° .� ������� ,��� � �,.�,��I
•t .
3. Do you own ather properties under ofiher �amea? ❑ Yes,�To �
� If Yes, plsas� specify . �
4. Does the proposed develnpmen�t confarm �vifh City of �'art i�4'orth Zaning? �[] '�''es ❑ Na
-.. .�. 5. Is�fhis prop�rty under a contract for c�eed? [] Yes �Nfl
Code Subdivision � Lot No. � Block No. I
�
z
.. ,
~�,.
. a �ORT V�fJ�TH
6. Has the constrtyction on the praperty been comp�eted or is it in the plan�ing stage? VLrhat
type oi constr�pction? : �
❑ Constr�.tctio�a Co�pieted I�1 Ua�der Cons�ction �In �Iannin� Sta�e
❑ New Construci�on [] Rehab ❑ New Canstxciction�] T�ehab �Neav Const�ctian [] Rehab
7. Zf the consiruction an the properiy has bcen coznpl�ted when ihis app�ication is subm�itted,
vs�b:en �vas the work done?
S. - Zf it is a rehab praperiy, does {or wil�) the rehab�litataon warl�* dane a�► ihe propez-#y equal
to af least 3i?°lo of the Taxxant Coun�fy Appraisal Disirict {TAD) assessed �value of the
structtu�e dwring the year rehahilitation (remodeled) occurred? ❑ Yes ❑ No
�`Onty pbysical in-�provements to real property is eligib�e, DiD N4T include �exsonal praperty
such as furniture, appliances, equipznent� 321CUOx Si1�7�7IIE5,
�. K.� Il�TCEP+TTIVES . _ — _ � —• — — ;� .. . , .. , . . , � r .
_ Y�•^1..'V�ha�°�ucen�ives are you aPP�3'�g far7; �.• . .
f� IkC�znieip�ai Propertv Tag Abatemenis •`� �' "
Dev�lopnczent Fee Waivers � � �
� 1�11 bui�ding permit related �fees (i�cl�ding Plans Revievcr arid Xnspectionsj �
� How much is you.r total dev�Io�Zm�nt costs? $ j� ���.,,�� (� .
: � Ho�v much is th� tatal squa-re footage af your proj ect? �� squa�e feet
�• �, Plat application fee {in�clu�g coricept plan, prelzminary pla�, fina� plat, shori forzn�r�plat)
� Board of Adju,stmment applica#ion �ee
Q Demolit�an fee
3
tl.. ❑ CutC'l1C'f,lll� iIlOV1I1� ��E ,
.. . � �'omrnuna.ty Faci.Zities: �greement,{CFA) agplicafiion �ee�.. . .. v . r _ -. �. .. �
. - � � . -� ' � , - . . : ' � �
�oning ap�lica�tian fe�-
�
. , � Street an.d utility easem:ent
�znnact F'�e Waivers .
�. In-i�act fee waiver � j
, Me�er �ize ,3�� How rnany m�texs? ��y . �
: Reiease of Citv Liens
❑ V'i�'eed liens
� ❑ � Board aplopen structure liens, �
; . , ; [� D�rnolition liezzs � �
; � ❑ Paving �iens— -- -- — — — — � _ —, — --- — —
�
3
�
�
I
FQRT �ORT�
�
V. ACKNQWLEDGMENT� — —' — ' _ — —• — _.. _ _ _
I hare�y certify that t�� ���a-�a� provided is i�ue and accurate to the best of zny knowledge. I hereby
aclano�r�edge that I have received a copy of�Z Basic Inceni�ves, which governs the gzantzng o�tax
abateznenis, �'ce�waivers and ielease of Ciiy �iens, and that any VIOLATZON of the terms of fhe N.EZ
Basic Incen�ves ox MISREpRESENTATxON sha�l constitute grounds for rejection oian applicat�on or
ier�nination o�in�entives at the discreti�n o#'the City. �
I understand that fhe approval of fee waivers and other inceniives shalI nat be deemed to be approval of
any aspect of the proj �ct, I understana that fi am xesponsible in ob�aining required permzts and
iz�spections from �he Czty and iza ensuring t}ae prQjEct is locatec� � the carrect zoning disfrict,
T agree ta provide any adc�itional in.formafion far deteimining eligibility as requesied by the City.
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�'I`YFED NA,M�) (A ORTZED SiGATATURE - - - -� - ������
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Electronic version of this form is avai�able by request. Please call 817-87?-7381 to reque�t.a copy.
For Of�ce Use Only --- ^ - - -� -� �
���lpplication No., 5,��,'��j� �' � �;s,hich NE�? ,�j��
TAD ID . . � . � �i� Cdnform vvith Zon�ing? °°�].Yes * �]l�io
� Co�tract �or deed.7 . ❑ yes �. No Type? � �.New constructian ❑ �Reh�.b
Constr�cti�n compleiion dafE7 � Befare NEZ [� After IV�j Z Ownershz
R�hab at or higher than 30%? � . P � Yes .[1 Na
❑ Yes ❑ No Cansist�nt with the NEZ plan'? � y�s
Tax current on this. ra e? . _[' Na'
�� � m' ��'� ❑ No Ta.x curreiit an 6ther ro erties?
City 3iens qn this property? .; P P � Yes�� 0 No :" -
City li�;ns'on�ather properties?
m Weed liens ❑ Yes � No � Weerl liens , .
� Board-up/apen stiv.cture liens � � Ye� � �°
❑ Yes �] No � � Board-up/open structu�re ?iens [] �es � No �
.� L�emo�ition liens ❑ Yes X N'o �
� Dei�iolition 2iens ❑ Yes �/ No
� Paving liens ❑ Yes 0 No � Paving liens �
� Order oi dernolition ❑ �'e� � No
❑ Yes 7Q Na � Ord� of demoli�ion ❑ Yes [� �o
Cert�fied7 ❑ y�s � No Certified. by . Date ceri7fication issued7
If no# certzfied, reason � ������� , _
Referred to; DEcon�mic Developm:ent �Housin _-
— _ , - - _ _ g �Develaprnent - (�Water []Code �TPW
Re'vised August z3, 2001 . . '
4
City of -.�'o�t T�Yorth, Texas
Mayor ar�d CounciC Gorrrmu�n�c�t�o�
DAT� REFER�NCE NIJMBER LOG NAME
sl� oro2 G-� 9�35 �
05N EZ
PAGE
1 af 3
' sua��cT AUTHORlZATIaN T� ENTER INTO TAX ABATEMENT AGREEMENTS WITH THE
FORT WORTH HOU5ING FINANCE CORP4RATlC)N F4R THE DEVELOpMENT OF
S.IKTEEN SINGLE-FAMILY HOMES FOR THE EASTCREST SUBDIVISI�N LOCATED
1N. THE ST�P SIX NEIGHBORHOOD EMP�WER.MENT ZONE
RECOMMENDATION:
It is recomm�nded that tf�e C�ity Cauncil:
'�, Appro�e the Fort Worth Housing Finance Corporafiion (FWHFC) ap}�fication for M�tnicipai Property
Tax Abatement for the Eastcrest Subdiuision; an�
2. F'in� tt�at the sta#ements set farth in the recitals of the attached Tax Abatement Agreements (the
Agreeme�ts) with FWH�C are true and correct; and �
3. AuthQrize th� City Manager ta er�ter into fax abatement agreements with FWHFC for the develapment
of sixieen single-family homes in the Eastcrest S�bdivisian located in .the Stop Six �Neighbarhood
Empow�rment Zone (NEZ), in accordance witF� the NEZ Basic 1r�eentives.
DISCUSSION:
Tf�e FWHFC is the developer/owner of the Eastc�est Su�bdivision in the 4700 Black af East Berry Street
and Eastcrest Cnur# laca#ed in NEZ No. 1: �
T�e FWHFC a�piied for mur�icipa{ properiy tax abatement under the NEZ Basic Incentives (M&C G-
'� 32a8R dated .lune 5, 2042, M&C G13580 dated Apri� 2, 2a02, as amended, and M&C G-'13662R
dated July 23, 2442, as amended). The Hausing Department has re�iewed tne application and certified
that the pr�perty mee#s the eligib�lity criteria to receive NEZ m�nicipal property iax abatement. Th�
NEZ Basic Incenti�es offers a five-year mun�cipal property tax abatement af the increased �alue of
improvements t� a deVe�operlowner ofi any new home can�tructed within a NEZ.
Upon execu�ion of the� Agreements, the to#al assessed value af each home in the Eas#crest Subdivisian
used for cafculating municipal praperty tax will be frozen far a fi�e-year pe�iod, star�ing on January 1, of
I the year following the year in w�ich the hame is sold, at the pre-�mprovement v.alue of each {ot as defined
by the Tarrant Appraisal District (TAD) an January 1, 2a02, as follows.
� Pre-lmpro�ement TAD Value of lmpro�ements $ -0-
o, Pre-lmp�avement TAD Value of Land $1,�DQ�per lat .
• Tatal Pre-Improvem�nt TAD Value $�,D00 per lot
C'ity of �'ort �Vorth, Texc�s
Mayor and Cou�cil Comn�unica�tio�
DATE REFER�NCE NUMB�R. LnG NAME PAGE I
s�� oroz .��� 9�35 I 05NEZ ` 2 ofi 3
SUBJECT AUTHORIZATfON TO ENTER iNT� TAX ABATEMENT AGREEMENTS WITH THE
FORT WORTH HDi1SlNG FfNANCE CORP�RATION FOR THE ❑EVEI.OPMENT QF ',
SIXTEEN SWGLE-FAMIL.Y HOMES FOR THE EASTCREST SIJBDNISION LOCATED !
iN THE STOP SIX NEIGHBORHOOD EMP�WERMENT �ONE __ �
A�dress
3100 Eastcrest Co�rt
3'� Q� E�SfGf�5� COUI'�
3104 Eastcrest Court
3105 Eastcrest CoUrt
31 fl8 Eastcrest Court
31 p9 Eastcrest Court
31 �l 2 Eastcrest Court
3113 Eastcrest Court
31 '! 6 Easicrest Court
3120 Eastcrest Court
3124 Eastcrest Court
3128 Eastcrest Co�rrt
3132 Eastcrest Court
3133 Eastcrest Caurt
3136 Eastcrest Court
3137' Eastcrest Court
Le�al Description
Lot 1 D, Black �, Eastcrest Additinn
Lot 6, Black 2, �Eastcrest Addition
Lot 9, Block 1, Eas#crest Additian
Lot 5, Block 2, Eastcrest Addition
Lot 8, Block 9, Eastcrest Addit�on
�ot 4, B1Qck 2, Eastcrest Addition
Lot 7, Block �, Eastcrest Additian
Lat 3, Block 2, Eas#crest Addition
Lot 6, Blo�k 1, Eastcrest Additio�
Lot 5, Black �, Eastcres# Addition
Lot 4, Block �, Eastcrest Addition
�ot 3, Black 1 T Eastcrest Addition
�at 2, Bjock 'f , Easicrest Addition
Lot 2, Bloc4c 2, Eastcrest Additian
Lot 1, Block 1, Eastcrest Add�tion
Lot 1, Block 2, Eastcrest Addition
FWH�C expects ta compiete construction an or be'fare June 3�, 2003, and seli the sixteen homes to
new owners. Upon the safe ofi each home by �WHF�, the Hausing Department staff will present the
proposed assessment of th� tax abatement agreements to the City Council for approvai if ihe new
owner meeis all e{igi6le criteria as �stated �in the NEZ Basic Incentives. .
FWHFC wiil invest $1,600,00� to construct sixteen sing�e-family homes in the Eastcrest Subdivision..
The lacation of the proposed deve�opment,..iypical elevat9on, and praject description are attached #o t}�is
Mayor ar�d Cauncil Communication. TF�� municipal prope�ty tax on the im�roved value is est�mated at
$558 per house per year or a total of $44,644 over the fEve-year period. -
On August � 3, 2Q02,� tY�e abo�e praposal was endo�sed by th� Economic and Community Development
Committee for C�ty Councii approval.
T1�e Eastcresi Subdivision is located in C4UNCIL. DISTRiCT 5.
�
+�r�1 Of .�'03"� �4�"i��ly �'E�dZS
Nf��or �nd Council Commur�icatio�_
❑ATE R�FEREfVCE NUMBER L0� NAl41E i�AGE � '
9110102 � C-�'19�3�_ �_ aSNEZ �- 3 af 3
s�s�ECT . AIJTH�RlZATiON T� ENTER lNTO TAX ABATEMENT AGREEMENTS WlTH THE
FORT WORTH M�USWG FINANCE CORP�RATfON FOR THE DEVELQPMENT OF'
SIXTEEN S1NGLE-FAMILY HOMES FOR THE EASTCREST SUBDIVISfON �.00ATED ,
IN THE STOP SiX.NEiGHBORHOOD EMPOWERMENT ZONE _ _ ,
�ISCAL INFaRMATfONlCERTI�ICATION,:
The Finar�ce Director certifies that�this actian wi{I have no material effect on City funcfs.
F2R: n
Suhmitted for City Manuger's
Of�ice by:
Reid Rector
�riginating Departr�ent He�d;
Jerome Walker
� FL1ND , ACC�UNT ,
� <toa
6140 ,
t '
, 1
7537 � (£rom)
CEN7'El� � AMOUIVT � CITY SECRETA.RY
� �r
I
I �
� APPROVED fl911Q/02
Additianal Inform�tian Cantact:
Jerome Walkcr � 7537 ,