HomeMy WebLinkAboutContract 28125GITY ��CREiA�� ��� ,
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STATE OF TEXAS §
COUNTY OF TARRANT §
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TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A
�EIG�ORHOOD EMP4WERMENT ZONE
� This TAX ABATEMENT .AGREEMENT (`.`Agreement") is entered in,to by and
between the CITY OF FORT �WORTH, 'I'�XAS (the "City"), a home rule municipal
corporation organized under the laws of the State of Texas and acting by and through
, its duly authorized Assistant City Manager, and the Faz't Worth
Housing Finance Corparafion, a nan-profit housing development
corporationT ("Owner"), acting by and through Jerome 'Walker, its duly
autharized �wners' Representative. � �
The City Council af the City of Fort Worth ("Cii� Council"} hereby finds and the City
and �wner hereby agree that the follawing statements are true and correct and cons�itute the
basis upfln which the City and Owner hav� entered into tk�is Agr�crnent:
A. Chapier 378 of the Texas Local Government Code allows a municipality to create�
a Neighborhood Empowerment Zane (NE2) if the municipality determines that
the creation af the znne would pramote: . .
1. The creation of affordab�e housing, including manufactured h,ousing in the
zone;
2. . An increase in economic develapment in the zone; . .
3. An increase in the quality of social services, education, or public safety
� provided to residents of tk�e zone; or
� 4. The re�iabilitation of afford�bie housing� in the zone.
B. Chapter 378 of the Texas Local Gavernment Code provides that a municipality
that creates a NEZ, may enter into agreements abat�ng z�r�nnicipal property taxes
an property in the zane.
C. On 7uly 3�., 2001, the City adapted basic incentives for property owners who own
property located in a NEZ, stating that the City eiects to be eligible to participate
in tax abatement and including guidelines and criteria goveming ta�c abatement
agreements enkered into between the City and various, third parties, titled "NEZ
Basic Incentives" ("NEZ Ineentn�es"), which is attached hereto as Exhibit "A"
and hereby made a part of this Agreement for aIl purposes.
D. The NEZ Zncentives cantains appropr�ate 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"). .
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E. On September 21, 2001,� the Fort Worth City Council adopted Ord'anance No.
f 4767 (the "Oxdinauce"} establishing "Neighborhood � Empowerment
Rein�estment Zone No. 1," City of Fort Warth, Texas (the "Zane").
F. Owner owns certain real properly located entirely within the Zane and that is
more particularly described in Exhibit "B", attached hereto and hereby made a
part of this Agreement for all purposes {the "Premises").
G. Owner or its assigns plan ta construct the Required Irnprovements, as de�ned in
Section 1.1 af this Agreement and as described in Exhibit "C", an the Premises tfl
be used for � as a single-family residence that will be awner occupied. {the
"Pro,�ect"). �
H. On 3eptember 28, 2001, Owner submitted an application for NEZ incenti�es and
tax abatement to the City concarning #he cantemplated use of the Premises (the
"AppIication"), attached hereto as Exhibit "D" and hereby mac�e a part a� this
Agreement for all purposes. ,
I. The City Council f`inds that the contemplated use of the Premises, the Required
Tmprav�ments, as defined in Sectaon 1,1, and the terms of thrs Agreement are
consistent �viti� encouraging developmenfi af the Zone in accordance with the
purposes for its creatian and are in eornpliance vvith the NEZ Incenii�es, tI�e
R�solution and other applicable laws, orciinances, rules and :regulations.
,�. The City Cv�ncil finds that the terms of this Agreement, and the Prernises and
Required Improvements, satisfy the eligibility criteria of the NEZ Incentives.
K. Written notice that Che City intends to enter into this �,greament, alang with a
copy of this Agreement, has been furnished in the man.ner prescribed by the Code
to the presiding officers of the governin.g bodies of each oi the taxing units in
which the P�emises is located.
NOW, THEREFORE, the City and Owner, for and in eonside�ation af the tertns and
conditions sei forth herein, do hereby-cantract, eo�enant and a�ee as fallows:
1. O'WNER'S COyF,�V�NTS.
1.1. Rea� Prot�ertv Ympravements.
Owner shall construct, or cause to be construc�ed, on and within the Premises
certain improeements consisting of a single fanuly reside�pce, (i) of at least I,20D square
feef in size, and (ii) having a construct�an cost upon completion of $ 60,000 including siie
deveiopment costs but such minimum canstruction costs shall be �reduced . by at�y
constructian cost savir�gs (collectively, the "Requiared Ymprawements"). Owner shall
pravide a sur�ey of the campleted home showing Requixed Improvements h�f��� ±.he
home is sald. The parties agree that the final survey shall be a part o�>fihis �gre��u4,r�d
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shall be labeled Exhibit E. Minor variations, and more substantial variations if approvec�
in writing by both of the parties to this Agreement, in the Requir•ed Improvements from
the desc�iption provided in the Applicatian foz' T.ax Abatement shall not constitute an
Event of Default, as defined in Sec�ion 4.1, provided that th.e conditions in the first
senterice flf this Section 1.1 are met and the Required Improvements are used for t�e
purpos�s and in the man�ner described in Exhibit "D"..
1.�. Comnletian Date of Reauired Improvements.
O�crvner coyenants to substantially complete construction of all of the Required
Improvements within two years from the issuance and receipt af the building permit,
unless delayed because of force majeure, in which case the two years shall be exten�ed
by �he number. af days comprising the specifie force majeure. Far puzpases of this
Agreeznent, force majeure shall mean an event beyond Dwner's reasonable contral,
including, without limitation, delays caused by adverse r�veather, delays in receipt of any
required permits or approvals fro�n any governrriental authority, or acts of God, fires,
strikes, nation�t dzsasters, wars, riots and material or labor restrictions and shortages as
determined by the City of Fort Warth in its sole discretion, which shall not be
unreasonably withheld, but shall not include canstruction delays caused due to purely
financiai � matters, such as,. without limitation, clelays zn �he obtaining of adequate
financing.. �
1.3. Use af Premuises.
.� Owner covenants that the Required Improvements shall be eonst�cucted and the
Pr�;mises shall be sold so thai it is continuously used as the prirnary residence af the
Home Buyer in accordance nvith the description of the Project set farth in Exhibit "D". In
addition, Owner covenants that throughout the Term, the Required Imparovements shall
be aperated and nnaintained far ihe purposes set forth in this Agreement and in a manner
thaC is consistent with the general purposes of ericouragzng development or
redevelopment of the Zon�.
2. ABATEMENT AM03JNTS, TERMS AND C�NDYTIOI�TS,
Su6ject to and in accordance with this Agreement, the City hereby grants to Owner a real
property tax abatement on the Premises, the Required Improvernents, as �specifically pravided in .
this Section 2("Ahatement"). "Abatement" of real pz'operty taxes only inc�udes City of Fort
Worth-imposed taxes and not ta�ces from other taxing en�tties.
2.1. Amaunt of Abate�nent.
The actual ambunt of the Abatement granted under this Agreement shall ' he
based upon the increase in value of the Premises and the Required Improvements o�er
their values an ranuary I, 2002 and according to the � Tarrant Appraisal Disirici, this
amaunt is $1,OQ0 the year in which this Agreement was entered inta f-
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One Hundxed percent (100%) of the increase in value from tY�e
cnanstructian of the Required Ymprovements.
rf the total construcfiion costs of the Requ�red Improvements are less than as
provided in Section 1.1 of this Agreement, excepi ihat such minimum canst�uction costs
shall be reduced by canstruction cost savings, Owner will not be eligible to receive any
Abatement under this Agreement.
2.2 Term of Abatement.
The term of the Abater�ent (the �"Tern�"} shall begin o� January 1 oi the
year following the calendar year in which the Required Impro�ement is sold to a.
Home Buyer to be used as its primary z-esidence (`Beginning Date")_and, unless
soaner terminated as herein provided, shall end- on December 31 immediately
preceding the fifth (5th) �anniversary of the Beginning Date. Upon the sale ta a_
Home Buyer, City shall certify � t�iat the Required Impro�ements have been
complete� iz� satisfactian of the terms of this Agz�eement.
However, the Compliance Auditing Term will begin on. the date thzs agreerrient is
executed and will end an the expiratian date of the Term. .
�.3. Protests Dver Apprai�a�s or Assessments.
�wner shall have the righ� to protest and cantest any or all appraisals or
assessments of the Premises and/ar improvements thereon.
2.4. Abatement An�atian Fee.
The City acknowledges re�eipt from �O.wner of the required Abaiement
applicatian fee of twenty-five dollars ($25.d0�.
3. RECORDS, CERTIF�CATION AND EVALUATION OF PR�,TECT.
3.�.. �nsnection of Pre�nises.
Between the execution eiate of this Ag,ceem.e�C and the last day of the Term, at any
�ime during constr�ction of the Rec}uired Tmprovements and fallowing reasonable natice
to Owner, the City sha�l have and Ovwner shall provide �ccess to the Premises in order for
the City to inspect the Premises and evaluate the Required Improvements ta ensure
compliance with the �terms and conc�itions of this Agreement.. Owner shall cooper�te
fully witl� the City c�uring any such inspection and/or evaluatioz�. ,. , 1
3,�. Certification
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, Pzoperty Owner, and Home Buyer once the property is sold, .shall certify �nnually
to the City that it is in cornplianee with each applicable term of �his a�Zeement: The City
shall have the right to audit at the City's expense the financial and business records af
Owner that relate to the Canstruction of the Praject and Abateme�t terms and conditions
(collectively, the "Records") at any time during the Compliance Au�ting Term in �rde:r
to determine ca�npliance with �this Agreerneni and ta calculate the correct percentage of
Abatement available to �wner. Owner shall make all applicable Records a�ailable to the
City on th� Prenuses or at another location in the City foIlawing xeasonable advance
notice by the City and shall otherwise cooperate fuZly with the City during any audit.
3.3, P�Q�ision oi Inform��ig�.
On or befare February 1 following the en� of e�ery yea.z- duziz�g the Compliance
Audifing Term and if xequested by the City, �wner shall provide infarmafian and
documentation for the previous � year th.at addresses Owner's complianee wiih ea�h of tlie
terms and canditiflns of this Agreement for that calendar year.
Failure to pravitle all information within the control af Owner required by this Section
3.3 siaall consiitute ar� Event of Default, as de,fined in Section 4.L
3.4. _ Determination of Compliance.
On ar�hefoz� August 1 of each year during the Campliance Auditing Term, the
City sliall make a decisian and nile on the � actual annual percentage of Abatement
avaiiable to Owner for the following year a� t�e Term a�d shall notify Owner o� such
decision and ruling. Th� actual percent�ge of the Abatement granted for a g'tven year af
the Term is theref�re based ttpon �wner's compliance with the terms and conditions of
this Agreement during the previous year of the Campliance Anditing Term.
4. EVENZ'S OF DEFAULT.
4.1. Defined.
Unless otherwise specified herein, Owner sha11 be in defauYt of this Agreement if
{i) Owner faiIs to canstruct the Required Tmprovemen�s as de�ined in Section 1.1; (ii) ad
vaIorem real property ta�ces wiCh respect to the Premises or the Praject, or its ad valarem
taxes with respect to the tangible persoz�al property located on the Premises, becoane
delinquent and Owner does not timely a�d �roperly follow the Iega� procedures for
protest andlar cantest af any such ad valorem real property or tangible personal property
taxes or {iii} Home Buyer does not use f�e Premises as primary residence once the
abatement begins (collectively, each az� "Event of Default").
4.�. Notice to Cure. --
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Subject to Section 5, if the City determines tYzat an Event of Default has occurrad,
the City shail pro�ide a written notice ta Owner that describes the na�ure of the Event of
Default. Owner �ha11 have nanety {90) calendar days from the date of receipt of this �
rvritten notice to fully cure or have cured the Event of Default. If Owner reasonably
believes th.at Owner will require additional time to cure the Event ai Defau�t, Ownex shaIl
promptly no�ify the City in writing, in which case (i) after advising the City Council in an
open meeting of Ovvner's efforts and intent to cure, Owner shall have one hundred ei.ghty
(� 80) calendar days from the original date of receipt af t�e Written natice, or (ii) if Ownez
reasonably believes ihat Owner will require more than one hundred eighty (180} days to
cure the E�ent af D�fault, after advising the City Council in an open meeting of Ownei's
e�arts and intent to cure; such additianal time, i� any.; as may be offered by the 'City
Couneil in its sole discretion. �
4.3. Te�rmination for Event of De�ault and Pavment o� Liauidated Damages.
If an Event of Default which is defined in Sect�on 4.1 has not been cured within
the time frame specifically allvwed under Section 4.�, the City shall have �he right to
terminate this Agreer��nt imrnec�iately. Owner acknowledges and agrees that ar� uncwred
Event a� Default will (i) harm the City's economic development and redevelopznenC
efforts on the Premisas and in the vicinity of the Prernises; (ii) require unplanned and
expensive additional administrative ovarsight and invol�ement by the City; and (iu)
othez�wise har� the City, and �wne;r agrees that the arnounts of actual damages therefrom
are specu�ative in nature and will be difficult ar impossible to ascertain. Therefore, upon
termination of this r'lgreernent for any Event of Default, Owne:r shall not be eligible for
the Abatement f�r the reznaining Term and Owner shall pay the Czty, as .liquidated
damages, aIi taxes tt�at were ahated in accardance with this Agreernent for each yeajr
when an Event af Default existed and which otherwise would have been paid to the City
in the absence oi this Agz-eement, The City and Owner agree that this amount is a
reasonable approxiinat�on of actual damages that the City will incur as a result of an
uncared Event af De�'ault and that this Section 4�.3 is intended ta pravide the City with
cozarzpensation for actual damages and is not a penalty. This amount may be �ecovered by
the Cit�y through adjustme�ts made to C3wner's ad valarem property tax appzaisatl by the
appraisai district that l�as jurisdiction over the Prerruses. �therwis�, this amount shall be
due, owing and paid to the City within sixty (60) days foIlowing th�; effective date of
termina�ion flf this Agreement. In the event that all or any portion of tius amount is not
paid to the City within sixty {b0) cl.ays following the effective date o� terminat�on" of this
Agreezz�ent, Owner sha11 aIso be liable for all penalties and inter�st on any outstazading
amount at the statutory rate fo�' delinquent taxes, as determined by the Code at the time af
the payment of such penalties and interest (cur�rently, Section 33.01 of tha Code}.
4.4. Termination at Will.
If the City and Owner mutually deternune that the development or use of the
Premises ar the anticipated Required Impro�e�ents are no longer agpropriate or %asible,
or that a higher or bettex use is preferable, the City and Owner �ay :texm�na�� �tt�
�Agreement-in a written format that is signed by both parties. In this e�e:,�E, �{��-if kY�� l�e�?�r�. �
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has commenced, �he Term shall expire as of the effective date of the termination af this
Agreement; (ii} there shall be no recapture of any taxes previously abated; and (iii)
neither party shall have any �urther z�ghts ar obiigations hereunder.
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6.
City•
EFFECT� QF SALE OF PRENIISES.
� The Abatement granted hereunder shall vest� anly in -�wner and cannot be
assigned to a new owner of aIl or any portion of the Premises and/or . Required
Tmprovements withaut the prior written consent of the City Council, which consent sha11
not b� unz-easanably withheld provided that (i) �e Ciry Cauncil finds that the proposed
assigriee is financially capable of maeting the terms and conc�itions of this Agreement and
(ii) the pro�osed purchas�;r agrees in writing to assume all terms and condrtions af �wnear
under this Agreement. Owz�er may not otherwise assign, lease or conuey any af its rights
unde.r this Agreament. Any atCernpted assigz�me�it withaut the City Council's prior
written consent shall constituie grounds for terminatian of this Agreement and the
Abatement granted hereunder following ten (10) calendar days of receipt af rx+ritten
natice from the City to �wner. ,
In no event shall the abatement term be extended in the event of a subs�quent sale
or assignment. � ,
NOT�CES.
AlI written notices called for or reguired by this Ag�reement shall be addressed to
the following, az' such aiY�er party or � address as either party designates in writing, by
certiiied mail, postage prepaid, or by hand delivery: ��
Owner:
City of Fort Worth
Attn: City Manager
laQO Throc�morton
Fort �Vorth, T� 7b1Q2
7. NIISGELLANEOUS.
7.1. Bands.
Fort Worth Hausing Finance Corparation
1000 Throckmorton .
Fort Worth, Texas 76102
The Required Improvements will not be �nanced by tax increment bonds. Tk�is
Agr��ment is subject to rights af holders of outstandang bonds of the City.
7.�. Conflicts of Interest.
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Nei�her �he Premises noz' any of the R�quired Improvements covered by this
Agr�ement are owned or leased by any n�ember of the Czty Council, any member of the
City Plannir�g or Zoning Commission or any member of the governing body of any taxing
uniCs in the Zone.
7,3. Conf�icts Betvween Documen�s.
In the event of any conflict be�ween the City's zoning flz'dinances, or other City
ordinances or regulations, and this Agrec:ment, such ordinances or xegulations shall
contro�. In the event af any canflict betw�en the body of this Agreement and Exhibit
"D"., the body of this Agreemen� shall cantrnl. �
'�.4. Future Annlication.
A portion or all of the Preznises andlor Required Improvements may be eligible
for eamplete ar partial exemption fram ad valorem taxes as a resuit of existing law or
future legislation. This Agreernent shall not be ��onstrued as evidence that such
exemptiazzs do nat apply �o the Premises and/or Required Irnprovements.
'�.�, Citv Counci� Authorization.
This Agreement was authorized by Che City �Cot�ncil through approval af Mayar
and Council Communication No. on �. which, among other
things, auYhorized the City Manager to execute ihis Agreement on behalf of th� City.
i.6. Esto�pel Cert�ificate.
Any party hereto may request an estappel certificate fram anath�ez' party hereto so
Iong as the certi�cate is requesied in connection wiih a bona fide business puzpose. The
certificate, which if z'equested will be. addresset� to the Own.er, shall inelude, but not
necessari�y be limited to, statements �hat this Agreement is in ft��l force and effect
without c�efault (or if an Event o� Default exists, the nature of the Even� o� Default and
curative action t�ken ancllar necessary to effect a cure}, the remaining term .af tlus
Agreement, the leveis an,d remai�zung term of the Abatement in ef�ect, and such other
matters reasonably requested by the party az- parties to r�c�ive the certificates,
7.7. Owner 5tandin�.
Owner shall be deemed a groper and necessary party in an� litigation questioning
ar challenging the validity of this Agreement or any �af khe underlying laws, ordinances,
resoTutions ar City Cauncil actions authorizing this Agreement, and Owner shal� be
entitled to intervene in any such litaga�ion. �
i.8. Venue and .Turisdietion.
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This Agreernent shall be construed in accaxdance wi�h the laws of the State of
Texas and applicable ordinances, zules, regulations or policies of the Clty. Venue for any
actian under this A;greer�ent sha11 lie in the State Districi Court of Tarrant County, Texas.
This Agreement is performable in Tarrant County, Texas
'i.9. Recardation.
A certified copy of this Agreerrient in recordable farm shall be recorded in the
Dee.d Records of Tarrant County, Texas.
7.10. Severabilitv.
, If any provision of this Agreement is held to be invalid, illegal or unenforceable,
� the validity, legality and enforceability of ihe remaining provisions shalI not in any way
be affected ar impaired. � '
`�.11.. Headin�s_Not Controllin�.
Headings and titl�s used in this Agreement are far reference purposes only and
shall not be deemed a part of this Agreeznent. . � -
q.l�. Entiretv oi A�reem�nt.
This Agreement, including any exhibits attached hereto and any documents
incor�orated herein by r�ference, cflntains the �n�ire understanding and agreement
betwe�n the City and Owner, Cheiz assigns and successoz's in interest, as to the matters
canta�ined herein. Any prior or contemparaneous oral ar written agareement is hereby
declared null and �oid to the extent in conflict with any pravision of this Agreement.
This Agreement shall nat be amen.ded unless executed in writing by �both parties and
approved by the City Counci�. This Agreement may i�e exeeuted in multiple
caun�erparts; each qf which shall be considered an arigi�al, but all of wh�ich shall
constitute one instruznent.
E
E �����J -
XECUTED thzs day of , 20a2, by the Cjty of Fort Worth,
Texas.
EXECUTED this �day of �� e,�,, ��, -p �,- , 2402, by Fort Worth Housing
Finance Corporation.
CYTY OF FORT WORTH: FORT WORTH HOUSING FINANCE
By. . -� s -
Assistant City Manager
C�RPORATION:
. ��
,�� �
J � e C. Walker
ATTES'� ,
�_��/
By: �.�l.r�� _F / , . _ � .
_;. � �.
ity Secretary �
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APPROVED A � F�RM AND LEGALIT'Y:
B '�
y: .
Cynthia arcia
� Assistant City Attornay
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M&C: 1 - � �! � f . _ ,� .
s
.�
AT'TEST:
:
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STATE OF TEXAS §
COUNTY OF TARRANT �
BEFORE ME, the undersign�d authority, on this day personally appeared
I°�,�� a� 'R�To� , Assistant City� Manager of the CTTY OF FORT WORTH, a municipal
corporation, known to me ta be the person and officer whose name is s�bscribed to the %regoing
instr�iment, and acknowledged to me tha� the same was the act of the said CI'I'Y OF FORT
WORTH, TEXA,S, a municipal corporation, that he was duly authorized to perfarm t�e same by
appropriate Mayor and Cauncil Communica�iaz� o� Che City Council a� �he City of Fort Wo:rth
and that he executed the same as the act of the said City for the purposes and cansidera�ion
therein expressed and in the capacity therein stated. '
GNEN UNDER MY HAND AND SEAL �F OFFTCE thzs ��� day of
f(? Ca_'�.�-f,�.¢i�� , 2002. .
�r�e.c�. ,i�a�,.�-�
Notary Public :in and for
the State of 'I'exas
" t�o ��1/i9 -t�l4��i1 e�
Notary's Printad Name
RY P
�'�..-:.� R�SEL�A BARNES
��'• � F� N�TARY PUBLIC
�9 „.�� State ot T�xas
?�oF � C
�.........� omm. �xp. Q3-37-2005
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�STATE OF TEXAS §
COUNTY OF TARRANT ' §
BEFORE ME, the undersigned authority, on •this day persanally appeared �� �- �,,�. c� C•,��. �{���
���.�-� of the Fort Worth Housing Finance Corporation, a Texas non- profit corporation,
knawn to zzxe �o be the persaa� wl�ose narne is subscribed to the foregoing instrument, and
acknowledged to me that he execu�ed the same for the pur�oses and cansideration therein
expressad, in the capacity therein stated and as the act and deec� of tl�e Fort Warth Housing
Finance Carporatian.
-�
GIVEN UNDER MY HAND AND SE.AL OF OFFICE this ��- day
of ��� `�ti..,. � � � , 2002. ,
��� ���r .
Notary Public in and for - .�; � ; �. � _ . ..� . . , � � -
�he Sta�e. of T�xas -`' `�4 �I��n H�vU�rr' �
� `'�' i`= MY COMMISSION EXPlHES �
' ��9. �; ��r '�� �' �3 ��
_ . J. , . �:;. ,�.� _, .. .,: .:.
Notazy's Printed N�zne
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Exhibit A: NEZ Incentives
Exhibit B: Property Descriptian
Exhibit C: Project desc�iption incIi�ding kinc3., number and locatian of the proposed
improvem�nts.
Exhibit D: A�plication: (NEZ) Incentives and Tax Abatement
Exhibit E: Final Survey
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�X�r�� � �
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ci�r o� �o�� wo���
NEIGHBORHQO� EMP0IN�RME�IT ZOAIE (PlEZ) �ASIC INC�NiIVES
Adopfed by fhe Fort Worfh City Council on July 31, 2009 (M&C G�93208 R)
Amended by the Fori Worth City Council on Apri12, 2002 (M&C G�93580}, July 23, 2002
{M&C G-93662) .
l. G�iV�RA� �URPOS� AN� O�J�CT`i1fES
Chapter 378 o�F ti�e Texas Local Government Code aflows a municipality to create a
Neigh�orhood Empawerm�nt Zone (NEZ) wher� a"...municipa�ity determines that the creation
of the zone would prorr�ofe: �
(�) th� creatian of affordable housing, including manufactured housing, in the zone;
(2) an increase in econamic develapment in the zone;
{3)� an increase in the quality of socia� services, education, or public saf�ty provic�ed fo
residents of the zone; or
{4} the rehabilitation ofi affordable hausing in the zone."
The City, by adopting the foif�wing incenti�es, wilf promote affordabls housing and
economic developrr�ent in ihe NEZ, NEZ �incentives wi[I not be granted after the N�Z expires as
defined in the resnlution designaiing fhe NEZ. For eac� NEZ, the City Counc9l may appra��
addifional terms and incentives as permit�e� by Chapter 378 of the Texas l.ocal Gfl�err�ment
Code or by City Council resolutian. However, any tax abatement awarded before the expiration
of a NEZ shall carry its fu�l term according to its tax abatement agreement appra�ed by the C�ty
Cauncil. .
�s mandated by sfiate law, ghe prnperty fax aba4ement under this poiicy applies to �he
owner5 0� real property. Nothing �n the pvlicy shali be consfrued as an obligation f�y �he
City �fi �'or� War�F� to appro�e any iax abatement appiicatfon.
II. _ DE�II�ITIOf�S
"Ahatement" mear�s the full or partial exemption fram City of For� Worth ad vaiorem taxes on
eii�ible properEies for a period of up to 10 years and an amour�t af up ta 100% of the increase in
appraised value (as reflected an t�e cer�ified tax roll of the appropriate county appraisal district)
resulting fram improvements. Eligibf� prop�rti�s must be lacated in t�e NEZ,
"Base Value" is th� value of the praper[y, excl�ding lar�d, as determfned by tne Tarranf County
Appraisal District, during the y�ar re�abilitation occurs.
"Building Standards Commission" is the commission created under Sec. 7-77, Article IV.
Minimum Building Standards Cade of fhe For� Worth City Code. �
"Cap�tal lnvestmerrf" Encludes o�ly rea� proper�y improvements such as new facilities and
structures, si�e improvements, facifity expansion, ar�d facility moderrtization. Capifal Investment
does N�T include land acquisifion eosts andlor any exisiing improvements, ar persanai �ro�erty
(such as machinery, equipment, andlor supplies and invenfory}.
"Clty of Fort Worth Tax Abatemenf Policy 5tatement" means the pnlicy adopted by City Council
on February 29, 2Q00.
"CommerciaUlndusfrial Development Praject" is a de��lopment project which proposes to
construct or rehabilitate commerciallindustrial facilEties on property that is (or meets the
requirements to be} �oned cammercial, industrial ar mixed use as defined by fhe City of Fart
Worih Zaning Ordinance.
"Comrnunity Facilrfy Development Projecf" is � deveEopment project which �roposes to cons#r�ct
ar rehabilitate community facilities on property that allows sucF� use as defined by the Cifiy of
Fort Worth Zor�ing Ordinance.
"Eligible Rehabilitatron"
Rehabilitatio� does NOT
andbr supplies).
incfudes only� p�ysical im�rovem�nts to real property. EligibEe
include personal property (such as furniture, appliances, ec�uipment,
"Gross Floar Area" is measured by taking th� oufside dimensions of the bui{ding at eac� flaor
levei, exce�at that portion of the basement used tinly for uti{ities or starage, and any areas within
ihe buifdin� used for ofF-street parl�ir�g.
"Minimu►n Burlding Standards Code" is Article IV of the �ar� Worth City Code adopted pursuant
to Texas Local Government Code, Chapters 54 and 214.
"Mr"norify Business Enterprise (MBEJ" and "Women Buslness Enterprise (WBE)" is a minority or
waman owned business that has recei�ed cer�ification as �ither a carti#ied MBE or certified
WBE by either the Norfh Texas Regiona� Certification Agency (NTRCA) or the Texas
�epar�rnent of Transportaiion (TxDot), Highway �ivision.
`°Mixed-Use Developmen# Project" is a deve[opment project which proposes to c�nstruct ar
rehabilita�te mixed-use facilities in wF�ich residential uses canstitute 20 percent or more a� the
total gross flaor area, and office, eating and �nter�ainment, and/or retail sal�s and service uses
consiituie 10 percent or mare of the tatal gross fioor area and is an proper�y that is (or meets
the requirements to be) zoned mixed-use as described by fF�e City of Fort Worth Zoning
Qrdinance.
"Multi-family Development Project" is a development project which proposes fia construct or
rehabiiitate mulfi-family reside�tial li�ing units an property that is (or meets the requirements to
be) zaned multi-family ar mixed us� as defned by the City of Fort Worth Zoning Ordinance.
"Reinvestmen� Zone" is an area designat�d as such by the City of �ort Wortf� in accardar�ce
with the Property Rede�elapment and Tax Aba�emen# Act codified in Ch�pter 312 of the Texas
Tax Cod�, or an area designated as an enterprise zone pursuant to the Texas Enterprise Zone
Acf, codified in Chapter 2303 �fi the Texas Go�ernment Code.
�
/�.
14AlJI�IClPAL PROF��f�il( TAX AB�►i�IVi�I�TS
R�SIDE[ViIA�, PROPERTI�S LOCl�iED IN A NEZ: FULL A�A7�MEidT' �OR �
Y�ARS
2
. 1. �or residential property purchas�d bafore NEZ designation, a homeowner shafl be
eligible to appfy for a ta�c abafement by meeting the fol�awing:
a. Praperty is owner-occupied and the primary residence of fhe homeowner prior to
the final NEZ designation. Homeowner shall provide proof af awnership by a
warranty d�ed, affidavit of heirs�ip, or a prabated will, and shaff show proof of
�rimary residence by homestead exemption; and
b. Homeowner must per�orm EGgibl� Rehabilitation on t�e property after NEZ
designafion et�uai to ar in excess of 3b°/a of the Base Va�ue of the properiy; and
c. Property is not in a tax-delinquent status when th� abatement application is
submitted.
2. For residential property purchased after NEZ designation, a homeowner �hail be
eligfble to apply tor a tax abafement by meeting the following:
a. Property is n�wly constructed or rehabilitated after t�e date of �inal NEZ
� designation; and
b. Praperty is owner-occupied and is th� primary residence of the hameovvner.
Hameawner shall provide proaf of ownership by a warranty deed, affidavit of
heirship, or a probated will, and shall show proof of primary resit�ence by
homestead exem�tion; and
c. For rehabilitated pr-operty, Eligible Rehabil�tatian cosfs on the property shall be
equal to or in excess of 3Q% of the Base Value of the property. The selEer or
owner shall pravide the City ir�formation to support rehabilitatian cosfs; and
d. Pra�erty is r�at in a tax-definquent status when th� abatemenf application is
submitted.; ant�
e. Property is in conformance with the Gity af Fort Worth Zoning Ordinance.
3. For investor owned single family pro�erty, an investor shall be eligible to apply for a
tax abatement by meeting the fiollawing;
a. Property is newly constr�cted or rehabilitated by the investar after NEZ
designation; and
b. For reha�ilitated praperty, Eligible Rehabilitation casts on the properfy shall be
equal to or in excess of 30% af the Base Va�ue of the praperty; and
c. Properiy is not in a tax-d�linquent status when the abatement application is
submitted; and
d. Property is in conformance with fhe City of Fort Worth Zoning Ordinanca.
�, ii�U�LiI-�AAAiLY ��V�LQ�IV��N� �ROJ�CiS LOCAiER IN A IV�
1. FuEI Abatement for 5 years.
�n order to �e e�igi�le for a prope�ty tax abatement, upon completion, a newly
constructed or reha�ailitated multi-�amily devalapment project in a NEZ must satisfy
the fol�owing:
At least twenty percent (20%) of the total uniis con$tructed ar rehabilitated shall
be affordable (as defined by the U. S. Department o� Housing and Urban
Development} f4 persons with incames at ar befow eighfy �ercent (SO%) of area
median incame based on famiiy size and such units shall be set aside for
persons at or below 80% af the median income as defned by tf�e U.S.
3
❑epartmenf of Housing and Urban Dev�lopment. City Council may waive or
reduce the 20% affa�dability requirement on a case-by-case basis; and
(a} For a mul�i-family develapmenf pro3ect construct�d after NEZ designation, fhe
project must pro�ide at least �ive (5) residential li�ing units �R have a
minimum Capital Investment of $200,a00; or
(b} For a rehabilitation project, the property must be rehabilitated after NEZ
designation. Eligible Rehabi[ifation costs an the property shal� be at least
30% of the Base Value of the praperky. Such Eligible Rehabiiitation costs
must come from t�e rehabilitation of at least five (5) residential living unifs. or
a minimum Capi#al {nvestment of $240,Q00,
2. 1%-100% Abatem�nt ofi Cify Ad Valorem taxes up to 10 years
If an applicant applies for a tax a�afement agreement with a term of mare than five
years, this sectiaR shall apply. �
Abatements far multi-family deveiopment projects for up to � 0 years are s�bject to
City Cour�cif approvai. The applicant may apply with t�e Housing Departme�t for
such abatement.
Years 1 throuah � of the fax Aba4emer�f Aareement
Multi-family prajects�shall be eligible fc�r 100°/fl abatement of City ad valorem taxes
far years one thraugh fiive o� the Tax Abatement Agreemeni upon the satisfacfion of
the fallowing:
At ieast twenty percenf �20%) af the tofal units constructed or rehabiiitatec� shal� be
affordable (as defined �y the U. S. Department of Ho�sing and Urban Developmenf}
ta persons with incames at ar �elow eighiy percent {80%) af area median income
basect on famify size and such units shal{ be set aside for persons at ar below 80°fa af
the median incom� as d�f9n�d by the L1.S. Depar�ment of Housing and Urban
Developmen#. City Council may waive or reduce the 20% affflrdability requiremenf
oR a cas�-by-case basis; and
a. For a multi-�amily development project constructed after NEZ clesigna#ion, the
proj�ct must provide at least fi�e (5) residenfial living units OR have a minimum
Capifal Invesiment of $200,000; or
b. For a rehabilifiation project, the property must be rehabi{itated af�er NEZ
desig�ation. Eligible Rehabilitation casts on the prop�rty shall be at least 30% of
the Base .Value of the proper�y. Such Eligible Rehabilita�ion casts must come
from the rehabiiitation af at least five (5) resicEential li�ing units or a minimum
Capitaf Investment of $204,400.
Years 6 t�rauah 70 of fhe Tax Abatemenf Aareerner�t
Multi-famiiy projects shall be eligible for a 1-100% abatement of City ad valarem
taxes for years six through te� af th� Tax Abatement Agreement upon the
satisfaction af the fallowing:
a. At least twenty percent (20°/a) of th� total units constructed or r�habilitated sha3f
be affordable {as defined by the U. 5. Depar�me�tt of Housing and Urban
De�elo�ment) to �ersons with i�comes at or belaw eighty percent (80%} o� area
4
median incame based an family siz� and such units shal[ be sef aside for
persons at or below 80% of the median income as defined by the U.S.
Department of Housing and lJr�an De�e�opment. City Council may waive or
reduce the 2i}% afFordability requirement on a case-by-case basis; and
1. F'or a multi-famify de�elopment project const�ucted aft�r NEZ designa#ion, the
project must provide at leasf fiv� (5) residential living units OR ha�e a
minimum Capital Irtv�stment of $200,000; or
2. For a rehabifi�ation project, the property musi be rehabilitafed after NEZ
designatian. Eligible Rehab�litatian costs an the property shall be at least
30% of the Base Value af th� praperty. Such Eligibfe Rehabilitatio� cosfs
must came from the rehabilitatior� of a# feast five {5) residenfial living �nits or
a minimum Capita� lnvestment of $20Q,000.
b. Any other terms as City Counci! of the City of Fort Worth deems a�prQpriate,
including, but not iimited to:
1. uti[ization of Fort Wort� companies for an agreed upon percentage of the tatal
costs for cfl�sfryction contracts;
2. utilization af certified minoriiy and women owned business enterprises for an
agreed upon percentage of the total casts for canstr�ctifln contracts;
3. properiy inspection;
4. ctimmit to hire an agreed upnn percentage of Fort Wor�h residents
5. commit to� hire an agreed upon percentage of Ceniraf City residents
6. landscaping; .
7. tenant sel�ctior� plans; and �
8. management plans.
C, COflRM�FdCI�o�., IN9USTRIpo� Af1lD COMIIflUf�ITY }��GILIilES �€V��OPMi�Ali
PROJ�CTS LOCATED IP! � N�Z,
1. �ul� Abatement for 5 years.
Ir� order to be eligibl� for a properfy fax abatement, a newEy cor�s�ructed or
rehabilitated commerciallindustriaf and community faci[ities devel�pment project in a
NEZ must satisfy the following:
a. A commercial, industrial or a community facilities d�Welopment praject
consiructed after. NEZ designation must have a minimum Capital In�estment of
$75,000; ar
b. For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible
Reha6ilitation casts on the praperty shall be at �east 30% of the Base Value af
t�e property, or $75,�00, wf�ich��er is greater.
2. 1%-10D% Abatement of City Ad Valarem taxes up to 10 years
�f an applicant applies for a tax abatement agreement with a term ofi more than fi��
years, this section shall appfy.
Abatem�nt agreem�nfs for a Commercial, (ndustrial and Community Facilifies
Development �rojec�s for up fo 10 yea�s are subject to Cify Councii appraval. Tne
5
a�plicant may app[y wi�h the Economic and Community Development ❑epartment �or
such abatement,
Years 1#hrQunh � of' the �ax Aba�ement Aareemenf
Comm�rcial, Industria! and Community Facili#ies De�elopmenf projecis shaff be
eiigible for 100°/ti abatement of City ad �alorem taxes for fhe first fi�e years of the
Tax Abatement Agreement upon fhe satisfacfian of the foElawing: ,
a. A commercial, indtastrial or a communi�y facilities development praject
constructet! af�er NEZ c�esigr�ation must ha�e a minimum Capital Investment af
$75,�QD; or
b. For a rehabilifation praject, it must be rehabilitated after NEZ designation. Eligible
Rei�a�ilitation costs on the property shall be at least 30°l0 of tF�e Base Valu� of
the property, or $75,OOD, whichever is greafer.
Years fi t�rnuah 7� of the Tax Aba#ement �areemenf
Commerciai, fndustrial and Communi�y Facilifies De�eloprneni projects shall be
eligibfe for 1%-� DO% abatement of Cify ad valorem taxes for years six through ten af
�he Tax Abatement Agreement upon the satisfactian af the fo[lowing:
a. A commercial, in�ustria[ or a community facilities development project
constructed after NEZ designation must f�ave a mir�imum Capital Ir��estment af
$7�,000 and must meet the reauirements o� su�section (c} below ; or
b. F�r a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible
Rehabilitation costs on the property shalE b� at least 30% of the Base Value of
fhe prflperty, or $75,000, whichever is greafer and meet fhe requiremen#s of
s�absectEon {c) beiow. �
c. Any other terms as City Council af the City of Fort Wor�h deems appropriate,
inc�uding, but Rot limited to:
1. utilizaf'ion of �ort Worth cornpanies for an agr��d upon perc�ntage of the total
costs for cor�struction contracts;
2. �tilizatior� ofi certifi�d minority and women awned b�siness enferprises for an
agreed upon percentage of the total costs for construction contracts;
3. eommit to hire an agreed upon percentage of Fort Worth residents;
4. commit to hir� an agreed u}�on� percentage af Central City residents; artd
5. landscaping.
D. MIX€DoUS� ��V��O�lUi�N� �ROJ�CTS LQCAY�D I�! A RlEZ
1. Full Abai�ment for 5 years.
In order to be eligible for a proper#y tax abaterrtent, upan comp�etion, a newly
canstru�cted or rehabiiitated mixed-use deveiopment project in a NEZ must satisfy fhe
fnllowing:
a. Resideniial uses in fihe project consfiitute 20 percent or more of the total Gross
Floor Area of the projecf; and
b. OfFice, eating and enfertainment, andlor retail sales and service uses in the
praject canstitute 10 percent or more of the tota[ Gross Floor Area of fhe projecf;
and
0
(1 } A mixed-use development project co�structed after NEZ designatior� must
have a minimum Capital ln�estmenf of $2�0,000; or
(2) For a rehabilitation project, it must be rehabilitated. after NEZ designation.
E�igible R�habil�tation cos#s on the praperty shall ba .at least 30% of tne Base
Value of �he p�oper#y, or $200,Q00, whichever is greater.
2. 1%-100% Abatement of City Ad Valorem taxes up #0 10 years
�f an applicant appiies for a tax abatement ag�-eement with a term af mor� �F�an five
years, th�s sect�on shall apply.
Abatements agreements for a Mixed Use Development projec#s for u� to 10 years
are sUbject to City Caur�cif appro�af, The applicant may apply with the Economic and
Comm�nity Development Departmenf for such aba�ement.
Years 1 t�rouqh 5 of ihe Tax Abatemeni Aqreement
Mixed Use De�efopmen# projects shall be eligible for 100% abatemenf af City ad
vaiorem taxes for �he first five years of the Tax Abatement Agresment upon the
sa#isfaction of the fo�lowing:
a. Residential uses in the project canstitute 20 percent Qr more of the tatal Gross
Fioor Area of the project; and
b. Office, eating and enfertainment, and/ar refail sales and sarvice uses in the
project constitute �0 percent or more of the tota! Gross Flaor Area of the proj�ct;
and -
c. A Rew mixed-use development pro3ect constructed after NEZ designa#ion must
have a minimum Capital Investment af $200,OOQ; or for a rehabilitation projeef, it
rrm�st be rehabilitated after NEZ designation. E�igible Rehabiiitation costs on the
property shall be at least 30% af the Base Va[ue o� the property, or $20Q,QD0,
whiche�er is greater.
Years 6 ihrauah 10 of fihe Tax �►ba�ement Aqreement
Mixed Use Development projects shall be eligible far 1�100% aba#ement af City ad
valarem tax�s for years six through t�n of the Tax A�atement Agreement upon the
sat�sfaction of the 'following:
a. R�sidentia! uses in the project constitu�e 20 perc�nf or more of #he tofal Grass
Floor Area of t�e �rajecf; and
b. Office, eating and enter�ainment, andlor retaii sales and service uses in the
project constitute 10 percent or more of the to�al Gross �loor Area o� the project;
c. A new mixed-use development project canstructed after N�Z desigr�atian must
ha�� a minimum Capital lnvestment af $200,000; or for a rehabiiiia#ion prnject, i�
must be rehabifitated after N�Z designatinn. Eligible Rehabilitation casts on the
property shal! be at least 3Q% of the Base Value af the pra}�erty, or $204,000,
whiche�er is greater; and �
d. Any other terms as City Cour�cil of the City of Fort Worth deerns approprEate,
including, but not limited #o:
1. util�zatian of Fort Worth corr�panies for an agreed upon percentage of the
total costs far construction contracts;
7
2. utilization of certified minority and women owned business enierprESEs far
an agr�ed upon percentage nf fhe totaf costs for cor�struction contracts;
3, property ir�spectian;
4, commit to hire an agreed upor� percentage of Fork Worth residents
�. commit to hire an agreed upon percentage of Central City r�sidents
6. landscaping;
7. tenant selection pfans; and
8. mar�agemenf pians.
�.
A�AT�iV1�Ni CUID�LIlV�S
1. If a NEZ is locafed
on a case-�y-case
to eligible projects.
Sectian f l l.
in a Tax Increment Financin� District, City Council will cEetermine
basis if the tax abatement incentives in Section lil wiif be ofF�r�d
Eligible projects must meet afl eligibility requiremenfs specified in
2. In order to be eligible to apply for a fax abatemen#, fF�e property ow�erldeveloper
must: �
a. Nat be delinque�t i� paying property taxes for any property owned
ownerldevelaper ; and
b. Not have any City of For# Worth liens filed against any property awn�d
app�icant property own�rldeveloper. "�iens" include, but are not limited ta
liens, demolition [iens, baard-up/open structure liens and paving liens.
3. Properties under a cantract for deed are r�ot eligib[e for tax abatement.
by the
by the
, weed
4. Once a NEZ praperky owner flf a residential property (inclutfing multi-family) in the
NEZ satisfies the criteria set forth in Sections 11LA, E.1. and E.2, and applies for an
abatement, a properly owner must enter inta a tax abatement agreement with the
CEty of For� Worth. Ti�e tax abafement agreement shall automaficafly terminate if the
property subject ta the tax abatement agreement fs in violation of the City of Fort
Worth's Minimum Bui[ding Standards Gode and the own�r is convicted of such
�ialation.
5. A tax abatement granted under the criieria set fflrth in Sectian III, can only be
gfanted onc� for a property in a NEZ for a maximum term of as specified in the
agreement. If a proper�y on which tax is being abated is sold, the Cifiy will assign the
#ax abatement agreemenf far the remaining term once tha new awner submits an
appGcation.
6. A property awn.erlcfeveloper of a multi�amily developrnent, commercia[, industrial,
community facilities and mixed-use deveiapment praject in the NEZ who desires a
tax.abatement unc�er Sect�ans I�I.B, C or D must:
a. 5atisfy the criteria set torth in Sections III.B, C or D, as appficable, and Sections
III.E.1 E.2; and E3. and
b. File an application with the Hausing Department ar the Economic and
Comm�nity Developmenf Department, as ap�licable; and
F:3
c. The property owner must enter into a tax abatemer�t agreement with the City of
Fort Worth. In adr�ition fo the other ferms of agre�ment, fhe tax abatement
agreement shaH provide that the agreement shall automatically ferminate if the
owner receives one con�iction of a violation of the City of Fort Worth's Minimum
Building Standards CQde regarding #ha proper�y sUbject to the abatement
agreement during the term of the tax abatement agreement; and
d. I� a�roperty in the NEZ on which tax is being a�ated is sold, the new owner
may enter inta a tax abatement agreement on ti�e property for the remaining
term.
�, AP�PLICAiION F��
1, T�e appfication fee for reside�tial tax abatem�rtts gaverned under Section IIl.A is
$2�.
2. The application fee for multi-famify, commercial, industrial, commuriify facil�ties and
mixed-use development projects go�erned under Sections I�f.B, C.1 and D.1, is or�e-
half af ane percent (0.5%} af the proposed pro�ect's Capital lnvestment, not to
exceed $1,0�0. The applicatian fee will be refunded upon issuance of certificafe of
�#inai oceupancy and once the property owner enters into a tax abatement agre�ment
with the C�ty. Otherwise, th� Application Fee shal! not be credited or ref.�nded to any
party for any reason.
IV, ��� WANERS
A. ELIGI�L� R�CIC'I�fViSf��Q��RTIES
1. ]n order to be eligib[e to apply for fee waivers, the �roperfy owner/�eveloper must
a. Not be delinc�uent in paying property taxes far any property own�d by the
owneNdeveloper or applicaht; and
b. Not ha�e any City li�ns fiied against any praperty owned by tl�e applicant property
ownerldeveloper, including but not limited to, weec! fiens, demoliiion liens, board-
up/open sfructure liens and paving iiens.
2. Praper�ies under a contract for de�d are nat efigible for cEevelopment fes wai�ers.
3. ln order for De�elopment Fees andlar Im�act �'ees to be wai�ed for new construction
ar rehabilitation projects locat�d in #he NEZ, a property awner mus# submit an
application to the City.
Aanroval of the applicatiion and waiver of �he i`ees shall' not be deemed to he
approval of anv asneci of the oroiect. �e�ore construction, fhe aonlicant musi
ensure that the praiec# is located in the correct zoninq district.
�. DEVELOPfViI�NT FE1�S
Once tha Ap�lication for N�Z Incentives has been approved by the City, tF�� following
fees for services performed by the C�ty of Fart Worth far projects in the NEZ are waived
for new construction projects ar rehabilitafion projects that expend at least 30% of the
Base Value af the property an Eligible Rehabilftation costs:
1. Aq bu�lding parmit relatad fees (including Plans Re�iew and Insp�ctions}
2. Pfat application fee (ind�ding concept plan, preliminary plat, finaf plat, shor� f��-m
replat}
3. Board of Adjustment application fee
4. Demolition fee
5. Structure moving fee
6. Community Facilities Agreement (CFA} application fee
7. Zoning application fee
8. Street and utility easemen# vacation application f�e
OtF�er develapment relate� fees nof specified above will be considered for appro�al by
City Councif on a case-by-case basis.
C. l�iP,�,Ci F�E
1. Singfe farrtily and multi-family residential development projects in the NEZ.
Automatic 100% waiver of water and wastewater impact fees will be ap��ied. .
2. Commercia�, industrial, mixed-use, or community facifity development prajects in the
N EZ.
�. Al�tOrri�tlC 100% wair�er of water and wastewater im�act fees up fo $�5,000 or
equivaient ta twa 6-inch meters for each commercial, industrial, mixed-use or
community facility develapment project.
b. If the pro�ect requests an impact fee wai�er exceeding $55,OOQ or requesting a
wai�er for larger an�lor more than two B-inch rrieter, then City Council appraval is
required. Applicant may requesfi the additiona� amount of impaCt fee waiver
thraugh th� Housing Department.
V. RE���►S� Ql� CIiY LI��fS
The following Ci�jr liens may be released for eligible praperties or projects in a NEZ:
A. 1Ad��D �I�NS
The follawing are eiigible to apply for release of weed li�ns:
1. Single u�it owners performmg rehabilitation on their prflperties,
2. Bui[ders or de�elopers constructing new homes on vacant lots.
3. Owners performi�g rehabilitation on mu[ti-family, commercial, industrial, mixed-use,
ar community facility properties. �
4. Dev�lop�rs constructing new mu[ti�family, cnmmercial, industria[, mix�d-�se or
community facility development projects.
�. DEIVI�L1Tf�N Ll�f�S
10
Builders or developers developing ar rehabilitating a praperty are eEigible �o apply for
release of demalition liens far up to $3Q,000. Release of demolition liens in excess of
$30,OpQ is subject to Ci#y Council approval.
C. B�ARD-UPI�P�N SiRl1CYUR� LIENS
The following are �ligible fa apply for release of baard-uplopen structure liens:
9. Single unit owners perfarming rehabilitation an their properties.
2. �� Builciers or de�efopers constructing new single family homes on �acant lots.
3. Owr�ars perfarming reha�iiitatian on muf#i-family, commercial, ind�strial, mixed-use,
or cammunity fiacility pro�erties.
4. Developers constructing muf#i-family, commercial, inc�ustrial, mixed-use, or
community facility projects. .
D. P�4VI�IC LI�f�S
The following are efigible tv appEy for release o# pa�ing liens:
1. Single unit awners performing rehabifitatiort on t�eir properties.
2. Builders or developers const�ucting new homes on vaea�# Eots.
3. � Owners p�rforming rehabilitatior� on multi-family, commercial, inclustrial, mixed-use,
or community facility properti�s.
4. Developers constrt�cting mulfi-family, commefcial, indus�rial, mixed-use, or
community facifity projects.
E. E�1GI�LE RECIP[l�N€i51PRA�ERiI��
�. �r� order to be eligible to appfy for release ofi City liens, fhe pro}�ert}r owner/dev�foper:
a. must not �e delir�quent in paying property taxes for any properly owned by
the awnerldeveloper �.
, b. must not have been subject fo a Building 5tandards Commission's �rder of
Demoliti�n where the property was demolished within the last five {�} years; anc�
c. must not ha�e any City of Fort Worth liens filed against ar�y other property owmed
by tF�e applicani property ownerldevelaper. "Liens" includes, but is not fimited to,
weed liens, �emolifion liens, board-uplopen structure liens and paving liens.
2, Properties under a contract for deed are not eligible for release af City liens.
VL �ROCEDUR�LSiEPS
A.. APpLICAiI�N SUBNI[SSlOiV
The appficant for NEZ incentives und�r Seciions IfI.A, B, C. D., IV, and V must
complete and submit a City of Fori Worth "Application fior NEZ Incentives" and pay
the appropriate applicatEan fee to the Housing Department or the �conomic and
Cammunify Development Departmenf, as applicable.
11
2. The applicant for ir�centives under 5ectians il[.C.2 and �.2 must a�so compleie and �
submit a Ci�iy of For� Worth "Application for Tax A�atement" and pay #he appropriate
application 'fee fo the Economic and Community Developmer�t Department. The
appiica#ion fee, review, evaluatio� and approval wifl be governed by City of Fort
Warth Tax Abatement Policy 5tatement for Qualifying De�efo�ment Projects.
B. C�Ri[�IC�i'IONS ��R AP��ICr4ilONS �ND�,R S�CiIOfdS IIl.i4, �, C.1, D."I, �V,
AW D V
The Housir�g Department wi[I review the applicat�an for accuracy and
compleieness. Once cQmp�ete, Housing Department will certify eligibility of the
appfication based on the criferia set for�h in Secf[on III. A, B, C.�1, D.9, IV, and V af
this po�icy, as appiicable. Once an applicatian is cer�ifii�d, fF�e Housing Department
will inform appropriat� d�partrne�ts administ�ring the incenti�es about the certified
application. An orientatian mee#ing wii� City ctepartments and the applicant may be
sci�eduled. Ti�e de}�artments include:
a. Housing Department: property tax abatement for residential properties and multi-
famify develapment p�ojec�s, refease afi City liens.
b. Economic and Communifiy De�elopment Depar�ment: praperty tax abatement for
cammercial,
industrial, cammunity facilities or mixed-use development prnjects.
c, Development Depar�meni: deveiopment fee waivers.
d. Water Department: impact fee wai�ers.
e. Ofher appropriate departments, if ap�[ica6le.
2. Once D��elopmeni Departmer�t, Water Department, Eco�omic and CommunEty
Deve[opmenf �epartment, andlor other apprapriate department receive a c�rtified
appfication from the Housing Department, each depar�men�loffc� shall fij[ aut a
"Verification of NEZ Incentives for Certifiied N�Z Encentives A}aplicatinn" and return it
ta the Housing Depar�ment for record k�eping and tracking.
C. �►���ICJ�TION R�V��W A[VD �1lALUATION F'O� A�P�,IGl�iIONS
�. Property Tax Abatemenf for Resider�tia[ Pro�erties and Multi-famiiy Development
Projects � -
a. For a completad and certified application for no more than five years of tax
abat�ment, with Council approval, the City Manager shall execute a taX
abatement agreement w�th t�e applicant.
b. For a completed and certified mulfi-family developme�t projecf app�ication for
mare than five years of tax abat�menf:
(1) The Housing Department will evalua#e a completed and certified application
baseci on:
(a} The� project's increas� i� fhe value of the tax bas�.
(b) Costs fo the Ciiy (such as infrastructure participatian, etc.).
(c) Percent of construcfion contracfs committed to:
{i} Fort Worth based firms, and
(ii} Minority and 11Vomen Owned Business Enferprises (MfWBEs}.
(d) Other items wF�ich may be negotiated by the City and th� applicant.
'E 2
(2) Consideration by Council Commit#ee.
Based upon �he outcome ot the svaluation, Housing Department rriay present
fhe application to the City Council's Economic Development Comm[ttee.
Should the Hausing Department present th� app[icafian io the Econamic
Develapment Cammittee, the Cammitt�� will consider fhe application at an
open meeting. The Committee may:
(a) Apprave the application. StafF wifl #her� incorporate ti�e application into a
tax abatement agreement whic�t will be sent f� the City Council wi�h the
Gommittee's recammendation to ap�rove tha agreement; ar
(b) Request modifications to �he application. Housing Deparkment staff will
discuss the sugg�sted modifications with the applicant and th�n, if th�
requested modifications are made, resubmit tha madified application ta
the Cammittee for cansideration; or
(c) Deny #�e application. The applicant may ap}�eal the Commitfee's finding
by requesting the Ciiy Councii to: (a) disregard tf�e Committee`s finding
and (b) instruct city siaff to incorparate fhe ap�lication into a tax
abatemeni agr��ment for future cansidera�ion by the City Council.
(3) Consideration by the City Council
The City Council retains sole authority to approve or deny any tax abatem�nt
agreement and is under na obiigation to approve any tax abatement
applicatio� or tax abatement agreeme�t. TF�e City of Fart Warth is under no
abligation to prov�de fax abatement in any.amount or �afue to any applicant.
c, Effective Date fvr Approve� Agreements
All tax abatements approved by the City Council wifl became eff�ctive an
January � af �he year following the year in which a Ce�tificate of Occupancy (CO)
is issued for the qualEfying c�eveloprnent project (unless otherwise specified in the
tax abafement agreement). llnless ofherwise specified ir� the agreem�nt, taxes
levied during the constn�ction of the project shall b� due and payable.
2. Property Tax Abatement for Commercia�, 1nc�ustrial, Community Facilities, and
Mixed-Use Development Projects
a. Far a completed and certified applicatian for no more ti�an five y�ars of tax
aba#ement, with Cauncil approva�, the City Manager sha[I execute a tax
abatement agreem�nt wit� the applicant.
b. For a completed and cer�ifed app�ication for mare than five years of #ax
abatement:
(1) The Econamic and Cammunity Development Department wi�� evaluate a
completed and certified application based an:
(a) The project's i�crease in the value of the tax base.
(b) Costs fo the City (such as infrast�ucture parkicipatian, etc.).
{c) Percent af cons#ruction cantracfs committed io:
(i) For� Worth based firms, and
(ii} Minority a�d Wamen owned Business Enferprises (MIWBEs).
(d) Other items which may be negotiated by the City and the applEcant.
�3
(2) Consideration by Council Committee
Based upon the outcame ofi fhe e�aluation, the Ecanomic and Communify
Development �epar�m�nt may pr�s�nt t�e application ta the City Cauncil's
Economic Development Committee. Should the Eeonomic and Cammunity
Devela�ment �epar�ment present the applieation to the �conomic
Develapmenf Committee, the Committee will conside� the application at an
open meeting. T�e Commitiee may:
(a) Approve the application. Staff will tFten incorporate the applicatian inta a
�ax abatement agreement which wilf be senf to the Ci�y Counci[ wit� fhe
Committee's recommendation to approve the agreement; or
(b} Request modificatior�s ta #he application. Ecanomic and Cammunity
�eve�opment Department staff will discUss the s�ggested modifications
with tne applicant and then, if the requested modifications are made,
resubmit the modified appiication io the Committee for considerafion; or
(c} Deny the appfication. The applicanf -may appeal the Committee's finding
by requesting the City Council to: (a) disregard the Cammitt�e's finding
and (b) instruct city staff to incorporate the appl�cation info a tax
abatement agreement for future cansideratiort by the City Caunci[.
(3} Consideration by th� City Council
The City Council retains sole author�iy to approve ar deny any tax abatement
agre�ment and i5 under no ol�Eigation ta approve any tax a�atemen�
application or tax ahatement agreement. The City af Fort Warth is under no
obligation to pro�ide tax a�atement in any amount or value to any applicant.
c. Effective Date for Appro�ed Agreemer�#s
All tax abatements approved by the City Councii wi�l become e�fecti�e on
January 1 of the year folfowing the year in which a Gertificaie of Occupa�cy (CO)
is issued for the q�alifiying develapmen# praject (un[ess o#herwise specified in th�e
#ax abatement agreement}. Unless otherw�se specified in fihe agreement, taxes
levied during th� construction of the prajEct shall be due and payable.
3. Development Fee Waivers
a. For certifiied appiications of development fee wai�ers that do not reguire. �ouncil
approval, the Develapment Department wil! review the certified applicant's
appGcation and graht apprapriate incentives.
b. For certified applications of dev�lopment fee waivers that require Councif
approval, City staff wifl review the certified applican#'s applicatian and make
appropriate recommendatians to the City Councii.
4. Impact Fee Waiver
a. For certi�ed applicatians of impact fee waivers fhat d� nat req�ire Council
approvaf, the Water Department will review the cer�ified applicant's applicatian
and grant appropriate incentives.
�4
b. For cer�ified ap�fications of impact fee waivers tl�af require Council appro�ai, the
Water Oepartment wilE review the certified applicant's application and make
appropriate tecommendafions to the Cify Cauncil.
5. Release �f City Liens
For cer�ified applications of release af City liens, the Housing Departmenf will release
tl�e app�opriate liens.
VII. O fH�R RU��S P�RiAlNIN� TD �R���Rf`Y' r�4X A�Ai�E�UI�1�T'
�. I��CAP�U��
If the terms ot the tax abatement agreement are not met, the City Council has fhe right to
cancal or amend the abatement agreement. In ihe event �f cance[la#i��, the recapture af
abated taxes shal] be limited.to the year(s) in which �he defau�t occurred or continued.
�. IP1S��CTION AN� �IN�►�dCIAL 1IERl�ICA`f�ION �OR MU�TIn�'AIV�I�Y, C�11�lIfl��CIAV
IN�U�YRIA�, COMM[JNIiY �ACI�IiI�S r4W9 �VIIX�D-U5E DEV�LOPM�fV�
PFiDJ�CTS
TY�e terms of the agreement shall include the City af Fart Warth's right to: (1) review and
verify the applicant's financiai statements in each year during the fif� of fhe agreement
prior to granting a tax abatement in any given year, (2) conduct an an site inspection ofi
the project in� each y�ar during the lif� ofi th� abatement fo �erify complianee with th�
terms of tf�e tax abatement agreement.
C. �V�e�UEl�IOhl �OR IVIULTId�A[VII�Y, C�IVINV�RCIA�1 [N�USTRIAL, COMflIIURlI�Y
FACiLIi[FS AND iiIIfXFD-U�� D��l�LOPM��i P�QJ�CTS
Upon. completion af construction of the faciiities, the City shall no less t�tan annualEy
evaluate each project receiving abatement to insure compliance with the terms af the
agreement. Any incidents of nan-campliance will b� reparted to the City Council.
Dn or befior� �ebruary 1st of e�ery year during the life of �he agreemenf, any
individual ar entity receiving a iax a6afemenf from 4he City ofi �ori lAlvrth shall
provide in�ormation and docurr�entation vsrhich defaifs the praperty owner's
compliance with the terms of the respective agreemen# and shal! certify that �he
owner is in compliance with each applicable �erm o� fihe agreemen�. �ailure fo
r�parf fhis informa�Eion and to provide tihe required certification by fhe above
dead[ine shall resul� in cancellation af agreemen� and any faxes abafed in ihe
prior year being due and paya�le.
D. EFF�CT OF SAL�, A55[GMM�N� OR ��AS� O� �ROP�RTY
If a property in the NEZ an which tax is �eing abated is sold, the new owner may enter
in�o a tax abatemeRt agreement on the properky for ihe remaining term. Any sale,
assignmenf or lease af the properly which is not permitted in the tax abatement
agr�ement results in canceflation of the agreement ancE recapfiure af any faxes abated
after the date an which an unspecified assignment occutred.
15
vrn. OThiER INCI�N��V�S
A. Plan reviews of propased development �rojects in fhe NEZ will be expedite� by the
Devefopment Depar�ment.
�. The City Council may add the following inceniives to a NEZ in the Resoiution adopting
the NEZ:
1. Municipa[ sales tax refund
2. Homebuyers assistance
3. Gap financing
4. Land assembly
5. Conveyance af tax fareclosure properties
fi. infrastruct�re im�rovements
7. Support for Low Incom� Housing Tax Credit {LIHTC) appfications
8. Land use incentives and zoninglbt�iiding code exempfinns, e,g., mixed-use, density
bonus, parking exemptian
9. Tax Increment �inancing (T[F)
90. Public Impravement �is�rict (PID}
11. Tax-exempi bond financing
12. New Model Blocks
13. Loan guarantees
'14. Equity investments
'!5. Other incenti�es thaf will effectuate th� intent and purpas�s of NEZ.
�
Exhibit B
3101 Eastcrest Court Lot 6, Block 2 Eastcrest Addition
Exhibit C
Project Desc�ript�ian
Single Family Residence
90% Brick Veneer
1500-1900 sq�are feet �
3 Bedrooms/2 Baths
Tv�o car garages .
Arched Windows at Front of House �
Front Yard Landscaped
Microwaue w�th built-in Vent-A-Hoad
Wood Buming Fire Piace
Built-in Secu�ity System
Computer Area with CPU & Pri�nter with a dedicated teEephone line
Vaulted Ceiling in Master Bedroom and Living Raom
Frer�ch Doors
Sepa�ate TublShower in Master Bathroom
Garden Tu� in Mater Bathroam
5
�'QRT�ORTH �
CIT�' OF F�RT WORTH
�TEIGHBORH�OD EI�POWE�IEI�I� ZO�TE (NEZ) PR�GRAM
;,_ �❑ . A list of:all•pxopertres owned by the applicant i� Fart Worth
[� Application fee of $2.S.QD (for tax abat�ment applicattons anly)
❑ Proaf of ownership, such as a warranty deed, affidavit of heirship, or a probated wilI OR
e�idence oF site control, such as opt�on to buy �
❑ Title abstract of th� property (optional} '
For R�habilitation Pro�ects �nly:
❑ �or a project in the planning stage, please submit a comt�teted set of Rehabilitatian
. CRemod�l� Plan and a list of eli�ible rehabilitation costs*: (for appZica�ians of tag •�
al�atements and devela�ment fee vvaive�rs for rehab grojecfa oz�ly)
❑ Once a prnject is compleied, please subrnit proof of the eligi�Ie rehabzlztatian co�ts'� such
as invaices, cantracts, or receipts. {for applications of tax abatamen�s onlp�)
�` ��igible rehabilitation includes only phqsical improvements to real groperty. it does NOT include personal
property such as furniture, appliances, equipment, and/or supplies, Total eligible rehabilitation casts sha11 equal
#v or exceed 30°l0 of the Tarrant Cou�afy Appraisal. District {TAD) appraised value of the struciure during the
yea� rehahiiitation occuzs.
PROJECT C�RTIFICATTON APPLYCAT�ON
FORM B FOR I1�VESTOR OW�RS {SIl`dGLE FANII�..Y 4NLY}
I. APPLiCAT�ON CHECK LIST
Please submit the following documez�#ation �rit1� each property requ�sted:
� A cornpieted'applioatio:n,:fo�rii �� �`'r�� �� •
II. Applicant i AGENT YNF�RMATION � �
�, Applicant:
3. Address:
4. Pi�one no.:
6. Etn�il;
7. Agent (if any�
�: Address:
9. Phone no.:
lI. Einai�:
pA y���1_��(Jjf +� 2. g�Co�p''j'tact Person: �%/��� r �s� $�
�T i ►R R �T/Y''^ 'JS� ��A1L�'�-' -�--��G�T 'tJN ��! � C�+f� ��'�O
d t� �a�
Stree� ity. State Zip �
�!� � �i�-7'�l� �. Fax No.: �!?��'1 ?�� —
��/�." �ifYo�- lF�bi�J' Z f ��F ��
Street
Application Na. ��� � � f u �
Crty Stat� Zig
10. Fax No.:
�
�
If you meed furfher infor�ati�n ar clarafxcation, please c��tact Chx�n-I Lu at {81i) �7X-73�1 ox
]Bea Cura at {81i} 8i�-8036.
�
�"ORT �ORTH � � �
�
YII. PROPERTY ELIG�BILITY � . _ . ^ —.�. .. � � �
1. Please list dovc�n the addresses and legaI descriptions of the propex-tiy where yoU are applyin�
for NEZ inc�ntives and other proper�ies yoa own in Fort Wartli. Attach metes and bounds
descrip�xon if no address or Iegal descripiian is available.
� � . _
Table 1 Property Ownersh�ip
Address Zip Legal Descriptian �
�°�e Subdivisian Lnt No. � Sloel� No. �
(�'roj ect Location) � -- •
- ����' �� � ' .
-- ..._ �,�����������, �,� ��
� — --- � — 1
a — �
(Please attac� additional she�ts af paper as needed.} .
2. For eaeh properties lis�ed in Table 1, piease eheck the boxes below to inclicate ii:
� there are taxes due; or j�% � �
� there are City Iiens; ar �,/ �
• you have been sub3ect to a Buiiding Standaxds Commis�ion's Order of Demolition vcrhere the
property was demolished within the last five years. �J �
Table � Properly Taaces and City Liens
. Address Praper#y I City Liens on Praperty �
.�.- Ta�ceS �- Weed � Baard-np/Open .. Demalitfon- I Paving Ordar of .
� Due Liens °Stucturc Liens � Liens Liens Demol4Eio�t
� ❑ ❑- ❑ ❑ ❑ ❑
- . . �0.". .0�.. . -�� , . � .Q , ." . ❑ ❑
. . .a - ❑.. .�❑. . ❑ -
- . ❑ ❑
� ❑ ��❑� - ❑ ❑ � o ❑ �
I , . o ❑ -, ❑ ❑ ❑ o- I
� � . � -� i �- . :, , � ; � -�
-. ❑- - �0 - .: -.: ��.,_, .,._� � ❑- ❑
I ❑ ❑ - ❑ -- ❑ ❑ ' ❑
(Please attach additianal sheets of pap�r as needed.)
� 3. Do you o�vn other properties �nder other naznes? ❑ Yes �V'o
Zf Yes, please speciiy
4. Does the proposed development cnnforrn with Cfty of Fort Worth Zoning? �[] Yes ❑ No
__ �. Is this property under a contract for deed? ❑ Yes �No
� --. .
2
FQRT �1VORTH
6. Has the construct�on on fhe property been completed or is it in the planning stage? What
type of consiruction?
❑ Conshuct�on Corrinleted n Under Conshuctian �In Plannin� Sfa�e
❑ New Constru�tion [] Rehah ❑ New Canstruction ❑ Rehab �New Consiruction ❑ Rehab
'�, Tf the construc#aon on the praperty has bee�x completed when this applicafion is snbnaitted,
vvhen was the work done?
8. . If it is a rehab prapet°ty, daes {or will) the rehabilitation work* done on �he praperty eqnal
to at least 30% af �he Tarrant Cat�nty Appraisal District (TAD) assessed value of �he
structure during tihe year rehabilitation {remodeled) accurred? ❑ YEs ❑ Na
*Oz��y physical improvements to real property is eIigihle. DO NOT include personal property
such as furniture, appliances, equiprncnt; andlox supp�ies.
� � - � -- " . �
N. , .. 7NEENTIVES .
1. What-i�centives are you applying for? .
� Municinal Pronertv Tax Abatements
Development Fee Waivers
� All building permit related fees (in�Iuding Plans Review and Inspections}
How much is your total develapment costs? $ �r ��'�,.�� �
How much is the total squaxe footag� of your project7 7�����, �quaxe feet
�__�
� P1at application fee (inaluding concept plan, prelin:�inary plat, final plat, short form�replat)
� Soard of Adjustmen� applica#ion fee
❑ Damolition fee
0 Strucfure moving f�e
� Cammunity, Facilities Agreement (CFA) a�Zplication �fee.. -. , A
� �oning app�zcation fee� � � . -
� Street and urility �asem.ent
Irn�act F�e Waivers
� Impact £ee waiver ��
Meter Size ��� Haw many me�ers? �� �
Release of Cifv Liens
❑ Weed liens
❑ Board up/open struc�ure Iiens
❑ Dernolii�on liens
❑ Paving Iiens
��..
3
�'O1�T �VORTH
V. ACKNQWLEDGMENTS � — � +
I hereby ceriify that the znformation proyided is true and accurat� to tI�e best of my know7edge, I hereby
acknowledge ihat I have received a capy ofNEZ Basic Inceniives, w�-iich governs the granting of �ax
abaternents, fee vs�aivers and 'release of City liens, and ihat any VIOLATION of the t�rms of the N�Z
Basic Incentives or MISREPRESENTATION shaIl constitute grounds �or rejectian of an applica�ian or
terxninatian of incentives at the discretion of the City.
I understand that the approval of fee waivexs and other incentives shail not be deerned to be approval of
any aspect of the project. I understand that I arn responsible in ol��aining requrred perrni�s and
inspec�ions frorn the City and in ensuring the pro3ect is located in the conrect zoning c�istrict.
I agree to pravi�e any additional infozmaiion for detezmining eligibiIity as rec�uested by the City,
.,�"� ���t � C. ���.��;� ,�,�.. �� �� R'%Z� ��>
(TYPED NAME) (AU ORTZED S�GNATURE) ` A�
i� )
�'le��ti �ks:�i�, Fa� a�- cm;�il y����,�-.����lic.�rio�� io: ^
(�it,y e�F` E+or� �Vir�'��i, }�Ir>i��inry 1}�p�ru�ent
1�+)Q Thr��c�cryi���-�on �trec�. T�,rt V4'ar#h, �I"exas 7�l�12
(�l7� 87i,73'?8
. �.�C(�;ci.f�rri-����,rti�.tx.us
, • o.
Electronic ver�ion ofthis form zs available by request. Pleasa call $1?-871-7381 to request a copy.
For Office Use Only —' � �- �- '
.. �Applicahon No., SS(,'.-�a � Tr� yc�hich NEZ7 �j{�,p �j� �on%rm with Zorun ?
g ��.Yes= []No
- TAD ID � = Con�ract for deed? .❑ yes _❑� No Type? �,New constrvct�on ❑ Rehab
Canstruction coFnpletion date? ❑ Before NEZ [�.After NEZ Ownership �j yes [f No
Rehab at or higher than 30°/a? ❑ Yes ❑ No Canszstent with the NEZ p1an7 � Yes ❑ No
Tax cu3rrent on this property? � y�s ❑ No Ta�c cvrreni an other properties� �] Yes � N �
City liens on this praperty?
+ We�d liens
❑ Ye� � No
o Board-up/open structure liens ❑ Yes � No
.� Demolition liens ❑ yes 0 No
o Paving liens ❑ Y�s � No
� Order of demoIition ❑ Y�s [�' No
Certi�ed? ❑ Yes ❑ No Certified by
If not certi�ed, reasan
Referred to: ❑Economic Developznent
Revised August 23, 20a1
4
City liens on other properties?
o Weed liens ❑ Yes
o Board-up/npen struci�re liens [� Yes
� Dex�olition liens ❑ Yes
o Paving ii�ns ❑ Yes
� Order of demolition ❑ Yes
Date certi�cation issued? �(����� �
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❑Housing '�?�(]Development [�,VVater ❑Code �TPW
City of �Fort Worth, Texas
Ma�or and Cou�cil Con�munica��or�
IJATE
gi� aro2
' SUBJ�CT
REF�R�I�CE NllMBER LOG NAM� PAG�
�n� g�3� �� 05NEZ l 1 ot 3
AUTHORIZATION TO ENTER iNT4 TAX ABATEMENT AGREEMENTS W1TH THE
�ORT WORTH H�USING �1NANCE CORPORATfON FOR THE DEWELOPMENT OF
S{XTEEN SINGLE-FAMILY HOMES FOR THE EASTCREST SlJBD1V15lON LOCATED
IN THE STOP SIX NEIGHBORHOO� EMPOWERM�NT ZONE � .
RECOMMENDATION:
It is recommended that the City Council:
Approve the Forfi Wor�h Housing Finance Corporation (�V�IHFC) application for Municipal Proper�y
Tax Abatement for the Eastcrest Subd9vis�on; and
2. Find that the staiements set farth in th� reci#als of th� at�ached Tax Abatement Agreements (the
Agreem�nts} with FWHFC are true and correct; and �
3. Authorize #he City Manager to enfer inta tax abatement agreern�nts with FWHFC for the dev�lapment
of sixteen sing{e-famiEy hornes in the Eastcrest 5ubdiv'rsion {ocated in #he 5top Six Neighborhood
Empowerment Zone (NEZ), in accordance with the NEZ Basic IncentiWes.
D15CU.5SlON:
The �WHFC is tne deve�loper/owner af t�e Eastcrest 5u�bdi�ision in the 47Q0 B1ock �of Eas# Berry Street
and Eastcrest Caurt located in NEZ No. 1. � �
The FWHFC applied for municipaE praperty tax abatement under the NEZ, Basic lncenti�es (M&C G-
13208R dated June �, 2002, M&C G-13580 dated April 2, 2002, as amended, and M&C G-13662R
dated July z3, 2002, as amended). The Housing Department �as rev�Ewed the ap�lica�ion and certified
that t�e graperty r�eets the efi�ibility criteria to receive NEZ municipaf praperty tax abatement. The
NEZ Basic lncenti�es ofters a five-year municipal �ro�erty tax abatement of tt�e increas�d �alue of
improvements to a developerlowner of any new home cor�structed within a IVEZ. �
I Upon execution of the Agreements, the totaC ass�ss�d �alu� of each home in the Eastcrest 5ubdivision
used for calculating municipal prape�ty tax will be frozen far a fi�e-year period, starting on January 1, of
the y�ar follawing ihe year in which the home is sold, at the pre-impro�ement �alue of each lot as defiried
by the Tarrant Ap�raisal District �TAD} or� Ja�uary 1, 2002, as tollows:
• Pre-Emprovem�n# TAD Value Qfi Impro�emer�ts $ -0-
�. Pr�-Improvemen# TAD Value of Land $1,OOO�per !ot .
� Totai Pre-Improvement TAD Va�ue $1,00� per lot
Ciiy of .iFort Wo�th, Texc�s
M�yor and Council Communic��tiar�
DATE R�F�RENCE NUMBER � I.OG NAM�
si� 0102 , �-� 9235
2Qf3
05NEZ
PAG�
-suB��cT Al1THORIZATION TO ENTER INTO TAX ABATEMENT AGREEMENTS WITH THE
�ORT WORTH HOUSWG FINANCE CORP4RAT10N F�R THE D.EVELOPMENT OF
SIXTEEN SWGLE-FAMILY HOMES �OR THE EASTCREST SUBDEVISION LOCATED
1N THE STOP S{X NEIGHBORHOOD EMPOWERMENT ZONE �_
Address
Leqa! Description
�ot �D, Bloe[c 1, Eastcrest Addition
Lat 6, Block 2, Eastcrest Addition
Lat 9, Block 1, Eastcrest Addition
Lot 5, Block 2, Easicrest Addi#ion
Lot 8, Block 1, Eastcrest Addition
Lot 4, Biock 2, Eastcresi Additian
Lot 7, Block 1, Eastcrest Additior�
Lot 3, Bloc4c 2, Eastcrest Additian
Lot 6, Block 1, Eastcresf Addition
Lot 5, Block �l , Eastcrest A�idition
Lot 4, Block 1, Eastcrest Addition
Lat 3, Block 1, Eastcrest Addition
Lot 2, Biock �V., Eastcrest Addition
Lot 2, Block 2, Eas#crest Addifion
Lot 1, Block 1, Eastcrest Addition
Lot 1, Biock 2, Eastcrest A�ditiar�
31 QD Ea�tcrest Court
310� Eastcrest Court
3� Q4 Eastcrest Court
31 D5 Eastcrest Court
3� O8 Eastcrest Court
31 Q9 Eastcrest Court
3112 Eastcrest Court
31 � 3 Eastcrest Court
31 � 6 Eastcrest Caurt
3120 Eastcrest Court
3124 Eastcrest Court
3128 Eastcrest Court
3132 Eastcrest Court
3133 Eas#crest Court
3136 Eastcrest Court
313Z Eastcrest Court
FWHFC expects to cnmplete construction on or before ,]une 30, 2003, and sell the sixteen homes fia
new owners. U�on the sale of eacf� h�me by FWHFC, the Housing D�parfinent staff will present the
proQosed assessm�nt af the tax abatement agreements to th� City Council far appraval if the new
owner rrieets all eligible criteria as �stated �in �the NEZ Basic fncentives.
FWH�'C wi1E invest $1,6D0,000 to construct sixfeen single-family Y�omes� in the Eastcrest Subdivision..
TY�e location of fhe proposed development,..typical elevation, and project description are attached to tt�is
Mayor and Council Communication. Tne municipal property tax on the improved value is estimate� at
$558 per house per year or a total af $44,64a aver the five-year period. �
On Augt�st 13, 20a2,� the abov� prnposal was endorsed by th� Econamic and Community Development
Cammittee for City Council a�provai.
The Eastcrest Subdivision is located in COUNCIL DISTRICT 5.
Ci�y of �'ort �orth, Tex�s
Mayor ��d Council �Gomr�nur�fc�-tfo�_
DATE REFERENCE NUN[BER LOG NAM� PAGE �
s�� o/a2 C��t 923� �_ � a�NEz 1-- - - � of �
suaa�cY . AUTHaRIZATION T� ENTER lNTO TAX ABATEMENT AGREEMENTS WiTH 7HE
F'ORT WORTH H�USfNG FiNANCE CORPORATION FQR THE DEVELQPMENT OF
SIXTEEN S1NGLE-FAMiLY NOMES FOR THE EASTCREST SUBd1V1SION L�CATFD
1N THE STOP SIX NEIGHB�RHOC?D EfviP�WERMENT ZONE __ __
FISCAI� INFORMATfONICERTIF1CATf�N;
The Fi�ance Director certifies that this actio� wiil have no mater�al effect c�n� City funds.
' RR:n �
Submitted far City Manager's
Officc by:
Reid Rector
�ri�i�ating Depurttnent I�ead:
3erome Walker
A[iditionul Inform�tion Caatact:
lerome Walker •
�t�a
7537
7537
FCJND � ACC�UNT y CEl+�'rEIt � AMOUNT
(to) .
I
1 .
, (from)
CITY �ECRETARY
APP1tOVED 69/10/OZ