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HomeMy WebLinkAboutContract 28126�IiY �E������ L�- � .��� STATE 4F TEXAS § ��N����� � � " "- COUI�ITY OF TARRAI�IT § � : � ;; TAX ABATEMENT AGREEMElliT FOR PR4PERTY LOCATED IllT A rrErG�o�oon E�9wE�r�T zor� This TAX ABATEMEI�IT AGREEMENT ("Agreement") is entered into by and between the CITY OF FORT WORTH, TEXAS (the "City"), a home rule municipal carpora�.an organized under the laws of the State of Texas and acting 6y and through , its duly autharized Assistant City Manager, and the Fort Warth Housing Finance Corporation, a non-prafit housing development corparation. {"Owner"), acting by and t�raugh 7erome Walker, its duly authorized �wners' Representative. The City Cauncil of the City of Fort Wort�i ("City Council") hereby finds and the City and Owner hereby agree that the fallowing statements are Crue and corr�ct and constitut�; the basis upon which the City and Owner have entered into this Agreement: A. Chapter 378 of the Texas Local Go�ernment Code allaws a municipality to create a Neighborhood Empowerment Zone (NEZ) if the municipality determines that the creatian of the zane wa�zld pramote: 1. The creation of affordable housing, including manufactured housing in the zane; 2. An increase in ecanamic develapment in the zane; 3. An increase in the quality of social services, educatian, or public safety provided ta residents ai the zane; or � 4. The rehabilitation of affordable housing in the zone. B. Chapter 378 of the Texas Laca1 Governrnent Cod� provides that a municipality that crcates a NEZ, rnay enter into agreements abating municipal property t�es on praperty in the zone, C, On �uly 3I, 2001, the City adopted basic incenti�es for property owners wha own property located in a NEZ, stating that the City elects to be eligible to participate in tax abatemenC and ineluding guidelines and criteria governing tax abatement agreements entered inta between the City and various third parCies, titled "NEZ Basic Incentives" ("NEZ Incentives"), which is attached hereio as Exhibit "A" and hereby made a part af this Agreement for all purposes. D. The NEZ Incen��es contains appropriate guidelines and criteria governing ta�c abatement agreements ta be entered into by the City as cantemplated by Chapter 312 of the Texas Tax Cade, as amend�d {the "Code"). , ,;I�'i(.,s,�.!�ft�Jj � '���9 Il � E. �n September I1, 2001, the Fort Worth C�ty Council adopted �rdianance No. 147C7 (the "Ordinance") establishing "Neighborhaod Empowerment Reinvestment Zone No. 1," City af Fort Worth, Texas (the "Zane"). F. Owner owns certain real property lacated entire3y within the Zone and that is more particuiarly described in Exhibit "B", a�Cached hereto and hereby made a part of this Agreer�aent for all putposes (the "Prer►�ises"). G. Owner or its assigns plan io consiruct the Required Improvements, as defined in Sectian 1.1 of this Agreement and as described in Exhibit "C", an the Premises to he used for as a single-family residence that will be owner occupied. (the "Project"}. � . H. On September 28, 200Z, Owner submitted an application for NEZ incenti�es and t�x abaternent to the City concerning the contemplated use of the Premises {the "Application"), attached hereto as E�hibit "D" and hereby made a part of this Agreement for al3 purpases. � I. The City Council finds that the contempiated use of the Premises, the Required Improvements, a� defined in Sectian 11, and the terms of this Agreement axe � con�istent with encouraging development of the Zone in accordance with the purposes for its creation and are in compliance with the NEZ Incentives, the Resalution and other applicable laws, ordinances, rules and regulations. J. The City Cauncil frnds that the terms of this Agreement, and the Premises and Required Improvements, satisfy the eligibility criteria of the NEZ Incentives. K. Writt�n notice that the City intend� to enter inta this Agreement, along with a copy af this Agreement, has been furnished in the manner prescribed by the C�d� to the presiding officers of the govei-ning bodies of eaeh of the t�xing units in which the Pr�rnises is loeated. 1l10W, THEREFORE, the City and Owner, for and in consideration af the terms and conditions set forth herein, do hereby contract, cavenant and agree as follows: I. OWllTER'S COVENA�TTS. 1.1. Real Pronertv Imnrovemen�,�� Owner shall construct, or ca�se to be constructed, on and within the Pre�nises certain impro�ements consisting of a single family residence, {i) of at least �,20Q square feet in size, a�d (ii) having a conskruction cost upon completion of $ 6Q,D00 including site development costs but �uch minimurn construction costs shall be reduced by any constructian cost savxngs (collectively, the "Required Improvements"). �wner shall pra�vide a survey of the completed home showing Required Improvements before the; home is sold. The parties agree that the final aurvey shall be a part of this Agreement and �� '. 2 sha11 be labeled E��bit E. Minor variations, and more substar�tial variations if approved in writirig by both of the parties to this Agreement, in the Requir•ed Tmpravements irom the d�scription provided in the Application for T.ax Abatement sha1l not canstitute an Event of Default, as defned in Section 4.1, provided that the conditions in the first sentence of this Sectia� 1.1 are met and the Required Impro�ements are used far the purposes and in �he manner described in Exhibit "D". 1.2. Comnletion Date of Required Imnrovements. Owner covenants to substantially complete construction of all of the Required Improvemetats within two years from the issuance and receipt of the building permit, unless delayed beeause of force majeure, in which case the two years shall be extended by the number of days comprising the specific force majeu:re. For pt�rposes of tlus Agreement, force majeure shall mean an event beyond Owner's reasonable control, including, without lirnitatiqn, delays caused by adverse weather, delays in receipt of any required permits or appro�ais from any gavernmental authority, or acts of God, fires, strikes, t�atianal disasters, wars, riots and material or labor restrictions and shortages as determined by the City of Fort Worth in its sol� discretion, which shall not be unreasonably withheld, but shall not include constructzon dalays caused due to pureiy financial matters, such as, without limitation, delays in the obtaining flf adequate financing. 1,3. Use of Premises. . Owner eovenants that the Required Improvements shaIl be constructed and the Premises shall be sold so that it is continuously used as the prirnary residence af the Home Buyer in accordance with the description af the Project set forth in Exhibit "D". In addition, Owner covenants that througi�out the Term, the Required Impravements shall be operated and maintained for the purposes set farth in this Agreement and in a manner that is consistent with the general purposes of encauraging dev�lopment or redevelopment of th� Zone. �. ABATEMEIi�T AMOUN��. TERMS AND COI�DITIONS. Subject to and in accordance with this Agreement, the City hereby grants to Owner a real ' property tax abatement on the Premises, the Required Impravements, as�specifically provided in this Sect�on 2{"Abatemen�"). "Abaternent" of real property taxes anly includes City of Fart Worth-imposed taxes and not taxes fxom other taxing entities. �.1. Amount of Abatement. Tt�e actual amount af the Abatement gz'anted under this Agreement shall be based upon the increase in value af the Premises and the Required Impro�ements over their values on January 1, 20�2 and according to the Tarrant Appraisal District, this amount is $1,000 the yeaz in which t�is Agreement was entered ir�t,o;; �� � , ' �..�� 3 . �' One Hundred percent (1fl0%} of the increase in value from the construction of the Required Improvements. If the kotai construction CDSfS of the Required Ianprovements are less than as pz`ovided in Section 1.1 af this Agreement, except that such minimum construction casts shall be reduced by construcCion cost savings, �wner will not be eligible to receive any Abatement under this Agreement. 2.2 Term of Abatem�nt. The Ce�tn of the Abatement (the "Term") shall begin on 7anuary 1 of the year following the calendar year in which the Required Impra�ement is sold to a Home Buyer to be used as its primary residence �"Beginning Date")�and, unless sooner terminated as herein provided, shal] end on December 31 immedia�ely preceding �he fifth {5th) anniversary of the Beginning Date. Upon the sale to a Home Buyer, City shall certify that the Required Impravements have been completed in satisfaction of the terms of this Agreement. Hawever, the Compliance Auditing Term will begin on th� date this agreement is execUted and will end on the expi�ation date oi the Terrn. �.3. Pratests Qver Annrais�ls or Assessment,�. Owner shall have the right to protest and contest any or all appraisais or assessments of the Premises andlor impravements thereon. 2.4, Abatement Apnlication Fee. The City acknowledges receipt from Owner of the required Abatement applicatian fee of twenty-five dollar5 ($25.Q0}. 3. RECORDS. C�,�TIFICATI�IV AND EVALUATION OF PRO,TECT,. 3.1. Inspection of Pre�ses. Between th� executiot� date of this Agreement and the �ast day of the Term, at any time during construction of the Required 7mprovements and following reasanable notice to Owner, the City sha]1 have.and Dwner shall provide access to the Premises in order for the City to inspect the Premises and evaivate �he Required Improvements to ensure cotnpliance t�+ith the -terms and conditions of this Agreement. . Owner shatl cooperate �u�ly with the City during any such inspection and/or evaluation. 3.�. Certifca�ion 4 _� Property Owner, and Home Buyer once the property is sold, shall Certify an�ualiy to the City that it i� in compliance with each applicabie term oi tYus agreement. Tkae City shall have the right to audit at the City's expense the financial and business records of Owner that relate to the Consiructio� of the Project and Abaternent terrns and canditions (collectively, the "Records") at any time. during the Compliance Auditing Term in order to deterinine carnpliance with this Agreement and ta calculate the correct percentage of Abatement availab�e to Owner. Owner sha11 make all applicable Records available to the City on the Premises or at anot�►er location in the City following reasonable advance notice by ihe City and sk�a11 otherwise cooperate fully with the City during any audit. 3.3. Provision of Infarrnation. On or before February 1 following the and of every year during the Compliance Audi�ing Term and if requested by the City, Owner shall provide information and documentatian for tk�e previ�us year that addresses Owner's campliance with eact� of the terms and conditians of this Agreement for that calendar year. Failure ta provide alt informatiQn within the contral of Owner required by tlais Sectian �3.3 shall constitute an Event of Defattlt, as defined ir� 5ectiori�4.1. 3.4. De�erminat�n of Com��iance. On or before August 1 of each year during the Compliance Auditing Term, tk�e City shall make a decision and rule on the actual annual percentage of Abatement available to Owner for the fallowing year of the Term and shall notify �wnez' a� such decision and ruling. The actual percentage of the Abatement granted foz a given year of t�ie Te�-nn is therefore based upon Owner's compliance with the terms and canditions of this Agreement during the previous year of the Compliance Auditing Term. 4, EVEI�ITS OF DEFAULT. 4.1. Def ned. Unless otherwise specified herein, Owner shall b� in default of this Agreement if (i} Owner fails to construct the Required Improvements as defined in Section 1.1; (ii) ad valorem real p:roperty taxes wiYh resp�ct to the Prernises or the Prajeci, or its ad valorem taxc:s with r�spect to the tangible persanal property located on the Premises, become delinquent and Ot�vner does not timely and properly follow the legal procedures for protest and/or contest of any such ad valorem real property or tangible personal property taxes or (iii) Home Buyer does not use the Premises as primary residence once the abakement begins {collectively, each an "Event of Default"). 4.�. I�Intice to Cure. � �, Subject to Sec�ion 5, if Che City determines that an Event of De�ault has occurred, the City shall provide a wntten notice to Owner that describes the nattjre of the Eve�t of Default. Owner shall have nir�ety (90) calendar days from the date of receipt of this � written notic� to fully cure or ha�e cured the Event of Default. If �wner reasonably believ�s that Owner will require additional time �a cure the Event of Default, Ownex shall promptly notify the City in writing, in which case (i) after advising the City Cauncil in an open meeting of Owner's effarts and intent to cure, Owr�er shall have one hundred eighty (18�} calendar days from the ariginal date of reeeipt of the written notice, or (ii) if Owner reasonably Y�elieves that Owner will require more than one hundred eighty (180) days ta cure the Event of Default, after advising the Ci�y Cauncil in an open meeting of Owner's efforts and inteni to cure, such additional time, if 'any., as rnay be offered by the City Cauncil in its sole discretion. 4.3. Termin�tion for Event of Default and Pavment o� Liq�idated Da�a�es. If an Event of Defa�lt which is defined in Section 4.1 has not been cured within th.e time frame specifically allowed ander Section �4.2, the City sha11 have .the right to terminate this Agrreement immediately. Owner acknowledgc;s and agrees that a� uncured Event of Defaul� will (i) harm the City's economic development and redeveiopment efforts on the Premises and in tha vicinity of the Premises; (ii) z'equire unplanned and �xpensive additi�nal administrativa aversight and involvernent by the City; and (iii) otherwise harm the City, and Owner agrees that the amounts af actual damages therefrorn are specula�iv� in nature and wi11 be difficult ar impossible to ascertain. Therefo:re, upon termination o� this Agreement for any E�ent of Deiault, Owner shall not be eligible for the Abatement for �he remaining Term and Owner shall pay the City, as liquidated damages, all taxes that were abated in accordance with this Agreement for each y�ar when an Event of Default exis�ed and which otherwise would ha�e been paid to the City in the absence of this Agreement. The City and Owner agree that this amount is a reasonable approximation �f actual datnages that th� City will incur as a result of an uncured Event of Default and that Chis Section 4.3 is intended ta pro�id� the City with compensation for actual damages and is not a penalty. This amauni may be rec4vered by the City thraugh adjustments made to Owner's ad valorein property tax appraisal by the appraisal district that has jurisdiction ove:r the Premises. Otherwise, this amount shall be due, Qwing and paid to the City within si�cty (60) days fallowing the effective date of termination of this Agreernent. In the avent that all or any partion of this arnount is not paid to the City within sixty (b0) days following the effective date of ternzination o� this Agreement, Owner shal] also be liable for alI penalties and interest on any outstanding amount at the statutory rate fnr delinquent taxes, as determined by the Cade at the time of the payment of such penalties and inte:rest (currently, Section 33.01 of the Code). . 4.4. Termination at Wijl. If the City and Owner mutually determine that the develapmant or use of the Premises or the antieipated Required Impravements are n.o longer apprapriate or feasible, or that a higher or better use is preferable, th� City and �wner may terminate this Agreement in a written format �that is signed by both parties. In t�i-� �uenG; !a�) :f ��c �=�rm �, 6 , has comrnenced, the Term shaIl expire as of the effecti�� date of the termination of thfs Agreement; (ii) there shail be no recapture of any taxes previously abated; a�d (iii) neither party shall lia've any further rights or obligatians hereund�r. 5. 6. City: EFFECT OF SALE OF PREMISES. The Abatement granted hereunder shall vest or�ly in �wner and carmot be assigned to a new owner of alI or any portion of the Premises and/ar Required Improvements without th� prior written consent of the City Council, which consent shall not be unreasanably withheld pravided that {i) the City Cauncil �nds that the praposed assignee is financially capable of ineeCing the terms and conditions af ttus Agreement and (ii) the proposed p�rchaser agrees in writing to assume all terms and conditions of Owner under this �greement. Owner may not otherwise assign, lease or convey any of its righ�s �nder this Agreement. Any attempted assignment �vithout the City Council's prior written consent shall constitute grounds for termination Qf this Agreement and the Abatement granted hereunder fol�owing ten (1�) calendar days of receipt of written notice frorn the City to Owner. In no event shall the abatem�nt ter�a be extended in the e�ent of a subsequent sal� or assignmen� NOTICES. All written notices called for or required by this Agreement shall be add�essed to the foilawing, ar such other party or adclress as either party designates in writing, by certified mail, postage prepaid, or by hand delivery: � Owner: City of Fort Warth Attn: City Managex 1000 Throckmortan Fort Worth, TX 76102 7. MISCELLANEQU�. �.1. Bonds. Fort Worth Housing Finance Corpoxataan 1000 Thrackmorton Fort Warth, Texas 76IO2 ' The R�quired Ymprovements will not be financed by tax increment bonds. This Agreement is subject to rights of holders of outstanding bonds af the City. 7.2. Con�icts af �nterest. 7 �, . � , , � � Neither the Premises nor any of the Requiz'ed Improvements covered by this Agreement are awned or leased by any me�ber of the City Council, any member of the City Pianning oz' Zoning Comrnission or ar�y member of t�e gav�rning body of any taxing units in the Zone. '�.3.. Conf�icts Between Dacnments. In the event of any conflici between the City's zoning ordinances, or other City Qrdinances or regu�adons, and this Agreernent, such ordinances or regulations sha11 control. In khe event of any conflict between the body of t�is Agreement and Exhibit "D", the body o� this Agreement shall cantrol. �'.4. Fnture Application. A portion or all of the Premises andlor Required Improvements may be eligible for camplete or partial exemption from ad walarem taxes as a result af existing law or future legislatian. This Agreement sl�all not .be � construed as evidence that such examptions do nat apply to ihe Premises and/or Required Improvements. � "�.�. Citv Councii Authqrization. This Agreetnent was authorized by the City Council through agproval of Mayor and Council Communication No. an , which, arnong other �hings, authorized the City Manager t� execute this Agreement on behalf of the City. '�.6. Estoppel Certi�icate. Any party hereto may request an estoppel certificate from another party t�ereta so Iong as the certificate is requested in connection with a bona fide business purpas�. The certificate, which if requested will be addressed to the Owner, shalI include, but not necessarily be limited to, staternents that this Agreement zs in full force and effect without default (or if an Event of Default �xists, the nature of ihe Event of Defaalt and curative action taken ancllar necessary to effect a cure}, the remaining terrn of this Agreem�nt, the levels and remaining term of the Abatement in effect, and such other matters reasanably requested by the party or parties ta receive the certificates. q.7. Ovvner Stan�an�. Ow�er shall be deemed a proper and necessat'y party in any litigation questioning ar challenging the validity of this Agreement or any of the underlying lavws, ordinances, resolutions or City Council acfiions authorizing this Agreement, and Owner shall be entitled to intervene in any such litigation. 7.5. �enue and .Turisdiction. . _ _ _ _ 8 . ,� This Agreement shall be canstraed in accordance with the laws of the 5tate of Texas and applicable ardinances, rules, regulations or palicies of the City. Venue for any action under this Agreernent shall lie in ihe State District Court of Tarrant C�unty, Texas. This Agreement is pe�rformable in Tarrant County, Texas 7.9. Recordatian. A certified capy af this Agreement in recordable form sha11 be recorded in th� Deed Records of Tarrant County, Texas. 710. Severabilitv. If any provision af this Agreement is held to be invalid, illegal or unenforceable, the validity, legality and enforceability af the remaining pro�isions shall not in any way be affected or impaired. . 9.11. Headin�s Not Controllin�. Headings and titles used in this Agreement are for reference purpases onIy and shall not be deemed a part of this Agr�ernent. '�.1�. Entiretv of Agreement. This Agreement, including any exhibits attached hereto, and any docu�ents incorporated herein by referenc�, contains the entire understanding and agz�eement beiween the City and Owner, their assigns and successors in interest, as to the matters contained herein. Any prior or contemparaneous aral or wriC�en agreement is hereby declared null and void to the exkent in c�nflict with any provision af this Agreement. This Agreement shaIl not be amended unless executed in writing by both parties and approved by the City Council. This A,g�reement may be executed in multiple count�rparts, each of which shall be considered an original, huC all of which shall constihtte one instrurnent. � 9 ,.. , �. , �: ���� i of Fart Worth EXECUTED thi day af , 2002, by the C ty , Texas. EXECUTED this �day of Sr p�w-.. (o �� Finance Corporation. , 2002, by Fart Warth Housing CTTY OF FORT WORTH: FORT WORTH HOUSING FINANCE CORPORATION: By: ' Assistant City Manager B � ��� � _ rer e C. Walker ATTES�:. �,�. �- � � B}�: � � �� .1.' _� • r .� � ity�Secr��etar� . APPROVED TO FORM AND LEGALITY: B �. Y� Cynthia Ciarcia Assistant City Attorney i � %� . . • M & C: � ..- ' . IC�- ,. ATTEST: . �U � ,, . . ,� _ _ _ ; � STATE OF TEXAS § COUNTY OF TARRANT $ BEFORE ME, the undersigned aut�ority, on this day personally appeared ��!d ��ro� , Assistant City' 1Vlanager of the CITY OF FORT W�RTH, a rnunicipal carporation, lcnown to me to be the person and officer whose narne is subscribed to the %regaing in�trument, and acknowledg�d to me that the same was the act of th� said CITY OF FORT WORTH, TEXAS, a municipal c�rporation, that �e was du�y authorized to perform th� same by appropriaie Mayor and Council Communication of the City Council of the City of Fort Warth and that he executed the same as the act of the said City for the purposes and consideration therein expressed and in the capacity therein stated. ' GIVEN UNDER MY HAND AND SEAL �F OFFiCE this ��_day of oe� , �oa2. ,���.a�e�. Notary Public in and for khe State of 'I'exas l�.Su /IA �� R 1V�'� S� Notary's Printed Name ��YpL�, �osE��ga��v�s 2o f,,.«.,��� t �,��=�j fVOTARYPUBLIC '�� �% � 5tate af Texas �'�„o�;�,.�Comm. Exp. D3-31-2005 11 STATE 4F TEXAS § COUNTY OF TARRANT � § BEFORE ME, the undersigned authority, on this day persflnally app�are;d�� ��� C� (_,�.� f�c� ��-� ��,.'� of the Fort Worth Hausing Finance Corporation, a Texas non- profit corporation, known to me to be the person whose name 15 subscribed to � the foregoing in�trurnent, and acknowledged to rne that he executed the same for the purpQses and consideratian therein expressed, in the capacity therein stated and as ihe act and deed of the Fort Worth Haus�ng Finance Carporatson. GIVEN ER MY HAND AND SEAL OF OFFICE thzs of 5� �-���,..��� , 20Q2. 1 ���....- ��� Notary Public in and for t�e State of Texas ' " �" - -' �' � -� `Y� �,.. . — � ���,,, s Notary's Printed I�ame �' �'�4 WILLIA�1 H�WITi , _*: *' MY COMMISSIO�3 EX!'IRES _ %��*r' Jonuary 27, 2€363 �„lu+�`_ ��-�� day 12 Exhibit A: NEZ �ncenti�es Exhibit B: Property De�cription Exhibit C: Project descriptian .including kind, number and location of the propos�d • impravements. Exhibit D: Application: (NEZ) Tncentives and Tax Abateinent Exhi�it E: Final Sur�ey 13 ,�X�11,31 � l� � C1TY OF F�T�T WORTFi N�If�HBORH00� �IVIPOWERMEWT ZON� (N�} �AS[C [IVC�N7IV�S Adopted by the Fart Worfh Cify Council �n July 39, 2009 (M&C G-93208 R) Amended 6y the Forf Warth Crty Council on Apri12, 2002 (M&C G-93580), July 23, 2002 (M&C G-93682} I. G�AI�RA�, PUR��S� AN� O�JECTI!!�5 Chap#er 378 of ti�e Te�s Locaf Government Code allows a municipal�ty fo create a Neighborhood Empowermenf Zone (NEZ) w1�en a"..,municipality determines tF�at the creation of the zone would promnte: (1) �F�e creation of affordable hotasing, inc�uding manufactured housing, in the zone; (2) an increase in eco�omic devefapment in the zone; (3) an increase in tl�e quality af socia] services, ed�acatifln, or public safety pravided ta residents of the zon�; or (�) t�e rel�abilitation of afFordable hausing in the zone." The City, by ac�opting the follawing incentives, will promote affordahle ho�siRg and econamic developm�nt in the NEZ. N�Z incenii�es wilf not be granted after the N�Z expires as defined in the resolution desigrtating fhe NEZ. For each NEZ, th� City Council may ap�rove additional ferrns and incenfi�es as permitted by Chapter 378 of the Texas Local Go�emment Co�e or by City Council r�solutian. However, any tax abatement awarded befare the expirafian of a NEZ sha�l carry its fulf term according to its tax abatement agreement appro�ed by the City Council. . A� mandated by stafe law, the �raperty tax abatement under �his policy applies '�o the ow�ers o� real proper�y, Plothing in the policy shall be construed as an oi�ligation by the C�ty of �orE Wor�h fa approve any ta�c abatement appfication. !I. _ �}��IMITIONS uAt�afemenf' means the full or pariial �xernption from City af Fart Workh ad valorem taxes an �ligibfe praper�ies fflr a periad of up to � d years and an amount of u� to 100% af th� increas� in a�apraised value (as reflected an fihe ce�ified tax roll af the appropriate cflunfy appraisal district} resulting from �mprovements. Eligible proper�ies must be facated in the NEZ. "Base Value" is the �alue of tf�e property, excluding land, as determined by the Tarrant Caunty Appraisal District, during the year ref�abilitatian occurs. "Burldrng Stanrlards Commission" is t�e - commission created under Sec. 7-77, Article IV. Minimum Buildi�g Standards Code ot the Fort Worth City Code. "Caprtal lnvesfinenf" includes only real properiy impro�ements such as new facilities and s#ructures, site improvements, facility expansion, and facElity modernizatian. Capital Investmenf does NOT include fand acqu�sition costs anc�lor any existing im�rovements, ar personal pro�er�y (sucFt as machinery, eauipment, andlor supplies ancE inventory). "Gity of Far# Worth Tax Abatement Policy Stat�menf" means the policy adapted by City Cauncif on February 29, 2000. "Commercia!/Indusfrial Developmenf Profecf" is a devel�pment project whEch proposes to canstruct ar r�habifiiate commerciallindustrial fac9lities on property that is (or mes#s the requireme�ts �o be} zoned eomm�reial, industrial ar mix�d use as def�ned by the City of Fort Wor�h Zoning Ordinance. "Comrnunity Facility Development Project" is a de�elopmeni praJect which proposes to constr�ct or re�abilitate community facilities on pro�erty that allaws sucl� use as defined by tF�e City of Fort Wort� Zoning Ordinance. "Eligible Reha611itatian" includes onfy physical improvements to real property. Eligible Rehabilitaiion does NOT include �ersonal property (such as fumi#ttre, appiiances, equipment, a�dlor supplies}, "Gross Floor Area°' is measured by taking the autside dimensfons of the building at each floar level, except that portion of the basemenf used o�fy for ufilities or storage, and any areas wiihin the building used for off-street parl�ing. "Minimum Building Stan�lards Code" is Article IV of the For� Worth City Code ado�ted pursuant to Texas Local Government Code, Chapters 54 and 214. � "Minorify Br�siness Enterprise (MSE�" and "Women Busin�ss Enterprrse (WBE}" is a minority or rnroman owned business that ha5 received certifiicatio� as eifher a certified MBE or certifieti WBE by either the North Texas Regional Certi�ication Agency �NTRCA) or the Texas D�partment of Transportation (TxDo�), Highway Division. "Mixed-Use Development Project" is a deve[opment praject which proposes ta construct or rehabilitate rnixed-use facilities in which residentia� uses constitute 20 �ercent or more of the total gross floor area, and office, eating and entertainmeni, andlor retail sales and service uses eonstitute '[0 percent or mare af tF�e total gross floor ar�a and is on property ihat is (or meets the requirements ta be) zoned mixed-use as described by fhe Cify of �ort Vllar�h Zoning Ordinance. "Multi-family Developmenf Project" is a develapment pro�ect which pragoses to construct or rehabilitafe multi-family residential living units on praper�y thafi is (or meets th�e requ�rement� to �e} zoned mul#i-family or mixed use as defined by the City of Fort Worth Zoning Ordinance. "Reinvestmenf Zone" is an area designate�f as such by the City of Far� Worth in accort�ance wiih tY�e Property Redevelopment and Tax Abatemenf Act codifed in Chapter 312 of the Texas Tax Code, or an area designated as an enterprise z�ne pursuant fo the Texas Ent�rprise Zone Act, codified in Chapter 2303 of the Texas Government Cade. III. NVUNICIPAL PFZOP�RYY �/�K l���4TEM€PlTS ,�. R�SID�PIi�A� PROP�RT[�S �OCpo'T�9 li� A iV��. �'U�� A�Ai�IVI�fVi F�� � YEARS 2 �. For residential properky purchased before NEZ designation, a homeawner shal] be eligible to apply for a ta�c abafement by meeting the following: a. Proper�y is owner-occupied and the primary residence 4f the homeowr��r prior ta the final NEZ designation. Homeawner shall provide proaf of awnersF�ip by a warranty deed, affidavit of heirship, or a pt'obated will, and shall show proaf of primary residence by homestead exemption; and b. Homeowner must pertorm Eligib[e Rehabifitation on #he property after NEZ designatian equai �o or in excess of 30% of the Base Value of fhe proper�y; and c. Prop�rty is not in a tax-r�efinquent status when �he abatement application is subm�tted. 2. Far residential property purchased af�er N�Z designafion, a homeowner shall be elEgible to ap�fy for a tax abatement by meet9ng the following: a. Property is newfy consfruct�d ar rehabilitated after th� date of final NEZ � designation; and b. Proper�y is owner-accupied and is the primary residence of fihe ham�owner. Homeowner shall pro�ide praof af ownership hy a warranty d�ed, affidavit of heirship, or a probated will, and shal[ show proof of primary residence by homestead exemption; and c. For rehabifitated property, �[igible Rehabilitation costs on the property shall be equal to or in excess ofi 3a% of the Basa Valu� af the property. The s�ll�r or owner shall provide fhe City infiormation to sup��rt rehabi[itaiian costs; and d. Property is not in a tax-delinquent status w�en the abatement application is submitted, ar�d . e. Property is in conformance with the City af Fort Wortl� Zoning �rdinanc�. • 3. For investor owned single famify proparty, an investor shali be efigible to apply for a tax abatement by meeting ihe following: a. b. c. d. Prapariy is newly constructed or rehabilitated by the investor after NEZ designation; and For rehabi�itated �roperty, Eiigible Rehabilitaiian costs on the properfy shall be equaf to ar in excess of 30% af fhe Base Value of the praperty; and Rroperfy is not in a tax-delinquent status when the abaterrtent application is submitted; and Property is in conformance wiih ti�e City of Fort Warth Zoning Ordinance. �. iV1U�iI��AIVII�Y ��V�LOP�VII�Pli PROJ�C�S �OCAi�D II� A N�� 1. Fuii Abatemer�f tor 5 years. In order to be eligible for a property tax abat�ment, u�on completion, a newly construcfed or rehabiliiated multi-family development project in a NEZ must satisfy the foifowing: At least twenty percent {20%) of the total unifs constructed or rehabiliiated sl�al[ be affordable (as defined by the U. S. Department af Housing and Urban Development) to persons with incames at or �e[ow eighty perc�ni (80%} of area median income based an family size and such units shall be set aside fiar persons •at or below 80°10 of the median income as defined by fF�� U.S. Departmertt of Hausing and Urban De�elopment. Cit�r Council may wai�e or reduce fhe 20% affordability requEremenf on a case-by-case basis; and {a) �or a m�lti-famiiy de�elopment project cons�ructed after NEZ designation, the pr�ject must provide at least five (5} residential living units OR have a minimum Capiial In�estment of $20�,000; or (b) For a rehabilitation project, the property must be re�abilitated after NEZ designatian. Eligible Rehab[litatian costs on the property s�all be a# feast 30% of the Base Value nf fhe property. Such Eligible Rehabilitation costs must come from the rehabilitation of at least five (5) residential living units nr a minimum Capital Investment of $200,000. 2. 1'°/a-100% Abat�ment of City Ad Valorem taxes up to 1 D yeafs lf an appl�cant appfies for a tax abatement agreement rrvitl� a term af more than fi�� years, ihis section shall apply. Aba#ements for mUlti-family de�elopment projects for up to �0 years are subject to City Council appraval, The applicant may apply with the Housing Department far such abatemenf. Years 1 throuah 5 of tF�e `iax Ahaicemenf Aqreemen4 Multi-family projects�shall be eligi�fe for 100% abaternent of City ad valorem taxes for years or�e througi� fi�e af the Tax Abatement Agreement upvn the satis�action of ti�e following: At least twenty percent (20%} of the total units canstructed or rei�abilifated shall b� afFordable (as defined by the U. S. Departrnent af Housing and Urbar� Deve�opment} to persons with incomes at or below eighty percent (80%) of area median income based on family size and sueh units shall be set aside for persor�s at ar below 80% of tf�e median incame as defined by the U.S. Department of Housing and Urban Development. City Couttcil may waive ar reduce �E�e 20% affordability requirement on a case-by-case basis; and a. �or a mufti-famiCy develapmenf project constructed after NEZ designafian, the projeci must pro�ide at least five (5) residenfiial living uni#s OR have a minimum Capital fnvestment af $200,QOQ; or b. �or a rehabilitation projec�, the property must be rehabilitated after NEZ designation. EEigible RehabilitatEan cvsts on the properky shafl be at least 30°fo of the Base Value of the property. Such Eligible Rehab�lita�ion costs must come from the rehabilitafian of at least five (�) residential living units or a minimum Capifal Investment of $200,QOa. Years fi throuqh '!0 oi� the iax Abafement �►qreement Multi-family projects shall be eligible for a 1-100% abatement of City ad va[arem taxes for years six thraugh ten af the Tax Abatement Agreement upon fE�e satisfaction of the f��lowing: a. At least twen#y percent (20%} of the tafal units constructed or r�habi[itaisd shali be affordable (as defined by the U. S. Depar�ment of Hausing and Urban Developmenf) to �ersons with Encomes at or below eighfy percent {80%} of area 4 median income based on family size and such units shall be set aside �or persons at or below 80% ofi the median income as defined by the U.S. D�partment of Housing and Urban Development, City Cauncil may waive or reduce the 20% affordability requireme�t on a case-by-case basis; and 1. Fflr a multi-family develapmer�t project construc#ed after NEZ designation, the project m�st provic�e at leasi five {5} residential Ei�ing units OR have a minimum Capital lnvestment af $200,000; or 2. For a reF�abilitation praject, ff�e property must be rehabilitated after N�Z designation. Eligible Rehabilitation costs on the praperty shall be at least 30% af the Base Value o� the property. Such Eligible Rehabi{itation costs must come from the rehabilitation af at least �Five {5) residential living �nits or a minimum Capi�al fnvestment nf $200,000. b. Any other t�rms as City Council of the City of F'orf Worth deems appropriate, including, 6ut not Gmited to: 1. utilizatiar� of Fort Worth companies far an agreed upon percentage of the total costs for constructian contracts; 2. utiliza�ion af certified rr3inoriiy and wamen owned business enterprises for an agreed upon percentage of the tatal costs far construction contracts; 3. property inspection; 4. commit to hire an agreed upon percentage af Fort War�h residenfs 5. commif ta hire an agreed upon perceniage of C�ntral City residents 6. landscaping; , 7. tenant seiection plans; and . 8. management plans. C. C�iVIIV��RClA�, IlV9USi�lA� /�Fl� COMMUNITY �ACILIii�S D�V�LOPM�NT P��.��CiS �OCr4T�9 IW A N�.� 1. F�II Abaterri�nt for 5 years. In order to be eligibEe for a prop�rty tax abatement, a newly canstructed ar rehabilitat�d commerciallindusfrial and community facilities development project in a NEZ must satisfy the following: a. A cammercia�, indt�strial or a cammunity faciii#ies development project � construc#e� after NEZ designation must haW� a minimum Capita] Investment of $75,aao; ar . b. For a rehabifi�atior� project, it must be rehabilitated after NEZ designation. Eligible Rehabilitation cosfs an fhe property shall be at least 30% of t�e Base Vafue of the pro�erty, or $75,000, whichever is greater. 2. 1°/fl-100% Abatemenf of City Ad Valorem taxes up to 10 years [f an app[icant appfies for a tax abatement agre�ment with a term of more than five years, this sectian s�al� a�ply, Abatement agreements f.or a Commerc9al, Industrial and Community Facilities Developmsnf prajects for up to 'i 0 years are subject to City Councii appro�ai. The 5 applicant may apply with the Economic and Community Development Depar�ment �For such abatement. Years 1 throuqh � c�f the �'ax Abatemenf Aare�m�nt Commercial, lndustriai and Community Facilities Develo�ment projects shall be efigible for 100% aba#errient of City ad valarem taxes for the first five years of fhe Tax Abatement Agreeriment upon the satisfactian of the fol[nwing: a. A commercial, ir�dus�ria� ar a comrriuniiy facilifies development project constructed after NEZ d�signatian musf F�ave a minimum Capita� Investment of $75,040; or b. For a rehabilitaiian projecf, it must be rehabilitated af�er NEZ designation. Eligible Rehabilitation costs on tf�e pro�erty shall be at leasi 30°/fl ofi the Base Vafue of the Property, ar $75,D00, whichever is greater. Years 6 throuqh 1� of t�e iax Abatement �►areement Comm�rc9a1, fndustrial and Community Faciliiies Development projects sha�l be eligibie for 1%-100% abafement of City ad valorem taxes for years six thraugh ten af the Tax Abatement A�reement upon the satisfacfi�n of the fallowing: a. A commer'cial, industrial or a community facilities development praject constructed after NEZ designation musf Fta�e a minimum Capital Investmenf of $75,OQ0 and mus# meet the requirements of subsectfon (c) below ; or b. For a rehabilitatian project, it must be r�i�abilitat�d afte� NEZ designatian. Eligible Rehabilitafion costs on the �roperty shall be at least 30% of the Base Value of the property, or $75,04D, whic�ever is greater and meet �h� requiremen#s of subsection (c} below. c. Any other terms as City Council af the City of Fori Warth deems appropriate, incfuding, bu� nat limited to: 1. utilization af �ort Worth companies for an agreed �apon percentage ofi fihe total cosis for constructiot� can#racts; 2. utilization of cer#ified minority and women awned business enterprises for an agreed u�on percentage of the fotal costs for construc#ion contracts; 3. commit fo hire an agreed upon percentage of Fori Worth residents; 4. commit to hire an agr�ed upor�� p�rc�ntage of C�ntral City residents; and �. landscaping. D. (ViIX�DaUS� ��1S�LO�M�[V� PROJ�CTS L4CAi�� iN A N�� 1. Full Aba#ement for 5 years. In order to be eligible for a property fax abatement, upon complefion, a newly constructed or rehabilitated mixed-use devefopmenf project in a NEZ musf safisfy the following: a. Residential uses in the praject canstifiute 2D percent or more of fhe tofal Gross Floor Area of th� project; and b, OfFEce, eating and entertainment, andlor retai[ sales and serriice uses in the project c�nstitUte 10 percenf or more of tl�e to#al Gross Floor Area of the project; and C� (1 } A mixed-use development project consfructed after NEZ desi�nafion must ha�e a minimum Capital Investment of $200,000; or (2) �ar a rehabilitation project, it must be rehabEliiated. aft�r NEZ designation. E�igible Rehabifitaiion cosfs on the praperty shall be ,at least 30% of the Base Vaiue of th� property, ar $20�,Q00, whichever is greater. 2. 1%�100% Abatement of City Ad Valorem taxes up to 1 Q years If an applicant applies for a tax a�atement agreement with a term of more than five years, this section sha11 appfy. Abatemer�ts agreements far a Mixed Use De�elopment pro�ects tor up fa �0 years a�e subject to City CQuncil approval. The applicant may apply with ff�e Economic and Community Development Departme�t fior sucF� abatement. Years 1�hrouqh 5 of the T'ax Abatement Aqreemenf Mixed Use Deveiopment projects shall b� �ligible for 100% ahatement of City ad valorem taxes for ihe firsf fi�e years of the Tax Abatement Agreement upon the satisfactian at #he following: a. Residential uses in the project canstitute 20 percent or more of the total Gross Floor Area of the project; and b. Office, eat�ng and entertainment, and/or retail sales and service uses in fhe project constitute 10 percent or more ot the total Grass Floor Area of the project; and - c. A new mixed-�se development project constructed after NEZ designation must have a minimum Capital In�estment of $200,000; or far a rehabifitation praject, it must be rehabilitated after NEZ designatior�. Eligible Rehabi�itation costs on the property shall be at least 30°fo of the Base Value of t�e proper�y, or $2D0,000, whichever is greater. Years 6 fhrouah 1U af fihe iax �►bafiement Aqreemen� Mixed Use Devefopment projecis shafl be eligi�le for 1-10�% aba#em�nt of City ad valorem taxes for years six thraugh t�n af th� Tax Abatement Agreement upon the satisfactian of the following: � a. Residential uses in the project canstitute 20 percen� ar mtire of the total Gross �loor Area af the praject; and b. Office, eafiing and enterfiair�ment, andlor r�tail sal�s and service uses in the proj�ct constitute 1 Q percent or more ofi fF�e total Gross Floor Area af the project; c. A new mixed-use deveEopment project construcied after NEZ designafio� must have a minimum Capital In�esfinenf of $200,000; or for a re�abifitation project, if must be rehabilitafed after NEZ designation. Eligibls Rehabilitatian costs on the prape�iy shall be at least 30% vf the Base Value af•the properEy, or $200,000, whichever is greafer; and d. Any other terms as City Council af the City of Fort Workh deems appropriafe, including, �ut not limfted to: 1, .utifization ot Fort Worth companies for an agreed u�on percentage ot the total casts for construction cantracts; ri 2. utilization af eertified minority and women own�d business enterprises for an agreec{ upan percenfage of the total cosfs for construction cantracts; 3. property inspectian; 4. commit to F�ire an agr�ed upon p�rcentag� of For� Worth residen�s 5. commit to hire an agreed upon percentage af Cenfra! City residents 6, landscaping; 7. tenant selectian plans; and 8. management plans. �. ABAi�M�N f CL1[Q�LfN�S 9, ff a NEZ is laca�ed in a Tax Increment �inancing District, City Counci] will determine on a case-E�y-case basis if fhe tax abat�ment incenti�es in Sectian ifl wilf be offerec� to eligible projects. Eligible projects must mee# all eligi�ility rec�uirements specified in Section III. � 2. In order to be eEigible to appfy for a tax abatement, fhe praperty owner/developer m�st: a. Not be definquent in paying proper�y taxes f�r ar�y property awned by the ownerldeveloper ; and b, Not have any City of Fort Worth liens fif�c� against any property owned by the applicant pro�e�ty ownerldeveloper. "Liens" include, but are nvt limited ta, weed li�ns, d�molition lier�s, board-u�/open structure �iens and pa�ing [iens. 3. Properties under a contract for deed are not eligible for tax abatement. 4. Once a NEZ property awner of a resideniial pro�erty (including multi-�'amily) in fhe NEZ satisfies the criteria set farth i� Sections III.A, E.T. and E.2, and appfies for an abatement, a property awner rriust enier in#a a tax aba�ement agreement with iF�e Ci#y of Fort Worth. The tax abatement agreement shall automatically terminate if the properiy subject fo the tax abatement agreement is in violation of the City of Fart Warth°s Minimum Building Standards Gode and the owner Is convicted of such via[ation. �. A tax abatement granted under the criteria set forth in Section III. can only be granted once for a property i� a NEZ far a maximum ferm of as spec9fied in the agreement. If a prope�ty on which fiax is being abated is sold, the Gity wiEl assign the fax abatement agreement far the r�maining t�rm once the new awner s�abmits an applicatinn. . 6. A property ownerldeveloper of a multifamily de�eiopment, commercia[, Endustrial, comm�nity faci�iiies and mixed-use development project in tF�e NEZ wha desires a iax abatement under Sec�ions IEl.B, C or D must: a. 5atisfy the criteria set for�h in Sections I[I.B, C or D, as applicable, and Sections II1,E.1 E.2; and E3. and b. FiEe an applica�ion with the Housing Department or the Economic and Community Deveiopment Department, as applicable; and 0 c. Th� property awner mUst enter into a tax abatement agreemenf wifh the City of Fort Worth. En addition to the oth�r i�rms of agr��ment, fhe tax abatement agreement sha[� provide that the agreeme�t sf�al� autamatically termina#e i� the nwner recei�es ane canviction of a violation af the City of For� Wor�h's Minimum Building Standards Code regarding the proper�y subject to the abatement agreement during the term af the tax abatement agreement; and d. If a property in the NEZ an whicF� tax is being abated is soid, the new owner may enter in�o a tax abatement agreement an the property for ihe remainirig term. �. /�����.�CAiIC)M FE� 1. The ap�alication fee for residential tax abat�men#s governed under Section IiI.A is $25. 2 The application fee for m�lti-fami�y, commercial, industrial, community facilities and mixed-use development projecfs �o�erned under Sections fll.B, G'[ and D.�, is on�- ha[f of one percent {0.5°/a} of the pro�osed project's Capital Investment, not to exceed $1,000. The application fe� will �e refunded upon issuance of certificate ot final oceupancy and ance the properiy owner enters inia a tax abatement agreem�r�t with the City. Otheewise, #he Appiication Fee shall not be credite� or re�unded to any par#y for any reason. 1V. F�� Wr41V€R5 A. ��f(91��.� R�CI�IEAli51PROP�Ri1�S 1. In order to be eligible fo apply far f�e waivers, the property ownerldeveloper must a. Not be de�inquent ir� paying praper�y taxes for any property owned by t�e ownerlde�eloper or applicant; and b. Not have any City liens filed againsf any praperty owned by the applicant property own�Nd�vela�er, inc�uding but not limited ta, weec! liens, demolitiort ii�ns, baard- Uplapen structure lierts and paving li�ns. 2. Properties und�r a contract for deed are not eligible for �e�elopment fee waivers. 3, !n arder for Develapment Fees andlor fmpact Fees to be waived far new canstruc�ion or rehabilitatian projects located in t�te N�Z, a property owner rr�ust submit an application fo the City. Apqraval af the aoplicafion and waiver of the fees shall" not be deemed to be approval of anv asp�c� o�' the aroiect. �efore construction, the appiicant mus� ensure that fhe uroiect is focated in the correct zonina disfiricf. B. ��VCLO�fV�EN�' F�ES Once #he Application far NEZ Incentives has been approved by th� City, the folfowing fees for services performed by the Ciiy af Fort Worth for projects in the NEZ are waivec! for new cortstrucfion projects or r�habilitation projects that expend at least 30°10 of the Base Value ot the property on Eligible Rehabilifation cosfs: �7 �. 2. 3. 4. 5. 6. 7. 8. A[I b�ailding permit re[ated fees (including Pfans Re�iew and lnspections) Plat application fes {including concept plan, prefiminary plat, final plat, shart form replat) Board of Adjustmenf application fee Demolifion f�e Structure mo�ing fee Community Facilities Agreement (CFA) application fee Zo�ing app[ication fee Street and utifity �asement vacation appiication fee Other de�elopmen# related fees not specified abo�� wElf be cansidered for approva� by City Council an a case-by-case basis. C. [MPACY F�� 1. 5ingle family and multi-family residential development projects in the N�Z. Automafic � 00% waiver of water and was#ewater impact f�es will be applied. 2. Cammercial, industria�, mix�d-use, or community facili#y development projecis in the N EZ. a. Automatic 1�D% waiver ofi water and wastewater im�act fees up to $Sb,QQO or eqtaivalent ta two 6-inch meters far each commercial, industrial, mixetf-use or camm�r�ity faciiity development project. b. If the project requests an impact fee waiver exceeding $5�,000 or requesting a waiver for larger andlor more than twa 6-inch m�ter, then City Counc[I appro�al is required. Applican� may request �he additionai amount af impact fee waiver through �he Housing Department. 1l, ��L�/�SE O� C[�Y L�[�NlS The �vllowing Cifiy liens may be released for eligible properties ar projects in a NEZ: A. WE1�D LI��IS The follawing ar� �ligible ta apply for release of weed lie�s: 1. Single ur�if awners perFo�ming rehabilitation fln their properties. 2. Builders or devefopers cQnstrucfing new homes on vacant lofis. 3. Owners performing rehabilitation on multi-family, cammercial, industrial, mixed-use, or communiiy facility properti�s. � 4. �evefopers cor�structing new mufti-family, commercial, industriaf, mixed-use or community facility developme�t projects. B. D�MMOLITIOP� �IEWS �o Builr�ers or cfevelopers developi�g or rehabilitating a property are eligible fo apply for reiease of demafition liens for up to $3D,OOQ. Release of demolition �iens in excess of $30,000 is s�bject to City Councif appraval. C. �O/�R�tlUP10PEN STRI�CTI.lRE L.iEfVS The fallawing are eligible to apply for release �f board-uplapen structure liens: 1. Single uni# owners perfarming rehabifiiaiion on their properties. 2. � Bui�d�rs or developers constructing new single family homes on vaca�i lats. 3. Owners perForming rehabilitation on muE#i-family, commarc�al, industrial, mixed-use, or cammurtify faciliiy properties. 4. �evelapers constructing multi-famify, commercial, �ndustrial, mixed-use, or cammunity facility prajects. p. PAVEIVC LIENS The fol�owing are efigibie tfl apply fQr refease of par�ing liens: 1. Single unit awners pertorming rehabiliiatiot� an #heir properiies. 2. B�ilders or developers constructing new homes an vacant lots. 3. � �wners perfQrming rehabili#ation on multi-famify, commercia�, industrial, mixed-use, or cammunity facility properties. �4. � Developers canstructing mult�-family, comm�reial, indusirial, mixed-use, or community facility pra�ects. �. ��IGI��� R�CIPI�NiS1�RO��RTIES 1. In order fo b� �ligibfe to apply for release of Cify liens, th� prop�rty ownerlde�eloper: a. musf not be delinquent in paying property faxes for any property owned by the ownerf�eve�ap�r �. b. must nafi have been subjecf to a Building Standards �Commissian's Order af Demoli�ion where the property was demalished within the last five (5) years; and c. must not ha�e any City of Fort Worth liens fifed agair�st any other praperty awned by the applicant property awr�erldeveio�er. "Liens" includes, but is not limited ta, weed liens, d�molition liens, baard-uplopen struc�ur� liens and paving liens. 2. Properties under a contract for deed are not eligible for re[ease of Ciiy liens. VI. �ROC�DURA� S [��S A. APF�LICA710N Sl1�M[S�I�N The applicant for NEZ in�entives under Sectians III.A, B, C. D., IV, and V must corr�plete and submif a Ciiy of Fort Worth "AppGcation far NEZ Incenfives" and pay the appropriate application fee to the Housing Department or #he Economic and Community De�elopment Departm�nt, as applicable. 11 2. The applicant for incentives under Secfions I11.C.2 and D.2 musf also complete and submif a City of Fort Wortf� "Application for Tax Abatement" and pay the a�propriate a�piicatior� fee to the Economic and Community DEvelopment Department. Th� applicatian fes, review, e�aluation and approval will be governed by Ciijr of Fort Wor�h Tax Abatement Policy Statement for Qua�i�ying Development Prajects. �. CE�iIFiCA710N5 FOR A.PPL[CAiIORlS UND�� S�C�IONS IIL�,, �, C.1, �.1, N, AND V �. The Housir�g Department will review the ap�lication for accuracy and completeness. Once comp�ete, Ho�sing Department wiil certify eligibi�ity of the application based on the criteria set forth in Section III. A, B, G.1, D.1, IV, and V af this policy, as applicable. Once an applicafion is certified, the Hausing Department wil� infiarm appropriate departments administering the incentives about the certified application. An orientation meeting with Ci�y d�par�ments and the applicant may be sc�edufed. The depa�irr�ents includ�: a. Housing Departme�t: praperty tax abatement for resicier�tia[ properties and multi- family developmenf proj�cts, release of City liens. b. Economic and Cnmmunity Development Depa�#ment= prop�rty tax abatement far cammercial, industr�al, community faeilities or mixed-use develapment projects. c. Development �eparimen#: development fee waivers. d. VVater Department; impact tee waivers. e. O#her appropriate departmenfs, if applica�le. 2. Once Deve[opment Department, Water Depar�ment, Econamic and Community De�eiopmsnt Depar�ment, and/ar ofher appropriate c�epartment recei�e a certified applica#ion from the Housing Department, each departme�tloffice shafl fill out a "Verification of NEZ Ir�centives for Certified NEZ Incentives Application" and return it ta the Housi�g �epartmen# for recard keeping and tracking. C. A�PLIC�►710N R�VI�W ANQ �VALUA�IOiV �'O�t A►PP�ICAiIOAlS 1. Property Tax Abatement for Residential Prop�rties and Multi-family De�efapment Projects � a. For a campleted and certified appfication for no mare than five years af fax abatemen#, wiih Cauncil approval, the City Manager shall execute a tax abafem�nt agreemenf wifh tf�e applicant. b. For a completed and certified multi-family dev�lopment project applicaiion far more than five years of tax abatemer�t: (1) The Housing Department wil[ �valuate a compieted and certifed app�ication based on: (a) The project's increas� in the value of the fax base. � (b) Costs ta the City (such as infrastructure partieipation, etc.), {c) Percent of car�struction con�racts committed to: {i) �'ort Worth based firms, and (ii) Minority and Women Owned Business Enterprises (M/WBEs). (d} Other iiems which may be negotiated by fhe City and #he applicant. 12 (2} Considerafion by Council Commitiee. Based upon the outcome of the evaluation, Hausing Dapartmer�t may present the applicafion to fhe Cify Cauncil`s Economic De�elopment Committee. Sho�ld #he Housing Department present the applEcation �fo the Economic Development Commitfee, the Committe� will consider fhe applicatian at an open meeting. The Committee may: (a) Appr�ve tE�e applicatian. Staff wilf ther� incflrporate th� applicatian into a tax abatement agreement wnich wifl be sent to the City Council with #he Committee's recommendation to approve the agreement; ar {b) Requesf modifications io tf�e application. Housing Department staff will discuss the suggested modifications with the applicant and t�en, if the requested modifications are rnade, resubmit the m�difiad applicafion to the Committee for consideratEon; ar (c} Deny the application. The appEicant may appeal fhe Committee's fi�ding by requesting the City Courtcil to: (a) disregard the Committee's finding and (b) instruct city staff io incorporate the application into a tax abatement agreement for futur� cansideratian by the City Councif. (3) Consideration by the City Gouncii The City Co�ancil retains sole autharity to approve or deny any tax abatement agr�ement and is under no �bligation to approve any tax abatement application ar tax aba#ement agreemen#. Th� Cify of Forf Wor�h is under na abligation to pravide tax abatement in any.amaunt or value to any applicar�f. c. Effective Date for Approved Agreements All tax abatements approved by the City Counci! will become effective on Jan�ary 1 af the year fnllowing the year in which a Ceriif�cate of Occupancy (CO) is issued for t�e qualifying de�elopment project {unless otherwise specified in the tax abatement agreement). Unless ofF�erwise speci�ed in the agre�ment, taxes I�vied during the consfructiart of the project shal[ be due and Payable. 2. Property Tax Aba#ement for Commercial, [ndustriaf, Community Facilities, and Mixed-Use Deve[opmeni Prajects a. For a comp�efed and c�rtified applicatian far no more than five y.ears of tax abafemer�t, with Councif appro�al, the City Manager shall execute a tax abafement agreement witf� the applicant. b. For a compieted and cer�ifiecf ap�lication for more than five years of tax ahatemen�: (1) The Economic and Community D���lopment Department wilf evafuate a completed and cer�ified appfication based on: {a) The project's increase in the vafue of ihe tax base. {b) Costs to the Cify (such as infrastrucfure participation, etc.}. (c) Percent of eanstruction contracts commift�d to: {i) Fort Wo�h based firms, and (ii) Minority and Women owned �usiness Enterprises (MIWBEs}. (d) Other items which may be negotiated by the City and the a�plicant. 'I 3 (2) Consideration by Councif Committee Based upnn the outcame of the e�aluation, the Econamic and Community Development Department may present the application to fhe City Council's �conomic Dev�lopment Commiftee, Shauld the Economic and Community Development Department present the application �o the Econamic Deve[opm�nt Committee, the Committee will consider #he application at an open meeiing. The Committee may: (a) Approve the appfication. Staff will fihen incorporate the applicatian inta a tax abatement agreement w�ich will be sent to the City Council with the Commitfee's recammendation to approve the agreement; or (b) Req�esf madifications to the application. Econamic and Commu�ity Development Department staff wi[f discuss the s�ggested modificat�ons with the applicant and then, if the requested modifrcations are mad�, resubmit the modified application io the Committes for cansideration; or {c) Deny tF�e application. The applicant may appeal fhe Commiitee's finding by requesting the City Council to: (a) disregard the Committee's fnding and (�} i�struct city staff to incorporafe the applica�ian i�to a tax abatement agreemer�t for future consideratian by the City Councif. (3) Considerafion by the City Cauncil The City Caunci� retains sole authority to approve or deny any tax abatement agresment and is under na � obligation to ap}�rove any tax a�a#ement application or tax abatement agreemenf. The C�ty of Fort Vllarth is under no obligation to provide tax abatement in any amoun# or value to any applicant. c. Effective Date for Approved Agreements All tax abatements approved by the City Council will �ecame effecti�e on January 1 of the year followir�g the year in which a Certiticafe af Oceupancy (CO) is iss�ed for the qualifying de�elo�ment project �unless otherwise specified in t�e tax abatement agreemenf), lJnless otherwise specified in the agreement, taxes [e�ied d�ring the consfructian of the project shal[ be due and payable. 3. Development Fee Waivers a. For certified applications of development fee waivers thaf do not require Council ap�ra�al, the Develapment Department will review ihe certified applicanYs applicaiion and grant appropriate incentives. b. �or certified applica#ions of development fee waEvers that r�quire Council a}�proval, Cify staff will review the certified applicant's application and make appropriate recommendafions to the City Council. 4. Impact Fee Waiver a. Fnr certified app�ications of impact fee waivers that do not require Counci� approval, the Water Depar�ment will review th� c�rtifi�d applicant's applicafion and grant appropriate ince�ti�es. 14 b. For ceriified applications of im�act fee waivers thafi require Couhcil approvaf, the Water Department wil[ review the certified applicant's appiication and make appropriaie recommendations ta the City Cauncii. 5. Release of City �.iens For cer�ified applica#io�s af release of City liens, the Housing Department will refease the appropriate liens. VlI. O�'H�R F3UL�S ��F�`IaAIRlING YO �RDPER�Y iA,X A��►i�IVI�Ni A. R�CAPiURI� If t�e ferms of the tax a�afement agreemenf are nat met, the City Cauncil has the right to cancel or amend the abatement agreement. In t�e event of cancelfatian, the �ecapture of abat�d taxes shall be limited �o the year(s) in which tl�e default occurred or continued. �. INSP�CTION AAID FrI�ANCIAL V�RI�ICAiION �'OR �L1LTId�AMI�Y, COtVi��RCIALI I�I�USiRI/�L, COI�A1ViUM[iY FACILI�I�S �1M9 l4lICX��-US� D�V�LQPiVY�N�' �R�JCCiS The terms of the agreemen# shal� include the City af Fort Worth's right �a: {1} re�iew and verify �he applicant's financia! s�atements ir� each year dt�ring the life of the agreement priar ta granting a tax abafement in any given year, (2) canduct an on site inspection of the projec# in-�each year during the life of the abatemen# to verify cnmpliance with the terms of the tax abatemenf agreement. C, EV�.�UATIOW FQR 1ViULTIoFA�IIILY, CQNi�ERC1A�1 INDlJSiF21A�, COIV�lIflURlIiY �ACI�IiI�S �� MIX�DnUS� ��V��OPM�I�i PR�J�CTS Upon. completian of construcfiian of the facilities, the City shafl no less than annually evaivat� each project r�c,eiving abatement to insure compliance with the ferms of the agreement. Any incidents of non-compliance will be reported to the City Co�r�cil. On or before February 'Ist of e�ery year during the life of ihe agreemenf, any indtvidual or entity receiving a tax abafiemeni firam the City of �or� IMarth shall provide information and documentafion which details the property awner's compGance rrvith the ��rms of the respective agreement anc� shali certify tha� �he awner is in compliance with each applicable term of �he agr�emen�. �ailure to reparf this informa#ion and �o pro�ide the �required cer�ificafiion by fihe above deadline shall result in canceClafian of agreement and ar�y �axes abat�d in �h� prior y�ar beir�g due and payable. D. �FF�C7 OF SAL�, ASSIGf�MENT OR LEASE �� �RO��RTY ff a property in the NEZ on which tax is being abated is so3d, the new owner may enter inta a tax abafem�nt agreement on the property far the remaining term. Any sale, assig�ment or lease o� the property which is not permitted in the tax abatement agreement results in cancel�afion of the agreement and recapture of any taxes abafed after the date on which an unspecified assignment occurretl. 15 Vlll. OTHER INC�AliIVkS A. PEan reviews of p�oposed d��elopmenf projects in the NEZ will be expedited by the Develapment Department. �. The City Council may add the following incentives ta a NEZ in the Resol�tion adapting the NEZ: �. Municipal sales tax refiund 2. Hamebuyers as�istance 3. Gap financing 4. Land assembly 5. Conveyance af tax foreclosure properties 6. lnfrasfr�cture improvements 7. Support for Law Income Housir�g Tax Credit {LIHTC} applications 8. Land use incentives and zoninglbuilding code exemptions, e.g., rriixed-use, density bonus, parking exemption 9. Tax Increment F'inancing (T1F} 10. P�blic lmpravement District {PID) 11. Tax-exempt bond fi�ancing � 2. New Model B�ocks 13. l.oan guaranfiees 14. Equity investments . 15. Other ince�ti�es that will effectuate the intenf and purposes of NEZ. 16 Exhibit B 31Q4 �astcrest Court Lot 9, Blocic � Eastcrest Addition Exhibit C Project Description Single Family Residence 90% Brick Veneer 1500-1900 square feet 3 Bedroomsl2 Baths Two car garages Arched Windows at Front of House Front Yard Landscaped Microwa�e with built-in Vent-A-Hood Wood Burning Fire Place Buil#-in Security Sysiem Comp�ter Area with CPU & Printer witl� a dedicafed telephone line Vaulted Ceiling in Master Bedroam and L.iving Room French Doors � Separate Tub/Shower in Master �atY�room Garden Tu� �n Mater Bathroom ���:� � _ � .. F`oRr �oRTx � � V AppZication No. �� � �U�J � � � � ' cxT� oF ���.�r w�RTx � N�IGHBQRHO�D E�P��WERNXENT ZON� (N�Z} PROG-RAlVI PRQJECT CERTTFICATION APPLrCAT'�ON � FORM B FOR ZNVESTOR O'oVNE�tS (SING�,E FA�IL�' O1�LY) I. A.PPL�CATTON CHECI� LIS�` .please submit the_ �oI�owing documentation wi� each prape�ty requesied: �"�s' ". 9` �- .4 � L � A eomp�eted�"appl�ca�ir�t�;fo�ii -3- 5 �'-v' ' ,-� «;�[]-_ ..ti A list o£all�.pzflpertie�, o�taed,by the applicant in Fort Worth � (� Apglication fe� af $2�:00 (for ta� ahatement �.pplic�.tions �ax�y) � ❑ Proof of ownershig, s�.ich as a�arranty deed, affidavit of heirship, or a probafed will 4R . evidenee of site•canfirol., sn�h. as aptzan to buy - - �� [( Title abstiacf=of �a.e �pxaperty (vpi�o�aal) � � ' • ' ' ' For Rehabi�itation I'i`oiects Uzzlv: ` _ '❑ �'or a projeef in the planning stage, please submit a coFnnleted s�� ofl�e�iabi�i�.tian. . .• ��(Remodel) �lan and:a list of elf�ble.r.eha��.iiatiori���sts'�:�(fo� a�r�lications o#'fa� �• abaiements �nd development fee wai�vers for rehab grojects on�y) [] Once a projec� is cornpleied, piease subrnit praof of �the eligible rehabilitation costs�` such as i�vvices, aoniracts, or xeceipts. (�or applicaiions of taz abaiements onIp) � '� Efigible rehahilita�.on includcs ouly physical improvements to real groperty. It rloes N�T inolude personal property such a.s fuzniture, app�isnees, equipment, and/or su,ppIies_ �'otal eligible rehabilitation casts shall ec�l � ta or exeeed 30% af the Taixant Counfy Appraisal Distriet (TAD}, appraised value of �e� siructure during the � year rehabilftation occurs. � . pp . ].. Ap�licar�i: � � �l v,�t�t.� ��i.,t�1�;������utact Person: � f� ���' 3. Address: � f��� ���,���� S�- ���`' ��;�. rY �-���Z . S�reet � ���� _ City. State _ Zip �� . Q�. �hone na.: �J� d�7�-�3"I.� _: 5. Fa�c 1'�0.: �f7�� �t� f. Email: . ���,� D� ��. �r--�t���. -�Y: r�s '�. A.gent (if a.ny) . � 8: Address: - - - - �� II A �icant ! A��N'T �NFi}1t�VSA.TY�N ' � � — ! — —. � — � - � ^� . Sixeet 9: Phane no.: ," � � � �.i. Em�li: � City - State� Zip 10. Faz Na.: ' a .. : ii you nead further inforz�ia#on or elariixcatian, please contact Chun-I �u at (81'� �71-7381 � ar Bea Ce�ra at (81� 871-8036. - � � 1 � � � O�RT'�QRTH - . � iII. PROPERTY ELIGI�ILTI'Y i �. Ple�se �ist dow� fhe addresses and lagal descriptinns of the property where you are applying �c�r NEZ incentives and otfiex praperties you o�vn in Fort Worth. Attach rnetes and bounds description i�f no address or legal deseripiio.n is available. Table 1 Property Ownership A.ddress , � (Prnject Locaiaon) _ -- - i �. - � - - � _i Zip � Leg�l Descripiio�a Code ��bd.ivisian Lo� No. _.� � _�I - �- - � -��.��� �����. , - - �--. � i � --- -� �������-�,��� -- � ._ � - . ._' , - - - -- - ,_ '� - _ I Slock No. I � .� �� -� � (Please attacin additianal skeeis of paper as needed.) ' � � �� � 2. F�r -e�c� proper�ties listed zn Tab��e� 1;°please c�eck �he bpxes belaw fo iniiicate if: �• o tb.ere are taxes du�; oz jl� �� � � � there are City liens; or �� o you have b�en subj�ect to a Bui�ding Standards Gommi�sion°s brder af Dernolitzan vvhere the property �was demolished within the Iast five years. �j" Q Table 2 Prapert.y Ta�es and City Liens � . , Addxess Properiy I City Liens on Praperiy � .':. <°, ., ' :��: :�: _ � Tages �==qV:ced Baa[�d-up/Open , .Demoiitian•= Pavzng , -- �r.der bf-. I "��-- . .- "° �.,. ` . . '� ,. �'�,. ; - :: -:Due .- N f �iens -�S�ucture Liens � I Liens •� :� Liens Demoliiion� ' . .. .. �I . -�- ' :0 -- , ri --- �- 0 � .- - 1J um ,:� �:u.. - ' :,"_` t'' - ' . . � ' �' �,}_ ;', .,�r: R 'Ll � '�f; . � : ' . . .;�, ' '. ❑ �- ❑ --- � „ a. , . , I,- :Y�,> . a• K �•� _� .,— � � . . �,9 � � ❑ . � : . � � ' -� . - ' .' � � : � —p :..�. -: ..: .� � �='- � -'- � —� - . I _. . . • �� � � + � --� . I ❑ I ❑ � � � . . -- ,- - � - � -o - o_ , . _ , ti .o..:_ .:� o _ � - - � . , - � - .o-- .5. � .. -o - _ .-. , o Y - � - -- � - I I 0-- 0 1 ❑ --❑ -� 0- ❑ I I I .(Piease attach additional shee#s nf gaper as needed.) 3. D� you owu other properiies under a�her aaames? ❑ Yes�o � If Yes, please specify , �4. Does the proposec� development confarm with Cif�* af Faz-t Worth Zaniag? +[] Yes .� `�� 5, is Ehis property i�nder a cvntract for deed? [] Yes � �No �� ❑ No � s �4RT �ORTH � b. Has t�e canstruciio�a on the properi�' been caax�pleted or i.s it fn the planning stage? Wha� iype of constrnction? , ❑ Consir�ct�on Comniet�d r'�I iJnder Cnnstructi _o_n �C In Plannin� Sta�e ❑ Naw Construction �] Re�ab ❑ New Constr�ictian ��] Reh:a� � New Construetian [] Rehab 7. �' th� construct�on an the property has bean conr�pleted whe� this applicatiQn is subrr�itteci, vvhen vvas the work done? � 8. . If it is a� rehab praperty, does (or will} ihe rehabiU�tataoA wark* �one on tihe propez-#y equal tv at least 30°fo of the Tarrani Couuty Appraisai Dis#rict (TAD) assessed value flf the str�uc�ure during the year re�iabiiitation (remndeled} o�curred? ❑ Yes �] No *Only physical xmp�ovements to real prpperty is eligibl�. DO N�T include personal praperty su.ch as furni�re, appliances, equipment; and/or supplies. �V. .r�,.T1�TC�NTTVES — — — — : . - . . . : . . . � . . ~ 1. �ha�•rncentives are you applying far?; - . ,. � � . . � Mufiicit�-aI Pronertv Taaz Abatemen�s �� � � ' � ' � Devclonment Fee'Waiv�rs • � � � �' t�ll bui�ding pe�nit relaied fees (including Plans Revievv aiid inspect�ions) How much is your tatal develo�meni casfs? $: j� ��`� �� .. n � H a w m U c h z s t h e t o t a l s q u a r e f o o t a g e o f � o u r pr a ject? ���,�,��_ s���� ��t �.� Plat appiication fee (including conce�t plan., praliminary p�at, fina7 plat, short fozxn replat) � 13oard of Adjustment appliaa#ion fee ❑ Demolition �ee � � _ �._ �] Structu�e z�novuag fee � . .. . , � Coznmunity Facilities:Agreament-{CFA) a�plicatian:£ee. - , � _ -• � .- � � .�oning appli�aiiQ�t fe� � � � � � - . '; , � ' ' _ �Street and utility easement , � � �iaapact F`�e VVai�rez-s . � � Xznpact fee waiver �� : . , IV.Ceter Si�e „��� How many meters? ��; �: : 1.2e���se of Citv Liens � ❑ Weed liens . � �] � Board uplopen str�cture liens, . . ` , [� � Derriol�tian liens . � : ' � ❑ Paving Ziezzs — — —� — — —. , _ — . . �. _... — � 3 � � # �ORT �ORTH _ v. Acxivo�En ��rrT� - - - i - _ ' — - - — —. - -, - . Z hereby certify that the information provide� is frue and accurate to the besi of my knowledge, I hereby acknow]erige that I�ave receix�ed a copy o�'�Z Basic Iz�centzves, which governs the granting of ta,x abateznen�s, fce�waivers and. ireleasc o�' Ciiy Iiens, and that az�y VZOLATION of �he te�ns of the 1�Z Basic �c�n��es ox MI�REpRESE�'ATz�N shall constztute grounds for r�jectibn of an app�ication ox termination of incentives.at the discretion of the City. � � I understand that the approvaZ af fee waivers a�ad othar incentives shall no� be deemad ta bc approval af az�y aspect of the p.roj ect. I undersf,ana that I am r�sponsible in vbtainirig required permits azid inspections from the City and in ens�g �e project is locateci in the correct ,�oning district. I agree ta provic�� any addifional information for detezxnining eligibility as requ�sted by the City. ..� ��x�t � �. ��l���,� . . .: Y -- ����.����� . �('I` P�ED NAMEj (A ORIZED Si�NATURE — ������ _ ) (!SA'�`E} _ M1�f__ _ _ _ � � � . ~a�=;�=�=` _ . �'� _ - � . _ .I'I�:rse ni:xi�, fii� ��i'r- i.���i;���� �ir�r 1 � � - - �- - - _ -_ - _ _ . . ,, �� .. '����lChl`i{FC3 tfk; �� _ _- ,' . � •. . � ��U� � ' . �' - - _�_ __.. _.--- . � . . �{�'1�{���F��'or�V4�fiT"t�l,I��{1k1�ETl�'.�}C"}:�'1'CfTllll� '- - `'_�„__,<"j�f;. - -_ `-.-- ,�i�;_:,_:,;:�, . - . _ . �. i . . ��� ..- : �- . . � �t • I�1�(k'!'}ii��;���tinrc,�-�:c�i� _ti�r�•c-t,:i='��r! ��'ntrft, T���s ?{���1�: � � �. �F-:__'__,..�i -"_ -;� . � _ _ . � � . ��#i] I i, � %�!-.;'��.}� . ._' _ : . _ �. r=�. . ,�;:. _ _�= - _ �li{_'`�{�t!-�i�r'E�-3 {tl-i�2.�. - - . :�.. � .. , � �� � ���LiiK . _ : . _: L _�i``, _ . . . �" . .. - ., -�; , �y, = — Electronic version af this form z� avaiIable by request. Please caY1817-871-738 � to request a capy. For Office Use Only _- __ --- - — - - , -- � •�p�laca�on No.. � .� ���,' �� � In which NE�? � �'jj� CO?IiUTF]i WItI1�Z017111 � ^ � � TAD ID • ' � g• ��Yes ONo � :� Contract for deed? .❑ yes L]� No T�e? ' j�'j,Nevs, constraction ❑�Reh�b � Cons�-uc�ion comp�etion date? ❑ Sefore NEZ [�.After NEZ Ownership � Yes [f No Relaab at or higher than 30%? ❑ Yes ❑ Na Consistent with the NEZ plan? � Yes Tax cur�rent on this. ro e? . x i� No` P. A rtY � Y�s ❑ No Tax currei�t an other properties? � Yes [� No .� City �ens on �is pzoperiy? Czty �iens `on�o�Zer properties? - o Weed lien;s ❑ Yes � Na � Weed liens ❑ I�es � No o Board-up/open structure Iiens ❑ yes ' � �o � Board-up/open structure Iiens �] 'Yes � No - .� Demolition Iiens ❑ Yes k No � � De�:oli�ion liens ❑ Yes � No � Pavz�g liens ❑ Yes [� Na o pay�g Iiens � ❑ Yes � No � Order af dert�olztian ❑ Yes 7[�' No � Orde;r af demoiition Certzfed7 . ❑ Y'es [� No ❑ 1'�s � No Certified bp . Date certification issued? �� ��� � 7£not certified, rEason ,� � � - � Referred to: �Economic Development []Housing �D�velopment �,Water ❑Gode 7'PW � Revised Augusi 23, 2DOX . — — — — ._...� � W City o�'Fort Worih, Texas M�yar a�d Counc�i Cor�mun�cat�or� . pATE RE�ERENCE Nl]MBER LOG NAME PAGE 9/101�2 ��� ��3� I� . QSNEZ � 1 of 3 � sueaEc� AUTHORIZATlON TO ENTER lNTO TAX ABATEMENT AGREEMENTS WITH THE F�RT W4RTH HOUSING FINANC� CORPORATION �OR THE �DEVELOPMENT OF S-1XTEEN SING�.E-FAMiLY HOMES FOR THE EASTCREST SUBDlV�510N LOCATED lN �THE ST�P SIX NEIGHBORHOOD EMPOWERMENT ZONE � RECQMMENDATION: Ifi is recomme�ded that the C�i#y Council; Ap�rove the Fort Vllorth Ho�sing Finance Cor�aratian {FWHFC) application far Municipal Praperty Tax Abatement for the Eastcrest Subdi�ision; and � 2. �ir�d that the statements set forth in the reci#als of the attached Tax Abat�ment Agreaments (the Agreements} �vith FWHFC are true and correct; and � . 3. Authorize tF�e City Manager to enter into tax abatemenf agreements with of sixteen sirigle-family homes in the Eastcrest Subdivision located in Empawerment Zone (NEZ), in accordance wi#h the NEZ Basic lncenti�es. D15CUSSI�N: FWHFC for the de�elopment the S#op 5ix NeighborhoQ� The FWHFC is #he deve�oper/owner of the Eastcrest 5u�division in tF�e 4700 Black of East Berry Street and Eastcrest Gaurt lacated in NEZ Na. 1�. � � The FWHFC applied for municipal property tax abatement under the NEZ Basic lncentives {M&C G- 13208R dated June 5, 2002, M&C G-13580 dated April 2, 2002, as amended, and M&C G-13662R dated July 23, 2Q02, as amended). Tha Ho�sing Depa�tment has rsviewed the application and�certified that the praper�y meets the eligibility criteria to receive NEZ municipa! �roperty tax abatement. The NEZ Basic Incentives offers a fiv�-year municipal praperty fax abatemen# of the increas�d vaiue of impro�ements to a derieloperlowner af a�y new ham� constr�cfed�within a NEZ. Upan execution af the Agreements, the totai assessed value of eact� hame in the Eastcresfi Sub�i�ision used for caicu{ating mu�icipal properky tax will be froz�n for a five-year period, starting on January.'I, o# t1-�e year follawing the year in which the home is sold, at the pre�Empro�ement val�e af each lot as defined 6y the Tarrant Appraisal District (TAD} on January 1, 2002, as foilows: � Pre-lmprovement TAD Value of lmprovements $ -0- o, Pre-lmpro�ement TAD Valu� af Land $�,OQO�per lot . � Tatal Pre-Impravement TAD Value $�,�00 per lot +�'ity a�'�Fo�t �Yo�th, Texas Mayor ar�d Caunc�l Com�n�n�ca�lor� QATE REFER�NCE NUMBEft. LOG NAME �q�� 9110102 ,��7 9�35 � 05NEZ , 2 of 3 -sug��cr AUTHORIZATION TO ENTER WT� TAX ABATEMENT AGREEMENTS WITH THE FORT WDRTH H4USlNG FINANGE CORP�RATI�N F4R THE DEVELOPMENT OF SIXTEEN SINGLE-FAMILI'_ HOMES FOR THE EASTCREST SUBa1VISION LOCATED lN THE STOP SIX NEIGHBQRHOOD EMPOWERMENT ZONE Address 310Q Eastcrest Court 3901 Eastc�est Cour� 3104 Eastcrest Cour� 3105 Easficrest Court 3'108 Eastcrest Caurt 31 Q9 Ea�tcrest Cour� 3� 12 Eastcrest Court 3113 Eastcrest Caurt 31 'l 6 Eastcrest Court 312Q Eastcresi Courk 3124 Eastcrest Court 3128 Eastcrest Court 3132, Eastcrest Court 3133 Eastcrest Co�r� 3'�36 Eastcres� Court 3137 Eastcrest Caurt Leqai Descrintian Lot �0, Block 1, Eastcrest Addition Lat 6, B9ack 2, Eastcrest Addi�ion Lot 9, Block 1, Eastcrest Additian Lot 5, Bloek 2, Eastcrest Addition 1 ot 8, Block 1 T Eastcrest Addition Lat 4, Block 2, �astcresfi Add9tior� �.ot 7, Blocit 1, Eastcrest Addition Lot 3, Block 2, Eastcrest Addition Lot 6, Block 1, Eastcrest Additiar� I�ot 5, Block 1, Eastcrest Addition Lot 4, Block 1, Eastcrest Addition Lot 3, Blocic 1, Eastcrest Add�tion Lot 2, B1ock 1, Eastcrest Addifian Lot 2, Block 2; Easfcrest Addition Loi 1, Block 9., Eastcrest Addition Lot 1, Bloek 2, Eastcrest Addifian FWHFC expects to campiete canstruction an or before June 30, 20Q3, and sell th� sixteen hames tfl new owners. Upon #h� sale of each home by FWHFC, the Hc�usi�g Qepartment staff will present t�� prQposed assessment of tn� tax abatement agreements to the City Council for approval if the r�ew owner meets al1 efigible criteria as �stated in �the NE2 Basic lncentives. FWHFC will invest $'i,600,�0(} tp construc# sixteen single-famify homes in the Eastcrest �ubdivision. The lacation of the praQosed develapment,..typical ele�ation, and project description are attached tc� #1�is Mayor and Counci� Communicatian. The municipal proQerty iax on the improved �alue is estlmated at $558 per house per year or a tofal t�f $44,640 over the fve-year periad. - On August '! 3, 2002, the above proposal was endorsed by the Economic and Cammunity Developmenf Gommitkee for City Council approval. The Eastcrest S�bdi�ision is located in COUNC�L DlSTRICT 5. �`ity af �'ort �oYth, Z'exas ~ M�yor ��d Caunci[ ��ommu�icatior� DATE REFERENGE NUMBER LUG NAM�E P�AGE ' 91�a1o2 , C-'19235 �_ � �SNE� � 3 af 3 sus��cT . , AUTHORIZATIQN TO ENTE� fNTO TAX ABATEMENT AGR�EMENTS 1N1TH THE F4RT W�RTH HOUSiNG FINANCE CORPORATiON FOR THE DEVELOPMENT OF S1XTE�N SfNGLE-�'AMiLY HOMES FOR THE EASTCREST SUBDlV1S10N LOCATED 1N THE STOP SIX NEIGHBORHOOD EMPOWERMENT 2QNE F15CAL INFORMATION/CERTiFICATIQN; " The Fir�ance ❑ir�cto� certifies that�this action wi1{ have no material effect on City funds. I:T`�i 0 Submitted for City M�nager's � FUND , ACCOlTNT , CE�+iTER � AMOIJNT Office by: , (to) Raid Rector 6! AO I Originutin� Departrneat �iead: � � � lerome Waiker 7537 � (from} Additioual Information Cantact: 3�rome Walker • 7537 CITY S�C�tETARY APl'ROVED 091101Q2 �. . � �